Below you will find our Q1 2025 performance announcement. This includes an LHX update, updated financial information on all properties, individual unit details, property disposals, dividends and other important information for investors.
To ensure that all clients have the opportunity to consider this announcement, the Exchange will be suspended as usual, for 3 working days, re-opening at 10am on Tuesday 6 May 2025.
Important upcoming dates
| 6 May | LHX Exchange reopens for trading (10am) Dividends for the month of April paid Unit schedule updated to 30 April 2025 |
| 30 May | May activity update published |
Today’s announcements
1. LHX update
2. Portfolio performance
3. Dividend distributions
4. LHX Mortgage Bonds
5. Shareholder votes
6. Members Voluntary Liquidations (MVLs)
7. Property development loans
8. Properties with fire safety issues
9. Upcoming quarterly announcements
1. LHX update
The property team have sold 26 units in Q1 2025, amounting to £5.8m in property value (residential and commercial). As a consequence £1.4 million of mortgage finance was repaid across our residential portfolio during the last quarter, reducing interest costs across the portfolio, with the total portfolio mortgage loan-to-value (LTV) currently at 42%. Moreover, some of the larger student properties are now under offer (e.g. Ty Glyn, Bangor and Burns Street, Leicester), with the team working hard to progress these sales to completion.
We successfully launched our second bridging finance investment offering paying 9.50% p.a. in March. The fundraise was completed very shortly after launch and there was significant demand from investors that this raise unfortunately could not meet – we are planning on launching further offerings in the coming weeks and months – all eligible investors will be notified of the scheduled launch time and date and can find out more about the new product here: Bridging Finance Investments
As ever we value your feedback, so please do not hesitate to get in touch with us via support@londonhouseexchange.com if you have any comments or questions.
2. Portfolio performance
Today (30 April 2025) we have published updated financial information for every property, including net income, mortgage details and the net cash position. You can find this information at the top of each property’s respective investment page, in the ‘Financials’ section.
The ‘Individual Unit Details’ section, a tab within the ‘Financials’ section on each property’s investment page that provides detailed information on a unit-by-unit basis, will be updated on 6 May to reflect the latest status of every unit and contracted rent for let units. This tab is updated monthly and allows you to track sales progress for all properties voted for sale as part of their 5-year anniversary process.
All information is updated to 31 March 2025.
Residential portfolio unit status
The table below gives a summary of unit status by category across the residential portfolio at 31 March 2025. The changes exhibited over time continue to highlight the focus on selling residential units, as we seek to repay mortgages and fulfil shareholder mandates to sell properties following their 5-year anniversary votes.
| Resi status | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 |
| Let | 336 | 308 | 267 | 252 | 224 | 204 | 182 | 167 | 138 |
| To let (vacant) | 10 | 4 | 7 | 6 | 5 | 4 | 6 | 2 | 4 |
| For sale (vacant) | 52 | 54 | 79 | 49 | 49 | 53 | 46 | 52 | 45 |
| Under offer (vacant) | 44 | 60 | 53 | 77 | 81 | 76 | 76 | 64 | 73 |
| Total current units | 442 | 426 | 406 | 384 | 359 | 337 | 310 | 285 | 260 |
| Sold | 86 | 102 | 122 | 144 | 169 | 191 | 218 | 243 | 268 |
Rental performance
We have been proactively carrying out rent reviews across the portfolio, leading to improved rental performance over each of the last 12 months leading to each of the last quarterly reviews. Across 182 tenanted residential units, contracted rent grew by 2.5% in the 12 months to the end of March 2025. While we are not undertaking as many rent reviews as usual as we vacate units to sell, we are continuing to serve Section 13 notices (notice of rent increases) where possible.
Residential Unit sales
There were 25 residential unit sales completed in Q1 2025, amounting to £4.7m in property value. Across these completed unit sales, sales prices were on average 8.1% below their vacant possession value (VPV) and 7.3% above their purchase price. Of the residential units sold in this quarter, 30% were London flats, which sold on average 7.7% below purchase price, with the remaining 70% being regional properties, which sold for 15.2% above purchase price.
Clients can see the performance of agreed and completed sales in the Individual Unit Details of each property and on our Selling Record.
Mortgage debt
The average interest rate across our mortgaged portfolio stands at 8.0%, which is unaffordable for the majority of residential properties. The cost of servicing mortgage debt erodes rental income and is the primary reason for dividend suspension across the portfolio.
We are continuing to pay down mortgage debt wherever possible, predominantly through unit sales, and £1.4 million of mortgage finance was repaid across our residential portfolio during the last quarter. The total portfolio mortgage loan-to-value (LTV) is currently 42%.
3. Dividend distributions
There have been no changes to dividends distributions this quarter.
Dividends for the month of April 2025 will be paid 6 May.
4. LHX Mortgage Bonds
Earlier this month the Heritage Court Mortgage Bond completed following the successful fundraise of £457,325. The mortgage was redeemed and Bondholders began accruing 10.00% p.a. interest from 14 April.
