Property fund boosted by resurgent market

The technical sales manager for property investment firm Hearthstone Investments said it had received an increasing amount of interest for its £27.7m TM Hearthstone UK Residential Fund.

The fund invests in private rented sector housing under assured shorthold tenancy agreements and corporate lets.

Mr Gaspar said: “The evolution of residential property as a bona fide asset class for investors will continue. It’s a long-term investment with low volatility and the upturn in fortunes of the property market is definitely helping the fund.”

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He cautioned against fears of an overheating market and a potential property bubble.

He said: “The scrapping of Funding for Lending may affect the market but it’s too early to tell. However when you look outside London there is certainly no bubble and that’s a good thing. What the property market needs is sensible and sustainable growth.”

The fund was launched in July 2012 and has delivered trailing year-to-date returns of 4.03 per cent, according to Morningstar.

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Raj Shah, principal of Sheffield-based Blue Wealth Management, said: “I have considered UK residential funds but prefer global commercial property funds as they offer more diversification compared to the narrower scope of residential, especially given the end of Funding for Lending. However that could also have a positive effect on small businesses.”