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UK residential property Nov 2009. Contents. Long term trends The recession Recovery Our approach. Edinburgh. London. 70%+ of the world’s oil. 70%+ of the world’s bagpipes. The ethical, green, UK student fund. The worlds largest festival. 1,000 Castles. A bit about Scotland….
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UK residential property Nov 2009
Contents Long term trends The recession Recovery Our approach
Edinburgh London 70%+ of the world’s oil 70%+ of the world’s bagpipes The ethical, green, UK student fund
The worlds largest festival 1,000 Castles A bit about Scotland… 700 islands 500 golf courses Europe’s 3rd largest financial centre
UK property Nottingham Newcastle Manchester Edinburgh Dundee Glasgow Bristol Liverpool
Long term trends – ownership. • Residential: • The rental market remains small • The Gov. aims to encourage its growth
Long term trends – size and ownership. Residential a very large asset class, with low UK Institutional participation
Long term trends – residential performance Above: Residential consistently outperforms other asset classes Below:Residential has been less volatile in a downturn UK asset performance to December 2008
Long term trends – price growth. Residential: London and UK move in the same way Source: Halifax and Government
Residential: Long term stable growth and low volatility Long term trends – price growth. Source: Halifax and Government
Recession – overall impact (peak to trough) Gm Residential -11% -15% All Residential Property -40% Shares -45% Commercial Property
Recession – city by city performance Gm has outperformed the market by 30%
Recession – recent price trends Prices have risen for 7 consecutive months
Recession– a positive impact on the student rental market • Large / growing student market • 175,000 students turned away! • Shortage of student housing +10%
Recovery – 4 stages ‘House prices have risen for the past 7 months’ – Nationwide
What we do • ‘One stop solution’ • Source • Renovate • Furnish • Let / manage Private Clients Property funds We outperform the market by 30%
About Grant Management Worldwide client base 12 UK cities £500m / 1,850 prop. under man. Lloyds BankingGroup own 20% ARLA members / code of practice
Traditional over new build? Shortage of supply Better locations Higher yields Gross Yields 7% 4% 2%
How we add value Buying well • Price, location • Investment model Renovations • On time – 8 weeks • On budget - fixed price Management • Safety/ compliance • Occupancy – 95%
BeforeAfterDiff. Value £215k £250k + £35K Rent pcm£788 £1,400 + £612 Yield 4.4% 7.6% + 72% Case Study – adding value 2 (MD) Summerhall Square, Newington, Edinburgh, EH9 1QD Bought: Mar 2009 Renovation Costs: £32,475
The student market • Large university cities • Secure income (Joint leases/guarantors) • Universities “recession proof” Around 75% of our properties are let to students
Residential is a good asset class Gm offers a great solution for private clients and funds Student Market is large and growing Great time to buy Summary
To help new clients to enter the market To build partnerships To partner fund managers and sovereign wealth funds Our aims Castles Funds Banks
Long term trends The recession Recovery Our approach
Golf 10 second tour of scotland Castles Monsters