Property Partner has returned average 7.2% pa. since launch, but reveals London divide

By Oliver Smith on 9th April 2019


Profits are being weighed down by London's lagging growth.

Property Partner has returned average 7.2% pa. since launch, but reveals London divide
Image source: Robert Weaver/Property Partner

Since 2015 over 13,000 investors have bought equity in UK property via Property Partner, today the platform boasted that its average annual return had reached 7.2%.

However, in the last year that return has been almost entirely supported by growth outside London, with property in the capital averaging growth of just 0.8%.

“Despite weakness in the London market, our investments in commuter and northern towns have performed well, as have our investments in student accommodation,” said Rob Weaver, Property Partner’s chief investment officer.

“I’m pleased that we can report solid returns for investors in this challenging environment.”

Outside of London returns over the past 12 months have totalled 6.7%.

Since launch the platforms total returns, based on an independent RICS valuation, have been split between capital growth (2.8%) and dividends (4.3%).

"Markets have continued to diverge regionally since the EU referendum, with prices now weakening in some areas of London and transaction levels dropping materially," the company said in its annual portfolio update.

Since the referendum Property Partner has been focusing on higher yielding areas outside of London, as well as purpose-built student accommodation.


Alternative Income Forum 2019

Join AltFi for its third annual Alternative Income Forum, exploring closed-ended funds (investment trusts) specialising in generating an income using alternative assets such as specialist finance, P2P lending, direct lending, asset leasing and more. Hear from the leading investors and fund managers in this rapidly growing market.

19th June 2019