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Property of the Month – October 2018

Quadrant Court, Wembley Park

Why I like Wembley Park

A large-scale regeneration project is generally a good place to invest, especially if you get in early. There are few larger regeneration sites in

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The current state of the residential property market

The party conference season has underlined the deep differences of political opinion on how to approach Brexit and the strategy for managing the UK economy. Despite record high levels of employment, the climate of uncertainty is affecting business and consumer confidence, and UK growth has slowed, counter to the trend for other major global economies.

The recent performance of the housing market is similarly divided. Slower growth and hikes in stamp duty rates for more expensive properties have meant turnover has declined, as people stay longer between house moves.  House price growth has stalled or reversed in more expensive parts of London and its commuter belt, where the rebound in prices since the financial crisis has reached limits of affordability, and where recent tax changes have hit hardest.  By contrast, outside London, prices have continued to rise across every region, with the Midlands, northern England and Scotland still seeing year-on-year increases of 5% or more.

Tax changes have also combined to make buy-to-let property a less attractive option for private investors, prompting a spate of selling by private landlords across the country.  This is eroding the supply of rental stock, although demand is continuing to increase.  The resulting shortfall is pushing rents higher, and is creating opportunities for institutional investors to enter the sector.

Looking ahead, whatever happens with a Brexit deal (or not), we face a prolonged period of economic and political uncertainty, not just confined to the UK.  No one is sure what they are planning for, so contingency planning and forecasts are likely to err on the side of gloom.

That said, we are probably close the point of maximum uncertainty now.  One way or another, as the shape of a deal emerges, or conversely the prospect of “no deal” becomes a reality, some of the fog will clear, and decision-making will start to adjust to the new climate.

Accordingly, it is quite possible that business sentiment and investment activity will pick up faster than most people currently expect as we adjust to the new reality – whatever it is.  Although the confusion over Brexit is currently dominating the assessment of risks to the UK’s prospects, a lot of that will pass.  The wider global threats from protectionism and political polarisation may well prove more significant for investment markets in the long run.
Despite the uncertainties, it is interesting to note that none of the independent forecasters polled in the Treasury’s latest (September) survey expected a general decline in house prices for 2019.  The 16 forecasts in the survey ranged from 0.3% to 4%, around an average of 2.7%.  While property prices fluctuate with economic fortunes, the residential market, underpinned by the steadily growing demand for housing, has shown through successive cycles that it can be more resilient to downside risks than many other forms of investment.

Risk Warning

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).

Property of the Month – September 2018

The Limes, Nottingham

Given our partners WealthKernel are partially based in Nottingham, it is only fitting that we start our “Property of the Month” series with one of our most recent acquisitions, The Limes in Nottingham.

Why I liked the City ?

The Investment Plan demonstrated that the Fund should invest in the East Midlands and that either Leicester or Nottingham would be suitable. Both have their strong points, but the two Universities and University Hospital, when combined with the public transport, especially the tram system (NET) just made Nottingham our choice.

Nottingham has good railway services, easy access to the M1 and a good selection of both City centre and edge of city shopping.

What I liked about the properties?

We have worked with Bellway, the parent company of the developer, and know that they build a good product. The Limes is in a convenient, but quiet location to the North West of the City Centre, with good access to university and hospital campuses.

Buying early we were able to choose house types that we thought would be good for letting, and an attractive specification.

How has it done so far?

Most importantly the houses have proved very popular with tenants and have let quickly. We hope that with good service from us and our property managers our tenants will make these great houses their homes for many years.

A quick look at the property

Investing in The Limes, Nottingham

 

Risk Warning

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).

Meet the team behind the fund

The team behind the TM home investor fund are passionate about residential property investment and most of us have been working in the sector for many years.

 

 

Alan Collett

Alan Collett

The lead fund manager of the TM home investor fund and is ultimately responsible for selecting the flats and houses within the portfolio. He has managed the fund since March 2017 and brings a lifetime of residential property expertise as a Chartered Surveyor, investment consultant and senior partner at independent property consultancy Allsop LLP. Alan is also a Past President of the Royal Institution of Chartered Surveyors, the global professional body promoting and enforcing the highest international standards in the valuation, management and development of land, real estate, construction and infrastructure. Finally, Alan is also Chair of the Hyde Group, the housing association.

 

 

Andrew Smith

Andrew Smith

Andrew is responsible for our top down quarterly Investment Plan, which provides insight into which UK regions are likely to provide the best return on investment, and what types of properties our fund should invest in. Andrew’s 30-year property investment career has included roles at fund management houses Aberdeen Asset Management, where he was Global Head of Property, and Henderson Global Investors.

 

 

 

 

Cedric Bucher

Cedric Bucher

Hearthstone is led by its chief executive Cedric Bucher who is responsible for overall strategy of the business and day to day execution, including servicing of existing and new clients, whether they are advised or invest directly on homeinvestor.fund.

 

 

 

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).

Introducing the TM home investor fund

An Introduction To The TM home investor fund?️

The TM home investor fund from Hearthstone Investments is the UK’s first FCA authorised,  direct residential property fund available for private retail investors.

While a lot of investment companies work across many different sectors, we only invest in houses and flats for private rent. It’s been that way since we launched in 2009 as the UK’s first fund manager to focus solely on residential property.

We’re passionate about residential property investment and most of our team has been working in the sector for many years. We bring this experience to managing the TM home investor fund, which offers savers the chance to invest in the UK housing market from as little as £100. By working closely with estate agents and housebuilders, we look for mainstream houses and flats across the UK that are likely to increase in value and will be attractive to the growing number of individuals, couples and families wanting to rent. Currently, the fund holds over 200 residential properties across the UK, typically new or modern two or three bedroom houses and flats.

For investors, the TM home investor fund can offer a hassle-free and tax-efficient alternative to buy-to-let or help your money keep pace with property prices when saving for a deposit for your first home, or helping your children or grandchildren get on the property ladder. Within a mixed investment portfolio with equities, bonds or commercial property, the fund can also offer a way to spread, or diversify, investment risk, because residential property acts differently to these other mainstream asset classes as market conditions change.

The fund also benefits our broad range of tenants who enjoy the excellent accommodation and landlord services we provide. In a market where almost a third of the UK’s rented homes fail to meet Decent Homes Standards, which means they either contain safety or health hazards, are not in a reasonable state of repair, do not have modern facilities or do not have efficient heating or insulation, we believe the fund meets an important social need.

Risk Warning:

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).

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