87. The UK housing market: pent-up demand and the stamp duty holiday

Stuart Springham, deputy manager of TM home investor, talks to us about a new income share class for the fund and a potential 2.4% yield. He tells us about pent-up demand in the housing market resulting in increased asking prices, how the new desire for gardens and offices may not result in a permanent change, how the stamp duty holiday may help those moving up the property ladder rather than first time buyers and how he hopes the green homes grant may start an energy-efficiency revolution.

There are quite a number of funds that invest in commercial property, but TM home investor is the only fund in the UK that invests solely in residential property. Investing in private rented sector housing across the mainland UK regions, it aims to capture UK house price growth and also provide an element of income return. It also offers a genuine diversification opportunity, as it has little or no correlation to other asset classes.

Read more about TM home investor

What’s covered in this podcast:

  • A new income share class for the fund and a potential 2.4% yield [0:24]
  • Pent-up demand in the housing market and asking prices going up [2:16]
  • How the team has worked with tenants to help them through the lockdown [5:20]
  • Why the desire for gardens and office space post-pandemic may be a priority shift rather than a long-term structural change [8:21]
  • Why the stamp duty holiday may benefit home-owners wanting to move up the property ladder rather than first time buyers [10:30]
  • How the ‘green homes grant’ could start a revolution in energy efficiency [11:25]
  • The long term outlook for the UK housing market and why institutional investors now want a piece of the action [13:33]
  • Why TM home investor looks at affordable housing for those on average salaries of £25,000, rather than expensive builds for the more affluent [15:47]
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions.Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice.Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.