The Fund delivered another positive return in the first quarter of 2021 and, as the UK looks forward to emerging from three months of ‘lockdown’, we believe the portfolio is well positioned to benefit from the resulting activity in both the owner-occupier and private-rented markets over the coming months.

The UK housing market continued to see strong activity over the past month having received further stimulus from the extension of the Stamp Duty holiday and we move into spring which is traditionally a popular time to move home. Monthly housing transactions historically average around 90,000 per month, but over 120,000 completed in January, and March saw over 160,000 sales agreed.

With the recently announced 95% Mortgage Guarantee Scheme also in place from 1st April, the outlook for house prices in 2021 is positive, and this is reflected in the majority of new forecasts.

The rental market remained resilient, and the Fund collected almost 99% of rent invoiced in the first quarter of the year. 

In our latest Fund and Market Update, Stuart Springham considers how these measures may drive the housing market through 2021 and reviews the latest key performance indicators for the TM home investor fund.

The document can be downloaded by clicking on the image below.

A detailed list of the Fund’s property portfolio and cash holdings is available in the Portfolio Summary document.

The latest factsheets can be downloaded from our library here.

Important Information

This document is not a prospectus, invitation to invest or advice. Investors may get back less than the amount invested. Information on past performance is not necessarily a guide to future performance. The value of investments in the fund can go down, and there can be no assurance that any appreciation in the value of investments will occur.

Residential property values are affected by factors such as interest rates, economic growth, fluctuations in property yields and tenant default. Property investments are relatively illiquid compared to bonds and equities, and can take a significant amount of time to trade.

Hearthstone Investments Ltd is the parent company of the Hearthstone Investments Group. Regulated business is carried out by Hearthstone Asset Management Limited. Hearthstone Asset Management Limited is an appointed representative of Thesis Asset Management Limited which is authorised and regulated by the Financial Conduct Authority (114354). Hearthstone Investments Ltd (06379066) and Hearthstone Asset Management Limited (07458920) are both registered in England and Wales. The registered office for both companies is c/o Waterstone Company Secretaries Ltd Third Floor, 5 St. Bride Street, London, United Kingdom, EC4A 4AS.

Thesis Unit Trust Management Limited is the Authorised Corporate Director of the TM home investor fund. Authorised and regulated by the Financial Conduct Authority (186882).