The Portfolio Product has proven very popular with investors especially the quarterly income version. It is also an excellent way for the company to fund progress so my expectation is that there will be further releases. The reason it is released in tranches rather than open ended is to enable the development team to adjust according to interest rates and market conditions. I was pleasantly surprised that ROI for Phase6 is still high all be it lower than Phase5 however my belief is that if there is a Phase7 the ROI will reflect the lower interest rates currently in the marketplace and the fact that operating costs have increased. In the following information you will see that the developer has already advised that fixed returns are likely to reduce.
| Term Options | |
| Name: | One Year - Income |
| Annual Rate of Return: | 8.75% |
| Payments Made: | Quarterly |
| Term Options | |
| Name: | One Year - Growth |
| Annual Rate of Return: | 9.7% |
| Payments Made: | End of Term |
| Term Options | |
| Name: | Three Year - Income |
| Annual Rate of Return: | 11.75% |
| Payments Made: | Quarterly |
| Term Options | |
| Name: | Three Year - Growth |
| Annual Rate of Return: | 13.75% |
| Payments Made: | End of Term |
| Term Options | |
| Name: | Five Year - Income |
| Annual Rate of Return: | 12.75% |
| Payments Made: | Quarterly |
| Term Options | |
| Name: | Five Year - Growth |
| Annual Rate of Return: | 15.75% |
| Payments Made: | End of Term |
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Opportunity
Thank you for your interest in our unique portfolio-focused opportunity. The Portfolio Product has been created with the aim to maximise investors’ returns through the certainty of a fixed return on a range of beautiful development projects fuelling the UK’s vibrant property market.
Allowing investors to choose from an income or capital growth on their invested capital, the Portfolio Product offers a variety of options for short-term or long-term flexible investment opportunities.
Over the last 27 years, the development company has grown to become one of the leading housebuilders in the South West, with regional offices in London, Cardiff, Newquay, Bristol and Exeter.
When it comes to acquiring sites in attractive locations and sensitively developing them, both to maximise their potential and meet the needs of the local community, our track record is second-to-none. We are looking forward to sharing our success with you.
Potential Bank of England Interest Rate Cut: What It Means for Property Investors
The Bank of England (BoE) is expected to announce a cut to its base interest rate in December. This anticipated move comes amid a shifting economic landscape shaped by recent fiscal policies and economic indicators. Here's what this could mean for property investors.
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Recent data has shown signs of easing inflationary pressures, a key factor behind the BoE's decision. According to iNews, inflation rates have dipped below the BoE's target of 2%, with the latest figures showing a fall to 1.7% in September. This marks the first time since 2021 that inflation has been under control, primarily due to decreasing airfares and fuel prices.
Wage growth has also moderated, as highlighted by City A.M., with average pay growth excluding bonuses slowing to 4.9%—the lowest in two years. This reduction in wage inflation further supports the case for a rate cut, as it eases one of the pressures the BoE typically monitors when making monetary policy decisions.
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The BoE's decision is also influenced by the fiscal measures introduced in Chancellor Rachel Reeves' recent Budget. As noted by Financial Times, the Budget includes nearly £70 billion in additional annual spending, financed through tax hikes and increased borrowing. The Office for Budget Responsibility (OBR) has warned that this fiscal expansion could lead to higher inflationary pressures, which might limit the extent of future rate cuts.
The BoE's cautious approach reflects concerns about balancing the need to stimulate economic activity with the risk of reigniting inflation. This complex dynamic suggests that while a rate cut in November is likely, further reductions might proceed at a slower pace.
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For property investors, a lower base rate typically translates to reduced mortgage costs, making traditional property investment somewhat more attractive. However, the Budget introduced an increase in the additional stamp duty surcharge for second homes, rising from 3% to 5%. This policy aims to curb speculative investment in the housing market, potentially impacting the buy-to-let sector.
According to iNews, while lower interest rates can boost demand for property, the increased stamp duty could discourage second-home buyers and buy-to-let investors. This may result in reduced competition for first-time buyers and those purchasing primary residences. However, it could also exacerbate the rental market's challenges, with fewer properties available for rent, potentially driving up rental prices.
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The anticipated rate cut presents a mix of opportunities for property investors. Lower borrowing costs can enhance investment returns by making it cheaper for banks to lend housebuilders money for development projects.
For our developer, our fixed-rate product investors can continue to benefit from fixed returns, while those in our latest tranches are benefiting from some of the most favorable rates we've offered. With lower financing costs, our site-specific projects and profit share models are projected to potentially yield higher profitability. Consequently, should the rate cut happen tomorrow, we’ll plan to adjust our rates for future fixed return investments to align with the reduced base rates.
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The Bank of England's expected rate cut on 7th November signals a response to easing inflation and moderated wage growth. However, the fiscal measures from the recent Budget, such as increased public spending and higher stamp duties, complicate the outlook for property investors. Keeping abreast of these developments is crucial for investors navigating the evolving property market landscape.
If you are a certified investor interested in investing with in this development, please register on our platform to discover the various property development investment opportunities we have available.
UK Autumn Budget 2024: UK Property Market Changes
Explore the UK Autumn Budget and its impact on property taxes. Discover what these changes mean for property investors and alternative investment options.
Today’s Autumn 2024 Budget from Rachel Reeves, Labour’s Shadow Chancellor of the Exchequer, has introduced significant changes impacting the property market, specifically targeting buy-to-let and holiday property investors. These changes, which are aimed at creating a more balanced housing market, include tax increases and funding boosts, as well as adjustments to social housing regulations. Here’s what property investors and landlords need to know. Below we dive into a few of these changes.
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The Chancellor of the Exchequer announced that Stamp Duty on second homes and buy-to-let properties will rise from three to five percent from tomorrow. Additionally, the Budget made no mention of freezing Stamp Duty thresholds, which means these scheduled increases for homebuyers will take effect from the end of March 2025, potentially impacting purchasing decisions and housing affordability in the coming years.
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To tackle the wider housing affordability crisis, the budget has allocated an additional £500 million for housebuilding across the UK. This funding increase will raise the Affordable Homes Programme to £3.1 billion, providing essential support and guarantees to boost housing supply. It includes £3 billion specifically aimed at assisting small housebuilders and encouraging more sustainable development practices, ensuring that affordable housing projects can be pursued across regions with the greatest need.
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The budget also included an increase to Capital Gains Tax (CGT), a tax applied to profits from selling assets such as a second home or investments, including shares. Specifically, the lower rate of CGT will increase from 10% to 18%, while the higher rate will rise from 20% to 24%. However, the tax rates for residential property transactions will remain at 18% for the lower rate and 24% for the higher rate, providing consistency for property investors but signaling a shift for other asset sellers.
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The 2024 Autumn Budget presents both challenges and opportunities for property investors. The increased tax burden, from higher stamp duty rates on additional properties to elevated capital gains taxes, signals a move toward rebalancing the housing market and potentially moderating the expansion of the buy-to-let sector. For traditional landlords, these measures could mean re-evaluating the viability of current and future investments.
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The added costs of traditional property investments under the new budget have made alternative investments, like those offered by our developer, increasingly attractive. With a commitment to sustainable and community-oriented development, our developer provides structured property investment options without the operational challenges associated with direct property ownership.
