Morfitt's Mailshot Issue 41...          Can't see this email properly? View in browser

Morfitt & Turnbull

Issue 41   

Premier Leagues Property Own Goal!

Investing in property in a town or city with a Premier League football club has been something of an own goal over the past year, according to research conducted by online estate agent

House price growth in a Premier League town marginally trailed the UK during last season at 4.55% as opposed to 4.67% nationally. The last 25 years has seen the average UK house price increase by 302% to £220,713. Across the 20 teams playing in the top flight last season, the average house price reached £272,447, with a property within a Premier League team’s location costing around £50,000 more than the UK average.

When looking at last season’s 20 Premier League teams where local house price growth is concerned, it is Manchester United that returns to their former glory with the highest annual growth in the league at 8.58% and an average house price of £262,997.

Burnley house price growth is flying high just like the team, losing out on the top spot by the smallest of margins with prices having increased 8.57% in the last year. Despite this, Burnley is home to the most affordable property price in the league at just £77,525.
  Premier League Property

The North West also takes third place in the league with Manchester City seeing prices climb by 8.08%, Leicester flies the flag for the East Midlands with an increase of 7.76% and Brighton performing well as the best team from the south with prices up by 7.12% annually.

A tough year for the London property market means Chelsea and Arsenal are the only two teams to see annual price growth slump below 1% at 0.40%, with Newcastle in the third relegation spot at 1.39%. Despite Arsenal seeing the lowest level of price growth in the league, rivals Tottenham have seen prices increase by 4.5% in the last year, handing them the bragging rights on and off the pitch.

Elsewhere in London, West Ham’s new home at the London Stadium means they’ve enjoyed the second highest rate of growth of all the teams from the capital at 4.11%. Crystal Palace has also enjoyed better growth than both Chelsea and Arsenal at 3.46%.

Although Man City is home to the cheaper average house price, £161,611, in the Manchester derby United enjoys the higher rate of growth 8.58% to 8.08% enough to also beat bitter rivals Liverpool where annual growth is at just 3.55%.

Bournemouth and Southampton will face off in the Premier League again next season. It’s fairly close run where house price growth is concerned, with Bournemouth edging it at 5.26% in the last year to Southampton’s 4.18%.

But despite their fall from footballing grace, it’s Southampton’s traditional rivals Portsmouth, now in English football's third tier, that has enjoyed the best performance in property terms with prices having increased in the south coast town by 7.4% in the last year.

  Premier League Property
There was no Tyne-Wear derby last season after Sunderland’s relegation to Championship the season before. House price growth in the two areas mirrors their respective performances with Newcastle seeing prices creep up by 1.39% whilst Sunderland has seen prices fall by -3.30% in the last year.

One league currently separates rivals Oxford and Swindon and despite a price tag of £414,659, nearly double that of Swindon, £210,052, Oxford comes out on top in both football and property terms with prices up 6.40% to 6.05% in Swindon.

Founder and CEO of, Russell Quirk, said: “Although it’s unlikely the table will look like this at the end of the season, it does demonstrate that while there are pockets of the UK currently seeing a decline in price growth, there are also areas all over the nation enjoying very healthy increases in values. It is also interesting to see how rival areas are performing differently, particularly those in close proximity to each other”.

"Although neighbours, Liverpool and Manchester are seeing different rates of growth, the higher end London clubs have seen prices stall whilst the capital’s peripheral teams are doing well, and Newcastle and Sunderland are seeing opposite fortunes in price growth terms.”

Steve Webb, director of policy at Royal London, said: "While figures for house price growth over a single year tell us little about the suitability of residential property as an investment vehicle, even this one year of data shows the huge variations in growth rates between different parts of the country. In some areas money invested in an average house would not even have kept pace with inflation whilst in other areas the growth in value was three or four times inflation. There is nothing wrong with investing in property as an asset class, preferably as part of a diversified portfolio. But individual savers are taking a big risk if they stake their future on a single asset - the value of their own home."

Well let’s see how different the football table is to the property price table at the end of season!


Adam's Technical - Valuation Amendments
It has been over five years since the introduction of the Retail Distribution Review (RDR) rules at the start of 2013. One of the consequences of these rules was that commission could no longer be paid on any new investments. The payment for advice was renamed as a ‘fee’ and had to be separated from the product provider’s own charges.

With regard to the initial advice fee this is straightforward, either a cheque is sent to M & T or the fee is paid by the product provider from the investment cheque/transfer amount prior to the monies being invested.

For the ongoing fee pre-RDR the annual management was included in the total annual charge and reflected in the price of each fund with the amount being split between the product provider and financial adviser. The amount of units held in each fund did not change unless income/capital was withdrawn, contributions were being made or natural income reinvested.

The only ongoing fee that is reflected within the price of funds since 2013 is the investment house’s charge. Our ongoing advice fee and the platform fee (if applicable) are paid by cancelling units on a monthly basis. This can be from one fund only or across all funds held in a plan depending upon the product provider. This means that any new plans set-up since 2013 operate this way. As time goes by we naturally have more plans being set-up on this new basis.

  Aegon / Cofunds
We issue client valuations three times a year. We update the units on each plan so they are correct to within a month of being sent. This is because it takes one month to manually update all plans prior to valuations being issued. Unfortunately technology still can’t do this for us yet.

Due to the amount of work involved to take account of units being sold when meeting ongoing fees we have made the decision to only update plans once a year to reflect these changes. Please note that our valuation may have different unit holdings to the ones you receive from the product providers directly. These will be minor.

On a separate point, please note that all plans upon the Cofunds platform have now been changed to Aegon following the platform restructuring. They may appear in a slightly different place on your valuation.

Gareth Says... 

National Savings & Investments recently released new issues of their Guaranteed Growth Bonds and Guaranteed Income Bonds. The minimum investment amount is £500 and the maximum is £10,000 per person.

Savers have to be 16 or over with a UK bank account. The interest, whether rolled up or paid out, is subject to income tax. Please note that this product is only available for applications on-line through:
The rates which are fixed for the term are as follows:

1.50% for the one year growth bond
1.95% p.a. for the three year growth bond

1.45% for the one year income bond
1.90% p.a. for the three year income bond
They are still available at the time of writing.

Staff Matters

Adam won the M&T fantasy football for the 17/18 season with a points’ tally of 2188, closely followed by Zara on 2134. If you want to challenge both of these top performing managers next season then simply do the following.

It's free to join and the league winner gets £100 with £50 for the runner up. The more people who join means there is more chance of knocking Adam from the top spot!
Fantasy Football
If you would like to enter please email and he’ll send you the details. Players from last year login as usual and you’ll be automatically entered into the M&T league.

This is purely for fun, the more participants the better so please join in!


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