TAB Talk - June 2024

UK property market shows signs of recovery with rising buyer confidence and sales activity

As we position ourselves for consolidation in the next half of 2024, June has brought a mix of strategic moves within TAB as we embrace the latest property market sentiment. On a national level, the Bank of England has held the base rate steady again at 5.25%. The industry shows signs of stabilisation, with rising buyer confidence and sales activity in many regions. TAB itself has strengthened its leadership team, appointing Samuel Leach as our new investor relations manager to foster robust investor relationships and drive strategic initiatives and we welcomed Sachi Vekaria as a financial controller.?

This month's newsletter covers Samuel's appointment, a round up of the NACFB Commercial Finance Expo, insights on ESG in lending from Simplify Climate, positive property market data, a reminder of our TAB Series product offering and a potential high-yield TAB Property investment opportunity in Worthing.?

We remain dedicated to providing innovative solutions and maximising returns for our investors, brokers and borrowers, so read on to learn more.?

Samuel Leach appointed

TAB has appointed Samuel Leach as investor relations manager. He will collaborate closely with the investor relations team to drive growth strategies, foster relationships with investors, streamline processes and facilitate new investor onboarding.

Since 2015, I have been working in one capacity or another with Samuel and he brings with him nearly 13 years of experience in personal finance. He founded Samuel and Co Trading, an award-winning financial education company teaching trading and wealth-building strategies.

Samuel's operational background and mindset are what we need to support TAB's next growth phase. We’re thrilled to have him join TAB and contribute to making real estate investment more accessible.?

NACFB Commercial Finance Expo

The NACFB Commercial Finance Expo 2024 was a whirlwind of excitement and opportunity. We're grateful to everyone who visited our stand at the NEC Birmingham on Wednesday.

The team loved meeting so many new brokers and gaining valuable insights into your expectations from lenders and?the type of deals you have in the pipeline. We also caught up with many familiar faces and strengthened our partnerships.

The hot topic of this year's show was discussing our commercial mortgage product.?Thanks for your questions and feedback on the product and keep an eye out for product updates soon!?

Positive property market data

It's encouraging to see recent positive signs in the property market. While challenges remain, there are promising developments that deserve attention. As someone who values an optimistic mindset, I'm keen to share some of the latest uplifting market data from the real estate sector this month.

• Stable property prices: Despite economic challenges, the UK property market has shown resilience. Annual property values continue to climb, with both Nationwide and Halifax reporting positive annual price growth (FineAndCountry ). This stability is encouraging for both buyers and sellers as they navigate the market.?This return to monthly growth, following two months of price falls, suggests the market has been resilient in spite of the ongoing high cost of borrowing (Savills ).
• Optimistic rental market outlook: This is particularly buoyant, with JLL forecasting a 4.5% increase in rents across the UK for 2024. This is driven by strong tenant demand and limited rental stock, which are expected to support continued rental growth (JLL ).
• Improvement in mortgage rates: There is cautious optimism about potential reductions in mortgage rates later this year. Although current rates are higher compared to a year ago, expectations of lower inflation could lead to a decrease in the Bank of England’s base rate, making mortgages more affordable and boosting the housing market further (Savills ).

TAB Series offering

With the recent launch of the TAB Series a few months ago, we're pleased to see growing interest in this scheme. This holistic solution seamlessly guides clients through every stage of their property investment journey, providing comprehensive financing options from a single, trusted lender.?

By offering a one-stop shop for property finance, we eliminate the inefficiencies associated with dealing with multiple lenders, streamlining the process and fulfilling all of your clients' lending needs.

The TAB Series works across our entire range of products, providing financial and time savings for your clients. By anticipating their evolving needs with complementary products, you can differentiate yourself as a trusted property broker, strengthening relationships and positioning yourself as their essential property investment finance partner.

If you want to learn more about the TAB Series and how it can benefit your business, we invite you to book a meeting with our sales team.

New feature: Industry voice with Simplify Climate?

This is a new feature where each month we speak to external stakeholders, friends of the business, or clients to get their insights on the lending market, finance sector, or other topical issues. This month, we spoke to Jose Hopkins from Simplify Climate as to why the property lending sector needs to integrate sustainability and environmental, social and governance (ESG).

Here's what he had to say:

"Businesses need to adapt their mindset as to how they view ESG. The integration of ESG should be seen as a competitive advantage and not just a regulatory burden. Effects of global warming are here. In the UK, we are experiencing significant changes in weather conditions (increased heat waves and flooding) which need to be understood by all businesses. These changes are becoming more frequent and severe, threatening the ability of workforces and businesses to operate normally.

Many smaller firms outside the scope of regulations will soon have to provide sustainability information to feed into the reporting of their clients or suppliers. Simplify Climate's mission is to help companies determine an initial ESG strategy and reporting baseline, we do this by an incremental and practical approach focusing on:

1. Integrating company-wide awareness training
2. Reducing reporting costs by consolidating ESG services
3. Navigating new and evolving ESG frameworks and regulation
4. Understanding the impact of changes in extreme weather conditions?and the effect on financial statement disclosures
5. Identifying operational cost-savings and optimising business models

By understanding climate impacts, joining industry communities and leveraging ESG software tools, lenders can mitigate risks, stay compliant and contribute to a more sustainable housing market for the long-term.”

At TAB, we firmly believe in embracing ESG principles for good. We understand the profound impact these practices will have in the coming decade and it's imperative that we proactively implement changes where possible. To this end, we've developed a comprehensive ESG roadmap that we review every quarter. This process ensures accountability, enabling us to track our progress against stated goals and actions. Ultimately, our roadmap aims to improve and align our operations with as many of the United Nations Sustainable Development Goals as possible. We then engage in a continuous feedback loop, consistently assessing and refining our position to drive meaningful progress.

For more insights from Jose and how ESG is going to impact the lending space, please visit the website simplifyclimate.co.uk .

TAB Property: Worthing potential investment opportunity

With the addition of Samuel to our team, we are excited to refine the TAB Property product and continue to source exciting investments for the TAB Market, we would like to gauge your interest in a potential new offering.?

TAB's prospecitve opportunity in Worthing presents a unique value-add proposition. The property has the potential to be split into three properties which would be sold individually, resulting in a breakup valuation of circa 20% higher than the initial purchase price.

Here are some key details about this potential investment:

• Mixed use freehold investment
• Overall investment amount of ?￡2.075m, including purchase price and purchase costs
• Net annual yield: 7.50%
• Strategy: split into three separate units, and sell, resulting in 20% circa of capital appreciation
• Term up to 24 months
• Estimated 35% return on capital over the life of the investment

This investment not only presents an opportunity for significant capital appreciation but also demonstrates our commitment to innovative solutions and maximising returns for our valued investors.

If you would like to express your interest and receive further information, you can join the waiting list.

I hope you all have a good month ahead,

DK

TAB. Trust. Transparency.