Real estate is widely considered to be a safe investment and an effective hedge against inflation, based on historic returns and its strong performance against traditional stock markets and indices in recent downturns, including the coronavirus pandemic.
Across the UK, residential real estate has proven to be one of the safest real estate asset classes due to the high demand for housing, lack of adequate housing supply and predictable house price movements. With uncharacteristically high inflation rates, mortgages are likely to become less affordable resulting in an increase in the number of renters and a subsequent
increase in rents.
The changing landscape of the high street with less demand for office assets due to successfully proven work-from-home initiatives which are here to stay, in conjunction with the increased demand in housing suggests that residential property will continue to be a highly-performing asset class. This will be further strengthened by the current regeneration of towns and cities across the North, which has currently seen high rental yields and capital value appreciation levels in cities like Birmingham, Leeds, Liverpool and Manchester. This informs our investment approach towards our “residential buy, let and sell to tenant” model.

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Our adopted approach of utilising investment capital to purchase homes, letting to our tenants/homebuyers until they are ready to purchase is driven by structural housing issues across the UK, the reliability of residential UK real estate as an asset class for our investors, and the desire to assist financially solvent (but not necessarily mortgage-ready) individuals and families get on the housing ladder without waiting to save, while the housing market eludes them with continuous increases in house prices.

The LP fund will invest equity to acquire good quality residential homes on behalf of our tenants / homebuyers with a maximum purchase price of £800,000. Target homes will be 1-bedroom to 4-bedroom flats, 2-bedroom to 6-bedroom houses, town-homes, duplex apartments located across the UK, with competitive initial rental yields, anticipated yield compression during the term of the investment and an anticipated capital value appreciation.

To achieve competitive returns for the LP fund, a proactive hands-on approach to deal sourcing, underwriting and asset management of the portfolio will be adopted. This will include our Fund Manager working with partners such as mortgage banks, estate agents, valuers and property managers to enhance and maximise value while mitigating risk for investors.

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