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]
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