Fund Performance Factsheet – October 2019
We’ve published the latest factsheets for the fund, and they can be downloaded from the link below.
As the UK heads to the polls for the third time three and a half years and Brexit uncertainty continues, one might be forgiven for thinking that the housing market will have stalled as vendors and purchasers wait for clarity. However, HM Land Registry shows an estimated 77,500 housing transactions in October 2019, up 4.2% on September. Although c.2.0% down on a seasonally adjusted basis, it shows how resilient the housing market is, and the perpetual need for homes.
LSL Acadata shows house prices remained relatively flat, with the South West, North West and North East having the highest growth, although the regional differences are quite small. The independent valuation of the Fund’s properties showed a negligible 0.01% decrease in October, whereas LSL’s House Price index rose 0.3%. Recent figures suggest that there has been steady growth in the number of first-time buyer mortgages, and gross mortgage lending in the market has held up, with September 2019 up 4% on 2018. The Bank of England’s latest inflation report echoes this sentiment, noting that UK house price inflation has stabilised around 0%. This has fed through to housebuilding, with housing starts lower than a year ago, which in turn increases the demand on a falling supply.
Demand for good quality rented housing continues to strengthen with the RICS Housing Survey stating that quarterly figures on tenant demand signalled another acceleration in growth in the three months to October 2019. Indeed, demand increased to +22%, the highest level since Q4 2016, yet landlord instructions decreased again with the pace of decline seeming to gather momentum. Hence rental growth expectations in the near term have further improved, with every UK region projected to see an increase over the coming months.
ONS rental data shows rents have increased by 1.3% YTD, with rents in the fund increasing by 1.8% over the same period. The homes in the portfolio are almost fully occupied with five being vacant at the month end – two of which are being sold as part of the on-going asset management activity. Of the three void properties, one was under offer leading to a 98.97% occupancy rate.
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).