Tag Archives: investment news

The world of UK investment, business and economics

So what’s going on in the world of UK investment, business and  economics?

UK Investment
Did you know UK investment is at a record high? Very little spread online about this. The ONS quietly released the latest figures for Gross Fixed Capital Formation (GFCF) which covers investment across the whole economy, public and private sectors, manufacturing, construction, services and extractive industries. investment grew by 1.1 per cent in the fourth quarter of 2017, to a total of £84.1 billion. This is contrary to the headlines and beliefs that investors have fled the UK following Brexit. It’s not received a lot of news but the FT (https://www.ft.com/) were one media platform that did report it. It would be extremely helpful to all concerned if the public could be fed less propagandist speculation about the future direction of UK investment and the economy, made by organisations which have already been embarrassed by the grim forecasts they made ahead of the referendum, and we got to hear rather more genuine economic news. The way forward with a balanced view.

UK Property
Punitive tax reforms, including the removal of mortgage interest relief, extra stamp duty and tighter rules around mortgage borrowing, are helping to drive landlords to exit the buy-to-let market in droves. We at Barrington Howe have noticed this trend with the number of investors looking to sell properties and invest with a hands off approach. See our buy to let guide http://bit.ly/buytoletguide. Many clients have opted for hands free higher yields with security with our UK investment products Empire Property and Godwin Developments. According to estate agent Savills, buy-to-let lending collapsed by 26pc last year, as diminished profit margins discouraged new investors from adding to their portfolios. According to research by comparison website TotallyMoney, which looked at 580,000 properties across England, Scotland, and Wales to find the areas that offer the highest buy-to-let yields, Liverpool was the most profitable locations for landlords.

UK Economy
UK Prime Minister Teresa May hints at increased taxes to fund the NHS. £20bn will be made available to the NHS over the next 5 years. How is that going to be paid? She has mentioned the public will pay. The Brexit “withdrawal bill” headed back to the House of Lords with a ‘Meaningful vote’ high on the agenda. The Government lost another vote meaning that there will be another vote in the House of Commons on Wednesday. MP’s will voting on an amendment that would give politician a “meaningful vote” on Brexit. This will mean if 21st January passes with no deal being struck Parliament should intervene to prevent the UK from “crashing out” of the EU without a deal.

Overnight, a risk off tone was maintained in the market overnight as concerns surrounding trade wars remain. The White House confirmed yesterday that the US will impose tariffs on an additional $200bn worth of Chinese goods. If we see China retaliates then it will escalate tensions further which could hinder global growth and confidence.

Later in the day, ECB President Draghi is due to speak at the ECB Forum on Central Banking. After his dovish comments last week, the market will be keen to see if he elaborates further. Looking at economic data, we are due to see the housing starts and building permits.

Germany
It is reported that the most new born babies have been born since 1997! The numbers have risen significantly for the fifth consecutive year according to the federal statistics office. So what does this mean? A major reason is the lack of affordable housing as well as not enough child care facilities!

The economic growth rate for Germany has been reduced to 2.1% slightly lower than expected. Dolphin Trust continues to go from strength to strength with further developments taking place in high growth areas in Germany. Germany still remain with a budget surplus over 36.6 billion euros! There still remains a sustainable upswing on German real estate markets thanks to the economic boom.

Whilst news is the usual up and down, our clients profits remain on the up. The average return based on client UK investment for 2018 to date is 12%.

investment news barrington howe

Investment News Dolphin Trust

Investment News
Germany and German real estate in particular is seeing a sustained growth. Dolphin Trust, one of our investment opportunities is reaping the rewards.

German Private Sector Growth Accelerates
Further investment news shows that growth in Germany’s private sector accelerated in May to hit the highest level so far this year, a survey showed today. This suggests that Europe’s largest economy will extend its surprisingly strong start to the year into the second quarter.  Click Here to Read the full story

European Real Estate Continues to Attract Investors
Investor appetite continues to grow in most European commercial markets, with Germany leading the way for the 2nd quarter in a row.  For further details CLICK HERE

German Economy Fared Well in Q1 as Trade Surplus Grows
The trade surplus is a key gauge of an economy’s comparative strength and in recent months has highlighted the robustness of Europe’s biggest economy amid the current global economic uncertainties.  For further details CLICK HERE

Dolphin Trust updates
This is the latest update on some of the current developments benefiting our Dolphin Trust clients.

