Our six property themes
UK property is ripe with opportunity – and a great variety of it. Property Partner was founded to make it easier for anyone to take advantage of these diverse and exciting opportunities.
Now, we’re introducing property themes to make it easy for you to select your investments, whether you’re looking to specialise in a certain kind of property, or you’d prefer a more varied portfolio. However you choose to invest, you can rest assured that all of the properties we offer for investment are hand-picked by our Director of Property, Robert Weaver, to deliver both capital returns and regular rental income.
Here are the six themes of property investment that you could benefit from:
Crossrail is Europe’s largest construction project, spanning 40 stations and bringing formerly inaccessible areas within easy commuting distance of London’s Canary Wharf, Paddington and Liverpool Street. Crossrail is forecast to have a significant impact on the property market, placing upward pressure on capital values and rent. In fact, for areas within 750m of Crossrail stations, JLL forecast 34% to 54 % capital growth and 22% to 38% rental growth from the end of 2014 to the end of 2020.
2. Commuter Belt
London’s growing population requires an additional 40,000 households a year, however over the past 30 years just 25,000 new homes a year have been built. At the same time foreign investors are continually attracted to London property. These two forces are pushing an increasing number of people out of the city, driving up property prices and rental values in key commuter belt areas. This trend is growing with 26% of sales in the ‘major wealth corridors’ to commuters in 2014, up from 21% the previous year. Major infrastructure projects, including HS2, Crossrail 2 and the new bridge at Thamesmead, will shorten commuting times and make these areas significantly more attractive.
3. Regeneration areas
Regeneration areas are transformed through public and private investment, increasing local GDP and house prices. The investment can improve infrastructure, high streets, parks and other open spaces. The creation of major service or employment hubs can also have regenerative effects. New airport runways and new shopping centres, for example, can create huge numbers of new jobs. This in turn has a positive effect on local GDP, rent, and capital growth, as employees seek to live nearby.
Another regeneration effect is that of ‘gentrification’. Areas from a low base suddenly become popular because of their convenience as a location, and because of demand ‘overspill’ from more expensive areas nearby.
There are many purchasing opportunities that are highly attractive, but can prove too difficult for most buyers to take advantage of. They may require specialist, or deep market knowledge, or just a certain level of buying power. Short leaseholds, life tenancies or legally complicated terms can make a property difficult to mortgage – and provide good deals for cash buyers who are able to buy in these situations. These opportunities are not only rare, but cater to a very restricted market, and offer enhanced income and capital growth as a result of their potentially lower purchase price. Property Partner has the long-standing industry knowledge and the collective buying power to take advantage of these kinds of opportunities, allowing our investors to access these specialist properties simply, and without the stress.
London is one of the most attractive cities in the world for property investment, with a world-leading economy, a stable political system and a globally trusted legal system. With London property attracting significant foreign investment, and a population that is growing by over 100,000 additional residents every year, London offers excellent capital growth and rental income. Significant growth opportunities are arising due to major infrastructure upgrades and the effects of regeneration, transforming areas in and around the city. Property Partner seeks the best investment opportunities in London for our investors, always choosing areas in the capital that offer good potential for capital growth, in addition to attractive rental yield.
Gearing is essentially the use of debt (a mortgage) to part fund a property – this is attractive to many investors because it offers the opportunity to enhance returns. Debt increases both risks and rewards.
Through gearing, investors gain increased exposure to property price movements – returns outperform the market if prices rise, and underperform it if they fall. At Property Partner, we take a considered attitude when it comes to risk. We will only list multiple property units with gearing in order to reduce potential risks, as multiple units offer a more stable stream of income to support debt repayments.
The value of your investment can go down as well as up. Gross Rent and Dividends may be lower than estimated. You may have to wait until the next five year anniversary of the property’s listing on the Property Partner platform for an exit event. See Key Risks for further information. Property Partner does not provide investment advice and any general information is provided to help you make your own informed decisions. If you are unsure whether an investment is suitable for you, you should contact a financial adviser for advice. Property Partner is the trading name of London House Exchange Limited, which is authorised and regulated by the Financial Conduct Authority (firm reference number 613499).