Hearthstone Investments, a specialist fund manager in UK private rented housing, has launched a new fund to provide institutional investors with a further opportunity to invest in the UK private rented housing sector.
The Hearthstone Residential Fund has a target initial close of £70m.
It will follow the same investment strategy as Hearthstone’s Residential Fund 1, which closed in 2019 with secured equity commitments of just over £200m, and Hearthstone Residential Fund 2, which closed in 2021 and raised £152m.
One difference with the new fund, however, is its semi open-ended “evergreen” structure, with opportunities for investors to top-up their holdings or to reduce exposure if their needs change.
As with the two previous funds, it will provide institutional investors with an opportunity to strengthen their environmental and social credentials.
Homes within Hearthstone’s portfolio are energy-efficient and have carbon emissions per unit averaging just 1.3 tonnes per annum, compared with the average UK home of 6 tonnes. The firm stated that its new fund will seek to “make further progress towards carbon neutrality and energy efficiency”.
Chief investment officer at Hearthstone Investments, Andrew Smith, commented: “The launch of Hearthstone Residential Fund provides institutional investors with another valuable opportunity to benefit from the same highly successful strategy of our previous funds.
“Not only will income be protected and enhanced through active asset management, important ESG criteria will be embedded into the investment process which centres around raising the standards of homes available to residents in the UK’s private rental market.
“Hearthstone’s 10-year track record of investing in and managing a portfolio of over 1,800 homes nationally will ensure that the fund benefits from the strongest possible experience and expertise available in today’s private rental sector.”
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories