31 August Interim Replace | Property Companion Weblog

On 29 July 2022, we introduced our newest quarterly portfolio efficiency, together with up to date monetary info on all properties, dividend modifications, EPC scores, and so on. Learn the total announcement right here.

On 31 October 2022, we are going to announce our subsequent quarterly portfolio replace, for the interval to 30 September 2022. The resale market will probably be closed from 10am that day till 10am, 3 November 2022.

This interim replace offers an outline of exercise throughout August, however doesn’t embrace property-specific info.

Market Outlook

The Shopper Costs Index (CPI) rose by 10.1% within the 12 months to July 2022. Inflation is now predicted to achieve stratospheric heights, with Citigroup predicting it’ll hit 18.6% in January 2023 and Goldman Sachs 22.4% additionally in early 2023 if gasoline costs stay elevated. Monetary markets replicate that the Financial institution of England might double official rates of interest by Could 2023 to over 4%, with some arguing that it might want to go greater.

Lowering publicity to rising rates of interest

As mortgage rates of interest rise considerably and mortgage refinance turns into uneconomic, we’re persevering with our programme of promoting items and utilizing these funds to repay mortgages. The place a property has a considerable money surplus, we’re utilizing these extra funds to cut back the mortgage; the place the mortgage has already been absolutely repaid, we are going to place extra funds in curiosity bearing time period deposits.

In August, we accomplished the sale of 9 items and repaid £1.6m of mortgages, representing 2.9% of whole mortgage worth. The loan-to-value ratio throughout the portfolio has now diminished to 48%. Our pipeline of additional disposals is well-developed for September and October, and we are going to present additional updates within the months forward. This exercise will proceed to cut back curiosity funds, improve potential dividends and cut back refinance danger.

The common whole return from discretionary gross sales of items now stands at 28% — shoppers can see the total efficiency of all gross sales by way of our promoting file.

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