Fund Performance Factsheet – May 2019
We’ve published the latest factsheets for the fund, and they can be downloaded from the link below.
Rental demand continues while the sale market rests nationally.
While politicians talk about themselves and occasionally about the need to increase housing supply the fundamental undersupply of good housing remains. Capital values nationally are effectively unchanged with Acadata recording a monthly fall of 0.1% and an annual uplift of 0.3% (1.2% excluding London and the South East). Nottingham, where the Fund acquired 18 new houses in late 2017 and 2018, took top spot in Conurbation annual house price growth.
These are differences which are almost too close to call with Acadata stating that the average house price across England and Wales fell by £250 in the last three months and was up by £1,000 over the year. In reality a stable market in volatile times.
The Independent Valuer identified increased values in the Fund’s homes in Edinburgh and once again in May the Fund again showed a positive return net of fees, with strong occupancy driving the contribution of income to fund performance.
The RICS UK Residential Survey reported in May that buyer demand stabilised, although uncertainty continues to hold back sales in the short term, with surveyors optimistic in both the medium and longer terms, with growth expected everywhere other than London.
In the lettings market, RICS reported that with tenant demand increasing and landlord instructions falling again, the near term rental expectations are positive with rents seen rising across all regions.
NHBC reported housing starts and completions on an even keel at around 150,000 units per annum. Although they only capture results from the majority of housebuilders, not all, it is clear that demand continues to outpace supply, and the housing shortage continues to grow.
The Housebuilders Federation reported levels of site visits and new homes reservations reduced on a seasonally adjusted basis although with both first-time buyers and home movers remain active. Reservations from Buy to Let investors fell yet again, demonstrating the continuing impact of the tax changes impacting individual investors.
The important points that the Fund Manager notes, are that:
- Average earnings continue to grow in real terms
- Across the country house prices are stable with are some regional variations, although even these are in a narrow range.
- Rental demand, and rental growth continues.
Third-party platforms will have different classes available. A selection of platforms and the available classes are shown below, but please contact us if the online platform you use is not shown.
Please note that Hearthstone is not able to provide financial advice, and the information on this page should not be taken as advice to invest in the fund, or as to the suitability of the fund, a specific share class, or platform for your personal circumstances.
Halifax Share Dealing, Tilney Bestinvest, Charles Stanley Direct, iWeb:
Hargreaves Lansdown (telephone/postal dealing only), Interactive Investor, Alliance Trust Savings, AJ Bell Youinvest:
> For General Investment Account, pension/SIPP or ISA: Class D (ISIN code GB00B9608795)
Investing involves risk. Investors should be aware that the value of an investment and the income from it can fall as well as rise, and they may not receive back the full amount they invest. Past performance is not a reliable indicator of future results.
The Authorised Fund Manager is Thesis Unit Trust Management Limited, Exchange Building, St John’s Street, Chichester, West Sussex, PO19 1UP. Authorised and regulated by the Financial Conduct Authority.
Hearthstone Investments PLC 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).