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31 August Interim Replace | Property Accomplice 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 rankings, and so on. Learn the complete announcement right here.

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

This interim replace supplies 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 is going to hit 18.6% in January 2023 and Goldman Sachs 22.4% additionally in early 2023 if gasoline costs stay elevated. Monetary markets mirror 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 larger.

Decreasing 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 totally repaid, we’ll 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 complete mortgage worth. The loan-to-value ratio throughout the portfolio has now lowered to 48%. Our pipeline of additional disposals is well-developed for September and October, and we’ll present additional updates within the months forward. This exercise will proceed to cut back curiosity funds, improve potential dividends and cut back refinance threat.

The typical complete return from discretionary gross sales of items now stands at 28% — purchasers can see the complete efficiency of all gross sales through our promoting document.

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