Performance data on property markets can be found from a number of commercial sources and is also available form the Office for National Statistics. HiP will also provide performance data related to trading of positions and shares.
The reason it is more difficult to finance a purchase or investment today is that the availability of funding has reduced. For example in 2009, according to data by the Bank of England, nearly 50% of all mortgages that banks were issuing were high loan-to-value mortgages, those above 75% of asset value. This portion of mortgages has fallen to ca 15% today, a dramatic fall, and the very high loan-to-value mortgages above 90% which accounted for ca 30% of the market are largely non-existent today. In addition, the availability of interest-only mortgages has also been significantly reduced and at the same time more stringent affordability standards and limits have been imposed. All this increases the pressure on investors, owners, and owners-to-be by systematically restricting and in many cases eliminating buyers and movers from the market.
HiP does not impose restrictions on which markets investment opportunities are offered in other than to comply with local regulatory and other requirements. Initially HiP will focus on the UK but is already in the process of expanding into other markets globally.
HiP products and solutions allow unique investment structures and allows investors to design their personal investments using similar methods applied by institutional investors. Through HiP all investors can access and design their real estate portfolios in a unique and tailored way, achieveing important diversification benefits and managing exposures.
During 2017 there were approximtely 1.22 million residential transactions in the UK, and approximately 128,000 non-residential transactions. Source: ONS
The value of privately owned residential real estate in the UK is estimated at ca £6 trillion. Source: PIA Property Data Report 2017
The UK Mortgage market alone is worth ca £1.3 trillion, with annual new lending ca £265 billion per year.
Source: Bank of England
In the UK, the largest commercial real estate sectors are Retail (38%), Offices (31%) and Industrial/Logistics (22%)
The value of commercial real estate in the UK (owner-occupied as well as invested) is estimated at circa £883bn.
Collective investment schemes and listed property companies (including REITs) are the largest domestic owners of UK investment property, accounting for 31% between them, the second largest group are overseas investors, accounting for ca 29% followed by UK insurance companies and pension funds who account for ca 16% of investment property in the UK.
Source: Property Industry Alliance, Property Data Report 2017