Following recent unit sales in Mortgage Bond properties during Q1 2025, there has been the partial repayment of capital and interest in one bond and full repayment of another:
- Spencer Parade Mortgage Bond: Following the completion of the sale of Flat 1, a further 36% of the Mortgage Bond has been repaid with interest. Bondholders achieved a total return of 7.47% on the amount repaid, equivalent to the interest rate of 7.95% p.a. over the bond’s 343 day term. The outstanding 29% of the original total mortgage bond remains in place, with bond investors continuing to accrue interest at a current rate of 7.45% p.a.
- 7 & 9 Anchor Point Mortgage Bond: Following the completion of the sale of flat 9, the remaining 12% of the Mortgage Bond was fully repaid with interest in February. Bondholders achieved a total return of 15.7% on the amount repaid, equivalent to an interest rate of 9.08% p.a. accounting for changes in the Base Rate over the bond’s 632 day term.
The Mortgage Bonds and their rates are presented below, but please note the next Bank of England base rate decision is coming up on 8 May and any change to the base rate will be immediately passed directly on to bondholders, changing the per annum interest rate for each of our Mortgage Bonds:
| Property | Current p.a. return |
| Heritage Court, Dinnington | 10.00% |
| Hammonds Landing, Sowerby Bridge* | 7.50% |
| Queen Street, Sheffield* | 7.25% |
| Spencer Parade, Northampton* | 7.45% |
| Dutch Quarter II, Colchester* | 8.50% |
| Flats 7 & 9 Anchor Point, Surrey Quays | Fully repaid, with interest |
| Keogh House, Swindon | Fully repaid, with interest |
| Devonshire Place, Brighton | Fully repaid, with interest |
| Flats 15 & 25 Anchor Point, Surrey Quays | Fully repaid, with interest |
| Garden Court, West Drayton | Fully repaid, with interest |
| Jubilee Mansions, Barons Court | Fully repaid, with interest |
* Indicates partial repayment of capital with interest following unit sales.
5. Shareholder votes
Ongoing votes
There are no votes currently ongoing.
Your Dashboard, sets out those properties in which you are a shareholder with ongoing votes when live.
Completed 5-year anniversary vote
Fairholme Road, Croydon: The blocklisting phase of the 5-year anniversary process concluded on 29 April and was not fully funded by LHX investors. As a result, the property will be sold and net proceeds will be returned to all shareholders in the property. Funds invested in the block listing have been returned to those investors’ LHX accounts.
6. Members Voluntary Liquidations (MVLs)
Whitewell Road, Frome: Following the sale of the property, the Company’s closing accounts were finalised and the Company was placed into members’ voluntary (solvent) liquidation on 29 April 2025; with a cash distribution made the same day to shareholders’ LHX accounts.
Flats 4, 7 & 9 Anchor Point, London: Following the sale of the property, the Company’s closing accounts were finalised and the Company was placed into members’ voluntary (solvent) liquidation on 29 April 2025; with a cash distribution made the same day to shareholders’ LHX accounts.
Cubbington Road, Leamington Spa: Following the sale of the property, the Company’s closing accounts were finalised and the Company was placed into members’ voluntary (solvent) liquidation on 26 March 2025; with a cash distribution made the same day to shareholders’ LHX accounts.
Devonshire Place, Brighton: Following the sale of the property, the Company’s closing accounts were finalised and the Company was placed into members’ voluntary (solvent) liquidation on 26 February 2025; with a cash distribution made the same day to shareholders’ LHX accounts.
Blanchmans Road, Warlingham: Following the sale of the property, the Company’s closing accounts were finalised and the Company was placed into members’ voluntary (solvent) liquidation on 31 January 2025; with a cash distribution made to shareholders’ LHX accounts on 3 February 2025
Further information on the MVL process can be found here.
7. Property development loans
Proseed is providing updates on an ad hoc basis once information is provided to them – the most recent updates for the ongoing development loans was published 31 March 2025 and we have no further information at this time.
You can find the information on the outstanding loans on their respective investment pages here.
8. Properties with fire safety issues
We are working to help resolve outstanding fire safety issues where possible and the government is continuing to address the issues across the UK. Our power to progress the situation is limited in our capacity as a leasehold owner of a small number of flats within a larger block. However, where fire-safety issues have previously emerged and we are the freeholder we have been able to proceed to undertake the necessary works and resolve the issues.
We have 5 properties that remain impacted, with remedial works in various stages of completion – please read the latest update on each affected property’s Latest Update section:
- Premier House, Edgware
- Picture Works, Nottingham
- Hamilton House, Liverpool
- Sherringham Court, Hayes
- Vista Tower, Stevenage
9. Upcoming quarterly announcements
31 July 2025 – market closed from 10 am that day until 10 am, 5 August 2025
31 October 2025 – market closed from 10 am that day until 10 am, 5 November 2025
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If you have questions about these announcements, please email us at support@londonhouseexchange.com
Best wishes,
The LHX team