Our current investment strategy

Deep industry knowledge

When you invest with Property Partner, you invest in properties specifically chosen by our Director of Property, Robert Weaver and his team. Robert is one of the UK’s most experienced residential property professionals and was formerly the Global Director of Residential Investment at RBS. He is a Fellow of the Royal Institute of Chartered Surveyors (RICS) and sits on the residential committee of the British Property Federation. Rob and his team have 68 years, 23,300 units and £1.54 billion experience. Meet our property team, here.
 

Selection Criteria

So what are the selection criteria and strategic decisions that provide the foundations for our supply pipeline?

  1. Quality of the property, the building itself – we visit and due diligence every property that makes it onto our platform, identifying potential pitfalls, with 100’s each month not making the grade.
  2. Past performance of the area – House Price Index (HPI)
  3. Forward looking value growth forecasts from the likes of Savills, Knight Frank and JLL.
  4. The income yield of the property and surrounding areas
  5. The strength of the local and regional economy, including wages, avoiding dependence on one large employer
  6. Investing alongside major regeneration or infrastructure projects such as Crossrail and HS2
  7. Access to relevant transport links and local amenities
  8. Diversification appeal

All properties are then signed off by our Investment Committee before they are put on our platform.
 

Current strategy

A principal benefit of residential property as an asset class is the combination of income (from monthly rent) and capital returns (from movements in the property value, that it provides). Since the EU referendum, we have focused on delivering properties with a high income return, in response to increased investor demand for yield, in the midst of an uncertain economic climate. As a result we’ve selected properties outside of London, with lower individual unit values than in the past.

Nevertheless, residential property stood resolute in the face of political and economic headwinds and the first quarter of 2017 has seen confidence return to the market, with house prices once more increasing in line with the longer term trend. The government’s office for budget responsibility recently forecasted that house prices will increase by 26% over the next five years, with rents set to grow 19% over the same period. We have responded to the change in sentiment and are busy building a pipeline of high quality assets, well placed to take advantage of price growth in the wider market, while continuing to deliver a solid income return, targeting the long run stable total return which investors have come to associate with UK residential property.

Robert and his team are also targeting new cities in the forthcoming period with the likes of Oxford, Cambridge, Bath and Bristol high on our priority list.
 

Internal lead indicators

Crucially, we pay close attention to activity on our resale market, which acts as a kind of real-time barometer for market sentiment and investor appetite. If we notice a trend in locations or types of properties that are trading strongly then we have the flexibility to respond to this.

Ultimately, we listen carefully to you, our investors, to gauge exactly what you’re looking for. We’re also careful to ensure that the properties on our platform represent a balanced overall portfolio. Sourcing a variety of high quality assets, from a wide range of locations, minimises risk and volatility and provides the platform for strong long term performance.

The depth of experience within our property team enables us to do this, providing our clients with an investment grade property portfolio beyond the scope of an individual Buy-To-Let investor.