Pent-up demand in the UK residential property market, and Income Share Classes for TM home investor fund.
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July 2020 Market and Fund Update.
The gradual reopening of the UK housing market over the past 2 ½ months had a dramatic result on activity – whilst it remains to be seen how much of this was due to pent-up demand, most observers are surprised by the persistence of the rebound which now has extra momentum with the Stamp Duty Holiday.
Fund Performance Factsheet – July 2020
As per the 19th July, triggered by a confirmation from CBRE in line with RICS guidance that the Material Valuation Uncertainty Clause for UK residential property can be removed, the Fund re-opened for dealing. Last month I talked about how the re-opening of estate agencies has led to increased demand – this has now been translated into actual deals, with agreed house sales 32% ahead of last year (according to Zoopla), and transactional data seemingly being boosted further by the recent SDLT holiday announcement by The Chancellor on 8th July 2020. Furthermore, Rightmove’s research indicates that average asking prices of property coming to market in Britain hit a record, 2.4% higher than in March pre-lockdown, whilst the 3.7% annual rate of increase is the highest since December 2016. In a further sign of a return to normality, HM Land Registry started publishing transaction figures for the period of March to June. Based on that still limited dataset, LSL Acadata reported an annual house price change of + 0.9% to May 2020.
Suspension in dealing lifted: TM home investor fund re-opens to investors.
The property valuer for the TM home investor fund, CBRE, announced that the Material Valuation Uncertainty Clause will be removed for residential properties going forward. As a result, the Fund’s Authorised Corporate Director, Thesis Unit Trust Management, in conjunction with the Depositary NatWest Trustee and Depositary Services Limited have lifted the suspension of dealing in units in the TM home investor fund with immediate effect.
Fund Performance Factsheet – June 2020
Following nearly three months of lockdown we are seeing “light at the end of the tunnel”. As reported last month, on 18th May estate agencies in England reopened and although all expectations were for a cautious start, this appears not to have been the case at the time of writing. Zoopla’s latest data states that sales agreed were up 4% by mid-June, with demand up 46% on March 2020 and supply 15% lower than June 2019. This relative lack of supply is maintaining pricing, with asking prices up 7% year on year and Zoopla’s UK House Price Index up 2.4%. Similar dynamics exist within the lettings market with demand up 60% on March 2020 whilst supply up ‘only’ 36% – leading to a 1.5% increase in the ONS rental index.
June 2020 Market and Fund Update.
Activity in the English housing market continued to accelerate throughout June following its reopening mid-May, with estate agents, buyers, sellers, landlords, renters, lenders, and removal companies emerging from two months of hibernation. Wales saw a partial reopening on 22 June, with Scotland following, more cautiously, on 29 June. The initial bounce has been remarkable whilst the outlook on where the market will settle remains uncertain. As we are moving into the first post-lockdown phase, we are assessing the latest on house prices, rental demand, and supply of properties.
May 2020 Market and Fund Update.
The unlocking of the English housing market led to an immediate uptick in online browsing and demand for sales as well as rentals.
One week after the reopening of the market, Rightmove reported demand for rental property being up 33% compared to this time last year, with Monday May 18th reporting the highest level of rental demand ever recorded in one day on Rightmove.
April 2020 Market and Fund Update.
One of the defining elements of any evolving economic shock is the lag of reliable data – this is even more the case with the current combination of Covid-19 and a shock to oil prices. Both led to something far different from a “normal” recession, and a reliable picture of what the world looks like now will emerge only slowly over the coming weeks and months. Despite that, we are trying to work with what we have to give you the most appropriate snapshot on the UK residential property market at this point in time, and the performance of the TM home investor fund.
Residential Property Investment Fund - Important Information
This presentation describes the TM home investor fund, with the objective of allowing retail clients to gain an overview of the product’s recent history. It should not be considered advice or an invitation to invest.
As with all investing, your capital is at risk. The value of your portfolio with TM home investor fund can go down as well as up and you may get back less than you invest. LEARN MORE ABOUT RISK.
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).
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TM home investor fund by Hearthstone