Below you will find our Q4 2024 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 Wednesday 5 February 2025.
Important upcoming dates
| 3 February | Ongoing Unit Sale Votes and Blocklisting end |
| 5 February | LHX Exchange reopens for trading (10am) Dividends for the month of January paid Unit schedule updated to 31 January 2025 |
| 28 February | February 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
Despite the seasonal impact of the festive period, the property team have sold 25 units in Q4 2024, amounting to £4.0m in property value. As a consequence £1.9 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. Burns Street, Leicester), with the team working hard to progress these sales to conclusion.
Following feedback we received from investors, we have provided additional options to download documents required for reporting, and now investors can download a timestamped Statement of Holdings, alongside Tax Statements for any defined period and account transaction history. This can be found in the “Investor Docs” section of the Dashboard, navigated using the left hand menu.
We successfully launched our new bridging finance investment offering paying 10% p.a. at the end of 2024. The fundraise was completed very shortly after launch and feedback from investors on the new product was positive. We are planning on launching further offerings in 2025 – 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 (31 January 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 5 February 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 December 2024.
Residential portfolio unit status
The table below gives a summary of unit status by category across the residential portfolio at 31 December 2024. 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.
| Residential unit status | 31 March 2023 | 30 June 2023 | 30 Sept 2023 | 31 Dec 2023 | 31 March 2024 | 30 June 2024 | 30 Sept 2024 | 31 Dec 2024 |
| Let | 336 | 308 | 267 | 252 | 224 | 204 | 182 | 167 |
| To let (vacant) | 10 | 4 | 7 | 6 | 5 | 4 | 6 | 2 |
| For sale (vacant) | 52 | 54 | 79 | 49 | 49 | 53 | 46 | 52 |
| Under offer (vacant) | 44 | 60 | 53 | 77 | 81 | 76 | 76 | 64 |
| Total current units | 442 | 426 | 406 | 384 | 359 | 337 | 310 | 285 |
| Sold | 86 | 102 | 122 | 144 | 169 | 191 | 218 | 243 |
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 3.01% in the 12 months to the end of December 2024. 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 Q4 2024, amounting to £4.0m in property value. Across these completed unit sales, sales prices were on average 9.6% below their vacant possession value (VPV) and 1.1% above their purchase price. Of the residential units sold in this quarter, 18% were London flats, which sold on average 6.1% below purchase price, with the remaining 82% being regional properties, which sold for 2.8% above purchase price.
We expect an increased number of transactions in the first quarter of 2025 as buyers attempt to complete prior to the SDLT threshold reverting back to 2022 levels and the reduction in First-Time Buyer Relief, both in April 2025.
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 8.1%, 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 £1.9 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 January 2025 will be paid 5 February.
4. LHX Mortgage Bonds
Following recent unit sales in Mortgage Bond properties during Q4 2024, there has been the partial repayment of capital and interest in two bonds and full repayment of another:
- Dutch Quarter Mortgage Bond: Following the completion of the sale of Flat 38, 38% of the Mortgage Bond was repaid with interest in November. The outstanding 62% of the Mortgage Bond remains in place (secured via first legal charge), with bond investors continuing to accrue interest at a current rate of 8.75% p.a.
- Queen Street Mortgage Bond: Following the completion of the sales of Flat 1 and 3, a total of 59% of the Mortgage Bond was repaid with interest in November in two distributions accounting for the two sales. The outstanding 41% of the Mortgage Bond remains in place (secured via first legal charge), with bond investors continuing to accrue interest at a current rate of 7.50% p.a.
- Devonshire Place Mortgage Bond: Following the completion of the sales of both the Ground and 1st Floor Flats, the Mortgage Bond was fully repaid with interest in December. Bondholders achieved a total return of 6.56% on the amount repaid, equivalent to an interest rate of 8.23% p.a. accounting for changes in the Base Rate over the bond’s 291 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 6 February 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 |
| Hammonds Landing, Sowerby Bridge* | 7.75% |
| Queen Street, Sheffield* | 7.50% |
| Spencer Parade, Northampton* | 7.70% |
| Dutch Quarter II, Colchester* | 8.75% |
| Flats 7 & 9 Anchor Point, Surrey Quays* | 8.75% |
| 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
Voting closes at 11am 3 February.
Your Dashboard, sets out those properties in which you are a shareholder with ongoing votes.
Ongoing blocklisting
Ramsay Place, Aberdeen: Shareholders have voted to sell 33.9% of shares, with a value of £417,255. This amount is now available for investment to all clients through a block listing until 11am, Monday 3 February.
Completed unit sale votes
Verney Street, Exeter: A 85% majority of votes were cast in favour of accepting the offer of £2,850,000 for the block and our property team is working to progress this to completion.
Chadwick Road, Langley: A 72% majority of votes were cast in favour of accepting the offer of £207,000 for unit 56 and our property team is working to progress this to completion.
6. Members Voluntary Liquidations (MVLs)
- Station Road, Sutton: The Company’s closing accounts were finalised and the company was placed into members’ voluntary (solvent) liquidation on 29 November and a cash distribution has been made as a capital distribution to all shareholders.
Upcoming:
- Blanchmans Road, Warlingham: Following the sale of the last remaining units the Company’s accounts are being finalised as part of the Members Voluntary Liquidation (MVL) process. The Liquidator will authorise a cash distribution to the legal holder of shares once this process completes. This is expected to occur next week.
- Devonshire Place, Brighton: Following the sale of the last remaining units the Company’s accounts are being finalised as part of the Members Voluntary Liquidation (MVL) process. The Liquidator will authorise a cash distribution to the legal holder of shares once this process completes. This is expected to occur no later than the end of February.
Further information on the MVL process can be found here.
7. Property development loans
Proseed is working on providing up-to-date information regarding each outstanding development and as soon as any information is forthcoming an update will be provided to investors, with email confirmation once available.
You can find the information on the outstanding loans on their respective investment pages here.
8. Properties with fire safety issues
The UK-wide fire safety scandal continues. We are working to help resolve outstanding 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
30 April 2025 – market closed from 10 am that day until 10 am, 5 May 2025
31 July 2025 – market closed from 10 am that day until 10 am, 5 August 2025
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If you have questions about these announcements, please email us at support@londonhouseexchange.com
Best wishes,
The LHX team