Proptech firm Nextday Property, which trades as Nested, has been named by the Financial Conduct Authority as part of Project Innovate’s first cohort.

It means that Nested can launch its services in an authorised yet experimental environment.

Nested will provide vendors with an interest-free loan for a guaranteed amount if they are unable to sell their property within 90 days, thus enabling the seller to move.

It guarantees the price that a seller will get from day one, with sellers being given seven days to decide whether or not to accept. On acceptance, the sale is guaranteed.

Nested charges 1.8%, including VAT, as a fee, plus 20% including VAT of any amount above the guaranteed price.

Nested currently operates in London only and deals with homes priced at under £1m, but expects to expand nationwide in the near future.

Set up earlier this year by the founder of GoCardless, Matt Robinson CEO, former Songkick CTO Phil Cowans, and ex-McKinsey consultant and trained architect James Turford, the team has already raised £3m from leading investors including Passion Capital, Indeed founder Paul Forster and self-made billionaire brothers Oliver and Alex Samwer.

The FCA’s Project Innovate allows successful applicants to begin testing their products in a regulatory ‘sandbox’ – an environment that encourages innovation and competition, but which also protects consumers.

Applications to be among the first cohort closed this summer, with 24 out of 69 applications succeeding.