Housemartin investors lend to property-holding SPVs, each of which holds one or more residential properties. The majority of the portfolio consists of supported living assets held under medium-to-long leases to care providers, charities or housing associations, although a small number of legacy properties are let under alternative arrangements.
Returns are generated primarily from rental income under long-term leases. The objective is to keep properties let for the long term to supported living providers. A sale is an exceptional outcome and is typically only pursued where a lease ends or is terminated and a suitable long-term replacement cannot be secured; sales are not a routine feature of the model. When a sale is pursued, the aim is to bring the investment to an orderly close where a long-term tenancy solution cannot be achieved.
Portfolio performance by financial year
(Our financial year runs to 31 October)
These figures show, by financial year, the total amounts of loans originated, interest paid, capital repaid and net realised capital gain/(loss) on fully resolved loans, together with other key portfolio indicators.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TOTAL | ||
|---|---|---|---|---|---|---|---|---|---|
| Loans Originated | £404,147 | £4,474,879 | £2,975,870 | £11,173,719 | £6,088,624 | £3,584,323 | £5,348,418 | £34,049,980 | |
| Interest Paid | £11,673 | £175,639 | £360,673 | £640,870 | £1,252,848 | £1,443,380 | £1,701,566 | £5,586,649 | |
| Net Realised Capital Gains | £0 | £27,466 | -£16,319 | £116,174 | £22,137 | £0 | £37,360 | £159,352 | |
| Capital Repayments | £0 | £208,714 | £179,638 | £875,313 | £1,242,954 | £490,320 | £1,828,601 | £4,825,540 | |
| Properties Bought** | 3 | 17 | 10 | 55 | 24 | 12 | 19 | 140 | |
| Supported Living Beds | 0 | 7 | 32 | 122 | 56 | 39 | 42 | 300 | |
| Properties Sold | 0 | 1 | 1 | 4 | 0 | 2 | 4 | 12 | |
| Secondary Market Volume | £252,555 | £574,307 | £3,430,766 | £12,004,536 | £6,175,439 | £6,505,983 | £7,828,522 | £36,772,108 |
Notes
- “Properties acquired” refers to individual residential units.
- “Net realised capital gain/(loss)” is calculated only for loans that have been fully repaid and resolved. It represents the difference between the total capital repaid to lenders over the life of the loan and the original loan principal, expressed as a gain or loss on the capital originally lent. For loans that have been partially repaid or are still in wind-up, the capital outcome is recognised once all repayments and final costs have been settled.
- The table includes two legacy development loans that have been fully repaid; Housemartin no longer undertakes development loans.
How risk shows up in practice
In Housemartin’s model, investors can experience reduced returns or capital losses even where no loan is in default. Investors should not interpret low or zero default rates as meaning that their capital is secure or that returns are guaranteed.
Such outcomes may arise where, for example:
- a lease is terminated early or a break clause is exercised, resulting in a period with reduced or no rental income;
- a replacement lease is agreed on less favourable terms, leading to lower income than originally anticipated; or
- following a lease end/termination, a suitable long-term replacement cannot be secured and investors decide to sell the property, with net sale proceeds (after costs) insufficient to return the full original loan amount.
In these situations, interest may temporarily stop being paid in cash. Under the loan terms, any unpaid scheduled interest may accrue and be settled when funds are available, normally from rental income and, where applicable, from available cash in accordance with the loan terms, including at exit, which can reduce the amount of capital ultimately returned. These outcomes are reflected in the net realised capital gain/(loss) figures above and in deal-by-deal reporting.
Events of this nature have been infrequent across the portfolio to date and have typically arisen from external changes affecting supported living provision, such as the exercise of contractual break clauses or isolated instances of tenant insolvency, rather than during the normal operation of long-term supported living leases. Where they do occur, the impact is reflected in investors’ realised returns and capital outcomes, rather than through loan defaults, and is shown in the performance history for the relevant loans.
Lease and income disruption events
Housemartin tracks events that result in interest payments under a loan being temporarily interrupted, rather than routine or expected lease milestones.
Summary to date (event-based):
- Lease break or early termination events resulting in a temporary interruption to interest payments: 3
- Tenant insolvency or rent non-payment events resulting in a temporary interruption to interest payments: 1
Each event is recorded when it occurs. A property may be counted more than once if separate, unrelated interest-disruption events occur at different times.
This event tracking excludes legacy short-term AST arrangements, which are not part of Housemartin’s current supported-living strategy, and does not capture other performance drivers such as changes in lease terms, local market conditions or property-specific costs.
Headline rates vs actual outcomes
The interest rate shown on an individual property listing represents the contractual rate applicable while the property is let under its lease.
Actual interest received by investors reflects property and lease performance over time. Where rental income is disrupted or a property is being re-let or sold, interest may accrue and, if not paid earlier from rental income, be settled from available cash in accordance with the loan terms, including at exit, which can reduce the amount of capital returned.
Where this occurs, the impact is reflected in investors’ realised returns and capital outcomes, rather than through loan defaults.
Defaults and Outcomes Statements
Under FCA rules for P2P agreements that are not secured on property, a loan is generally treated as in default where a contractual payment of interest or capital has become due and remains unpaid for more than 90 days, or where the borrower is otherwise unlikely to pay amounts that have become due. In Housemartin’s SPV structure, this typically arises only where a borrower SPV fails to pass on funds that are contractually due and available (for example, by not distributing net sale proceeds or rolled-up interest in accordance with the loan terms).
To date, no loans have been classified as in default under this definition. However, investors have experienced reduced returns and, in some cases, capital losses driven by property and lease performance, and these outcomes are reflected in the net realised capital gain/(loss) and actual return figures rather than in default statistics.
In line with FCA rules (COBS 18.12.21R-23R), Housemartin publishes an annual Outcomes Statement setting out expected and actual default rates by risk category, together with the assumptions and methodology used.