Our Q2 2023 Update

19 July 2023

Q2 has certainly been a busy time with visits all over the UK (Surrey, London, Kent, Birmingham, Northampton and Bristol) meeting with developers to scope out our next investment opportunities, while several existing projects are almost ready.

Projects due to complete

We have several key projects nearing completion with preferential pricing having been locked in for clients 12-18 months ago. For instance, the new Breakwaters development of large five-bedroom townhouses on the beachfront at Sandown, Isle of Wight, aimed at family holiday let bookings, will be ready in Q3 2023.

Looking ahead to Q4 completions, there’s Albion Yard in Redhill, Surrey – a well-connected London commuter investment appealing to the young professional rental sector; One Pentire, Newquay – a luxury, design-led project overlooking Fistral beach for long term or short let rentals, and Rooksmoor Mills – three-bedroom townhouses in the Cotswolds, adjacent to the AONB, which are also for long term and short let rentals.

Interest rates: what lies ahead?
How is lending affected?

At the end of Q1, the Bank of England base interest rate was at 4.25%. Two rate increases in Q2 brought it up to 5% (the last increase being half a percentage point on June 22nd).

Although the base rate plays a key role in determining mortgage pricing, there are also two other main factors: five-year Sonia swap rates (how the market expects central bank interest rates to move), and internal targets and competitor pricing.

Although the base rate increased earlier this year, lending rates dropped: this was due to a combination of these other two key factors. The market’s expectations of where interest rates will go changes constantly in tandem with lenders trying to undercut their competitors to win market share. Lenders have decreased their margins considerably over the rate rise cycle and will continue doing so to win new business.

Looking forward:
We will keep an eye on base rate movements and key economic data (e.g. inflation) that influences this. However, it’s equally important to monitor new lending products entering the market that aren’t necessarily moving at the same time as interest rates.

Chertsey, Surrey 

We’re delighted to announce an exclusive off-market investment opportunity of 16 one- and two-bed apartments in the London commuter belt. Located a five-minute drive from Weybridge and Woking train stations, with excellent access into London (28 minutes to London Waterloo), and with major employers nearby such as Samsung, Proctor & Gamble, Sony and an NHS Hospital, the site is particularly appealing to young professionals looking to rent in the area.

Looking forward:
This off-plan site, due to complete in Q4 2024, gives buyers an excellent opportunity to secure early entry pricing. This project is yet to be released and we will share further details very soon.

Please get in touch with the team to discuss our new property investments.  

 
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