The Old Cigar Factory, Fabrikweg 12, Horb
The old Cigar Factory in Horb now has a new face! In the words of the project co-ordinator, Jochen Krause of Deutsche Planbau GmbH, thanks to the fast progress of the teams at the Dolphin Trust construction site, the Cigar Factory has now had a facelift.
During refurbishment, Dolphin Trust will create nine new apartments in the old Cigar Factory and will bring new life to the government listed building, built in 1898. Despite its historic age, modern standards of energy efficiency will be achieved and high value materials will be used for all apartments for modern living comforts.

In the last few days the loggia, which is visible from the street, has been finished. The old roof section above the stairway has also been completely renewed and the attic has new flooring.  In just a few more days the ceilings of all floors will be completed.
For full details on this investment opportunity please CLICK HERE

Investment News

Investment News and Updates December 2015

Barrington Howe brings you that latest Investment News and Updates

Dolphin Trust
“Germany Second best in Europe for Residential Market “

As Dolphin Trust continues to go from strength to strength as an investment, Europe’s residential markets have become its strongest over the last decade, and the only sector to avoid negative overall performance. Germany’s total return for residential investments for 2013 stood at 8.3%, the second best in Europe, only trailing closely behind the UK. Data also shows that over the last 15 years, the German residential market has remained stable in comparison to other countries.

See the full report HERE

 

ILS Car Finance Investment
The new Buy to Let £45 billion industry

The progress of ILS Car Finance Investment progressed beyond expectations for 2015.  The number of cars under HP agreements has increased month on month as the company goes from strength to strength. The backbone to the investment is the ability to manage defaults which have risen from 2 to only 4 cars. In percentage terms that’s a mere 0.6% and all four vehicles were quickly recovered and resold giving further credence to the business model.

In order to be in a position to effectively handle the extra work from ILS planned expansion programme they have recently taken home in new, slightly larger, offices as the team expands to handle the increased business. There is also huge confidence in the continued growth of the used car market (£45.1 billion) as a whole which has been underlined further by the latest BCA report which can be found HERE
We all need cars and that’s unlikely to change for a long time.

 

UK Housing Market
New Changes and it’s affects

The Chancellor recently went on to announce the biggest boost to housebuilding since the 1970s by promising to build 400,000 new homes in England by 2020, with 200,000 of those earmarked ‘starter homes’. House builders and developers will be offered grants to facilitate this initiative and to encourage them to regenerate brownfield sites for such use.

In addition, 135,000 homes will be made available on a shared ownership basis – for those households earning less than £90,000 in London and less than £80,000 outside the capital. London residents will get their own version of Help to Buy, where for those able to submit a 5% deposit on a property, the Government will offer a loan of 40% of the value of the home, effectively giving them a 55% loan-to-value mortgage. All these initiatives will see the overall housing budget rise to more than £2bn. The big question is how will this affect the UK housing market? Builders and developers look certain to benefit from this move.

With recent changes in the stamp duty increases for a second home, there has been a bit of a panic in the buy to let market. An additional 3% increase in stamp duty for a second property. For the experienced investor, it’s merely another change in policy of which a professional investor will simply adapt to. Experience teaches you to adapt to changing conditions with alternative solutions. Overall the property market is predicted to continue to grow.

 

Manchester Property Investments: Beech Property
Increased Investment into the “Northern Powerhouse”

The first

Manchester City Centre Investment in Princess Street was completed at the start of last summer and has been tenanted for several months. After such a successful template, this is being used going forward on other city centre projects. The second development, Cross Street is due for completion early 2016. Once the building work has been completed, it will have given an iconic city centre Manchester building a much needed facelift and importantly significant longevity. At this stage, refinance will be put in place and the loan note monies passed back to the trustees enabling Beech to then use the funding for the next project.

The latest acquisition, Outram House on Great Ancoats Street, is to the north of the city centre and is in a fantastic location overlooking one of the many canals that make up Manchester’s heritage. Work on this property will commence in 2016 and we anticipate that it will be completed before the end of the year. There are several properties in city centre Manchester that have been secured for future development. On the subject of Manchester, the city’s economic future looks very healthy indeed. At the time of writing, the Bank of England has just announced their intention to keep the bank base rate at its current low until well into 2017. This spells another year of low returns for bank deposits and savings.

 

New 1 Year Secured Fixed Rate Bond
“Returns under written by the US Government”

Colonial Capital has recently announced an addition to their bond in the form of a shorter term model with a lower entry point of only £5000. This gives an opportunity to those looking for a shorter exit without having their funds tied up beyond 12 months. The same model and principle applies taking repossessed (foreclosure) properties under market value and refurbishing them to a high standard and rented to families under a US Government initiative in which they underwrite the rent. In short your returns are underwritten by the US government. The bond has gone from strength to strength and looks set to continue with a 12 month agreement. This product seems ideal for ISA investors completely outperforming them irrespective of ISAs being tax free.