London

Own a stake in desirable homes in London

London is one of the true global megacities — cosmopolitan, hugely desirable as a place to live and work, and host to a rapidly growing population.

This fund allows you to gain exposure to a portfolio of expertly-chosen properties across London. The fund seeks to maximise returns and achieve rental growth through smart property selection and efficient asset management.

Properties

Photo Address Value Net yield Beds/Baths Status
Ferndale Road, Clapham £400,000 2.8% 1 bed, 1 bath Acquired July 2017
Cheshire Street, Shoreditch £420,000 2.6% 1 bed, 1 bath DD
Gordon Road, Peckham £390,000 2.7% 2 bed, 1 bath DD

The market

London property market

The high cost of buying a home in the London housing market continues to drive demand for properties to rent, particularly amongst young professionals.

 

Historically, house prices have grown very quickly: 9% per year over the past 20 years, meaning the average first time buyer’s deposit is now over £100,000 (source: Halifax). The gap between the number of homes we need and the number we are building is significant. As such, there is potential for strong returns through rental income and capital growth, particularly for ‘mainstream’ properties — the focus of our London fund.

London is not just one housing market — it is made up of many smaller markets, from Knightsbridge to Stratford, Finsbury Park to Wimbledon. With a range of regeneration activity underway, as well as planned infrastructure upgrades (Crossrail, the Northern Line extension and many others), it’s certain that the landscape will continue to evolve. In this environment, we believe it’s important that investors can benefit from exposure to London property with Bricklane.com, as well as our constant analysis of trends and movements in the market.

Our approach

The Bricklane.com London fund invests in attractive homes across London. In order to deliver the best return for you as an investor, it targets properties that appeal to a wide range of tenants, and which exhibit strong rental and sales demand.

 

Specifically, we target properties which meet our yield, quality and historical performance criteria, with good transport links, typically priced between £400k and £850k. This excludes investments in “prime” property, i.e. the top 5% by price, which tends to behave differently to the section of the market most relevant to our investors.

Our approach combines quantitative, proprietary data analytics with in depth market knowledge and insight, all overseen by an advisory team with over 100 years combined experience in the property industry.

We believe that individually selected mainstream properties provide the best chance of outperformance in normal market conditions and of resilience during any periods of volatility.

Bricklane.com’s management team are all personally invested in each of the funds we operate. This means that our own money goes into each of the properties we buy - ensuring our incentives are fully aligned with all our customers.

A better deal for tenants

Once properties have been purchased we are focused on managing them effectively and efficiently. This is not simply about keeping properties occupied: we understand the importance of the tenants feeling at home, and believe that happy tenants generate the best returns for our investors. We have partnered with Touchstone, a leading property manager, to ensure that tenants get a great experience and that the costs deducted from rental income are kept to a minimum.

Performance

Bricklane.com investments earn returns through rental income, as well as property value changes. Properties are independently valued every month.

9.2%
Per year
Total return over the past 5 years* Simulated performance. Learn more.
Returns are derived from
1.6% Current net rental income
&
Price growth Property value changes1
  1. On top of rental income, your investment earns property value changes. Since there is no certainty over what house prices will do in the future, we do not make predictions or promises to our customers.

    If, in exceptional circumstances, there is ever a shortage of buyers for your shares, you will have the option of waiting for a buyer to sell at market value, or offering them at a discount to incoming investors to sell them faster.

This calculation(*) is a simulated historical performance. Bricklane.com calculations based on the following assumptions: Investment applied evenly throughout London. House price growth based on Hometrack Cities Index, accessed 29/07/2017. Net rental income based on estimated average rental yields across current Bricklane.com portfolio. Assumes all investments are held in an ISA, fund receiving REIT status, and normal Bricklane.com fees apply.

Past performance and forecasts are not reliable indicators of future performance. Net yields represent an estimated 5-year average rental yield, net of property costs, fees and taxes.

Actual yield performance may be higher or lower. Tax rules apply and may change in future.

Launch offer: Half-price platform fee (1%) on investments in our new London fund

To qualify, sign up and invest in the London fund. Limited time only. Terms apply.

Our advantage

Using sophisticated data analytics the team at Bricklane.com evaluates all properties coming onto the market in our target areas, every day.

We are able to rapidly filter hundreds of listings to identify what we believe to be the top fraction of eligible properties, before conducting detailed due-diligence to confirm valuation, quality and fit with our broader portfolio. Our ability to identify, assess and offer on attractive properties rapidly is central to producing superior and sustainable returns for our funds.

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All our properties are valued independently every month by Allsop LLP, a leading consultancy to the residential property industry, to give you the reassurance you that the performance of your investment is verified by industry experts.

Our strategy is shaped in conjunction with leading experts from the real estate industry, with over 100 years of experience and tens of billions of pounds worth of transactions under their belts. Learn more

How to invest

Register with us, and complete the sign up process (this takes about 5 minutes).

After signup, you can choose whether you want to invest in just London, just Regional Capitals, or split your investment equally.

You can make further investments in either City, or adjust your monthly contributions, whenever you like, from within your Bricklane.com Dashboard.

How to choose your city on Bricklane.com
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Valuations

The value of your investments is based on an independent valuation of the portfolio as a whole by Allsop LLP. Individual property valuations are estimates and given for informational purposes only.

Investment objective and policy information

The fund's investment objective and policy is stated in its Prospectus and is also outlined below.

Investment objective

The investment objective of the Company is to provide Shareholders with regular and sustainable long term dividends coupled with the potential for capital appreciation over the medium to long term.

Investment policy

The Company intends to meet its investment objective by purchasing and then letting, to the extent not already let, a portfolio of residential properties in key locations within London (and areas commutable to London), where the Directors believe the income and value potential is greatest.

 

Consistent with its investment objective, it will aim to identify properties which are expected to achieve rental yields and long-term house price growth at an average or above average level for the region. In researching properties and the associated risk, the Investment Adviser will consider factors such as location, property type, demand indicators, and physical and environmental factors.

The Company will acquire both houses and flats, which will be both new build and existing properties. Where appropriate, discounts will be sought on purchases that mitigate or eliminate the transactional costs of investment or provide an element of additional performance.

The Company will maintain a let Investment Portfolio, but it will not aim to reflect the London housing market at large, including geographic mix. The Company will specifically avoid exposure to prime property and rural areas. Attention will also be given to maintain appropriate diversification and a prudent spread of risk at all times. Initially the Company intends to focus investment in London, and this may extend to areas commutable to London in the future.

Properties will generally be let on an assured shorthold tenancy (“AST”) basis. Where opportunities arise and fit with the Company’s investment objective, units may be let on a ‘part sale, part rent’ basis, or let to specialist operators for use as serviced apartments, or units obtained from residential developers on a sale and leaseback basis. Properties subject to non-AST leases will be managed to ensure that the Company is not unduly exposed to counterparty or liquidity risk.

Capital at risk

As with all investments, the value of your Bricklane.com investments can decrease as well as increase. It could take the time it takes to sell a property, or longer, to get your money back at an acceptable price.

Rental yields and dividends may be lower than estimated.

A Stocks and Shares ISA may not be right for everyone and tax rules may change in the future. If you are unsure if an ISA is the right choice for you, please seek independent financial advice.