Blog

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).

TM home investor fund starts 2021 with positive returns as a result of 99% rent collection and property valuation uplifts.

The Fund enjoyed a positive start to the year, with the property portfolio increasing in value by 0.33%, and 99% rent collection in January.

Despite the current ‘lockdowns’ in place throughout the UK, the housing market remains open with Covid-secure protocols in place, and we continue to see good levels of activity in both the rental and owner-occupier markets.

Naturally, there has been much speculation as to whether the current Stamp Duty Land Tax (SDLT) holiday will end as originally planned on 31st March, or whether there will be any form of extension.

In our latest Fund and Market Update, Stuart Springham looks at the impact of previous SDLT holidays, and considers the various factors at play in the UK residential property market as well as 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).

We take a slightly different approach to our update this month now that 2021 is firmly underway, and we have the opportunity to reflect on how Private Rented Sector residential property and the tm home investor fund performed in 2020.

Firstly though, despite the latest ‘lockdown’ measures in place across the UK, dealing in the Fund continues as usual.

The housing market remains very much ‘open for business’ across England, Scotland, Wales and Northern Ireland – unlike the situation in March last year. CBRE, the Standing Independent Valuer for the property portfolio of the TM home investor fund, has confirmed that it does not deem it necessary to apply a Material Valuation Uncertainty clause to its valuations.

2020: Resilience of residential property 

After the unprecedented challenges caused by the Covid-19 pandemic and uncertainties surrounding Brexit ‘deal or no deal’ last year, we believe that private rented residential property has demonstrated its value as a diversifier in portfolios. We’ve produced a short presentation looking at how the Fund performed last year and the drivers behind that performance.

We also compare the residential sector with commercial property, and considers the benefits of combining the TM home investor fund with other property sectors.

2020 will be seen as a defining year for the sector: institutional investors were seen to increase their allocations to residential through the year, attracted by resilient capital values, security of income, low volatility, and low correlation with other asset classes – characteristics which can also benefit retail investors in their own portfolios.

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

December factsheets

There was no change in property valuations in the fund for December as the Standing Independent Valuer had limited transaction data on comparable ‘mid-market’ properties due to the Christmas break, and market activity being dominated by the prime end of the market which benefits most from the current Stamp Duty Land Tax (SDLT) holiday.

Rent collection remained strong for the month with 98% of rent demanded being received.

More detail on the portfolio and performance data is contained in the factsheets which can be downloaded by clicking on the image above.

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

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).

The UK housing market has proven to be robust again this month. Capital values have increased across all regions, and demand for good quality rental properties remains high. 

The Fund delivered its highest standalone monthly performance since July 2018 this month, driven by a 0.55% increase in property valuations and another month of strong rent collection.

This is the sixth consecutive month that the Standing Independent Valuer, CBRE, has increased valuations on the property portfolio, but it was notable that they had sufficient comparable data available this month to uplift valuations on 41 of the Fund’s 204 properties in November.

As we head towards the end of 2020 and obtain clarification of the UK’s post-Brexit position and the roll-out of successful Covid-19 vaccines, Stuart Springham looks at what this could mean for the housing market and the Fund in 2021. 

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).

UK house prices continued to grow in October, with activity and price increases most pronounced in areas with higher house prices and for larger homes. This is a result of the higher benefit of the stamp duty holiday for more expensive homes, and a likely result of changes in working patterns leading some to consider more spacious residences.

The Fund’s property portfolio saw another increase in valuations in October. Whilst this increase was relatively small at 0.12%, it is the fifth consecutive month in which the property portfolio has seen upward valuations.

Rent collection was strong again in October, and over 98% of rent demanded in the month was received. 

In our latest Fund and Market Update, Stuart Springham reviews the current factors at play in the owner-occupier and rental markets, and provides the latest key performance indicators for the fund. Stuart also outlines some changes that have been made to our Tenant Management agreement which is designed to deliver greater positive social impact for the Fund’s tenants.

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).

The TM home investor fund posted positive total returns for Q3 2020, reflecting the increased activity in the UK housing market since lockdown measures eased in May, and the introduction of the Stamp Duty holiday.

The Fund continues to collect high levels of rent, and property portfolio valuations have now increased for four successive months.

Stuart Springham reviews the latest Key Performance indicators for the Fund, and the factors at play in both the owner-occupier and private rented sectors of the UK residential property market in our Fund and Market Update.

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).

Unlike the direct commercial property funds, TM home investor fund is open for business, and continues to collect high levels of rent. 

Capital values of residential properties are also seeing upward momentum following the reopening of the housing market, and the current Stamp Duty holiday.

In this month’s update, Stuart Springham reviews the latest Key Performance indicators for the Fund, and the factors at play in both the owner-occupier and private rented sectors of the UK residential property market.

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).