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Contact Us


New Barn

Manor Farm Courtyard

Southam Lane




GL52 3PB

Phone: +44 (0)1242 514563

© 2018 by HDA Chartered Financial Planners

The Financial Ombudsman Service is available to sort out individual complaints that clients and financial services businesses aren't able to resolve themselves. To contact the Financial Ombudsman Service please visit www.financial-ombudsman.org.uk.

HDA is the trading name of Hugh Davies Associates Limited which is authorised and regulated by the Financial Conduct Authority (Firm no. 125569). Registered in England No. 1998413.   Registered Office New Barn, Manor Farm Courtyard, Southam Lane, Southam, Cheltenham, GL52 3PB.  Telephone: 01242 514563

Property Investment

The UK has had a long running love affair with property.  The desire to own rather than rent our own home appears embedded within our culture.  And why not?  Over the years property prices have delivered returns comfortably ahead of inflation.  Booming house prices in the 1990’s have prompted many people to buy multiple residential properties as an alternative to pensions or ISAs or other investments.


At HDA we believe that bricks and mortar investment has a place in a well-diversified portfolio but we also recommend a degree of caution.  The “buy to let” boom has fuelled house price inflation and there is no guarantee that values will rise at the same rate as in the past.  Like shares, property prices do actually fall as well as rise.


Key issues to consider when investing in property are as follows:


  • Initial costs may be high (Valuation fees, Surveyor’s fees, Legal fees, Stamp Duty)

  • Unreliable tenants or rental voids will reduce the income yield

  • Managing an investment property yourself can be stressful and time consuming

  • Letting agents reduce some of the “hassle” but at a cost

  • Property is illiquid and you may not be able to sell quickly

  • You cannot know the “value” of a property until you find a willing buyer

  • Interest on borrowings is only tax deductible at the basic rate of income tax

  • Profits on sale will be usually be assessable for Capital Gains Tax


Investment in commercial property is often achieved via collective investment funds but investors may also wish to consider the direct purchases of shops, retail units, offices or warehouses.  Such purchases are often made using Self-Invested Pension Plans.  It is essential to take expert advice particularly where commercial leases are involved.


Another alternative is to consider “syndicated” property investment.  Firms (usually Chartered Surveyors) with considerable experience of commercial property transactions will source attractive investment propositions and offer them to multiple individual investors on a pooled basis.  The potential returns are often very attractive but there are risks involved.  Investors should always take professional financial and legal advice.


At HDA we are able to offer advice on the financial implications of property investment and introduce you to property and legal professionals with the relevant experience to be able to help you.