- Darren Stent
Tue, 22/01/2019 - 11:20
We've published the latest factsheets for the fund, and they can be downloaded from the links below.
Click here for the latest Class X factsheet (this is the share class used on the WealthKernel online portal).
November Performance Update
In November the trends in the UK Housing Market established during the year have continued. The volume of sales is a little subdued and price movements both up and down are, for the most part, measured in tenths of 1%. Unsurprisingly, in the face of political uncertainty over Brexit on one hand and continued high employment and above inflation growth in average earnings, rental and capital values remain resilient across much of the country.
As LSL Acadata put it in their November Report the market is “Biding its Time”. Nationally house prices were up by 0.2% for the month and 0.9% for the year, although if London and the South East are excluded this rises to 1.5%.
Even within the larger regions there are significant variations. The East of England as a whole is down by 1% over the year, While Southend-on-Sea and Thurrock still show good growth (4.1% annually for both, with the latter recording a new peak), that’s more than offset by falls in Suffolk (down 0.8%), Luton (down 1.0%), Bedfordshire (1.3%) and, most significantly, Cambridgeshire (with prices down 4.6%. The Fund’s properties in Colchester remain popular with sales of two flats being agreed, one just above and the other just below the Independent Valuer’s reported values.
The East and West Midlands continue to give good performance and the situation in Scotland remains in positive territory. Edinburgh, where the Fund’s investments are located, is maintaining its position at the top of the league table.
The NHBC reported in November that new home starts and completions remain solid at around 10,000 per month, but this is still well below the Government’s required figures. The housing shortage is definitely not going away. Housebuilders reported growth in reservations from owner occupiers but a further fall in demand from Buy to Let Investors. These conditions suit the forward purchase strategy of the Fund.
The RICS monthly survey shows a continuing reduction in new supply from private landlords and as a result of these dynamics, rents are expected to rise modestly over both the three and twelve month horizons. Further out, rental growth is expected to outpace that of prices; on average, rents are expected to rise by 3.1% per annum over the next five years.
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 pension/SIPP and ISA only: Class C (ISIN code GB00B95VYK84)
> For General Investment Account, pension/SIPP or ISA: Class D (ISIN code GB00B9608795)