Welcome to the Oxford Spires Blog

Posted on 8th August 2017 by Adam Mackrell

Posted on 19th June 2017 by Adam Mackrell

Since the Scottish referendum on independence on September 18th 2014, we have not had a straightforward election and one, which I recently spent; much of the night watching has been as extraordinary as the Brexit vote and the recent presidential election in the US, completely defying expectations. I wonder what our children think? I wonder if they are going to imagine that all elections are as extraordinary as the ones, which they have experienced over the past two and a half years. If politics ever reverts to the more predictable, will they feel cheated? Will they always demand high-octane elections?

Posted on 26th May 2017 by hellodesign

May has passed without much time to notice, maybe its all the school holidays? It has ended with beautiful weather here in Oxford and indeed most of Europe it seems. Oxfords beautiful and lush gardens are more evident than ever with the rain that we have had at the beginning of the month and in contrast the heat and sun ever since.

I hope that clients and partners can visit – those that haven’t yet – to appreciate this unique city and its beauty. Only here can you walk just a few minutes to tranquility and be so far away but yet so close to so much.

Thinking about that, further afield and close by there are common patterns in our favourite subject. In Australia recently Tim Gurner a major Australian property developer  said  – controversially – that millennials and even centennials are too busy wasting money and living the high life instead of saving to get on the property ladder and this is one of the majority reasons as to why getting on (the property ladder) is “harder” than it has been before – this is not just something we have been seeing here close by in the UK but further away, all around the world. We believe this comment has some substance but we believe it is not of course the whole story for our younger generations.

Are modern lifestyles unworkable with sacrifices and savings needed to be able to buy this asset class in the UK today?

We don’t think so but we have certainly experienced some of the evidence for this together with other research that suggests that a lot of the younger generational views are that there is less interest in owning land and property and ultimately its upkeep and expense and are more interest in living life on a more flexible and mobile basis for multiple reasons. Whether its streaming music instead of buying it or leasing or hiring a vehicle instead of buying one this pattern goes right the way through to property itself.

This is partly why OSG’s assets are set up so that end users can save through rents that are not too high while maintaining a more than reasonable return on investment for partners and at the same time being set up in a way where end users have those things that are important to them, flexibility in contract, space to be communal but also space to retreat when needed and relax, study and work.

Just like the beautiful city of Oxford itself, always around the corner is so much or so little depending on what you need and when you need it.

Adam Mackrell

Director

Oxford Spires Group

Posted on 26th April 2017 by hellodesign

I once watched a movie some time ago about two groups of people whose task it was to get to the top of a high mountain. One group was given a guide whose approach was perpetually encouraging; when the group started to lag she would paint a glorious picture of the top of the mountain and the triumphant feelings which would occur when it had been successfully arrived at.

The other group were given, as their guide, a burly ex – marine whose approach was punitive – if they didn’t get to the top they would have him to deal with.

Towards the end of the programme, we were shown a picture of the summit of the mountain devoid of people. As the camera focussed on the rocky scene, we heard in the near distance, the sound of group of climbers being berated by a furious leader and, sure enough, the first group to appear was the one which had been abused by their commander. The group which had been encouraged were by this point feeling totally discouraged as they learnt that they had been pipped to the top. I felt very disappointed by this movie as I had, until that moment, always believed that encouragement was a much better and more effective way to get people to do something than an approach which promoted fear.

One of the most important novels of the 20th Century, “1984” by George Orwell has as its central theme, the power of fear to control the minds of a population. Quite contrary to any notion that people are able to retain an independence from an authority however dictatorial, Orwell put forward the deeply depressing view that if people are made truly frightened, they no longer retain the ability to act independently. In fact, he contended, people are able to be controlled completely through fear. “1984” is the starkest and most effective warning to us of this…

Despite these two powerful examples, I do not believe that controlling people by means of fear or greed is the best way to encourage obedience or achievement. I have noticed that the people who have achieved most in life have been those people who have been genuinely motivated to do something. In my experience, it has been the love of an activity which has caused them to succeed in it. My nephew who most loves playing football is the one who has made most rapid progress from his brothers because he is always playing it and In a professional context I feel very strongly that our role as a fund manager and advisor to investors in that fund, as guardians of an element of their portfolio in our chosen asset class is to always bring common sense to the table and to keep what we do simplified and to respect and encourage all elements of our deals. By sticking to what we know and love and not being swayed by the headlines, by greed or by fear we can and do continue to progress and reach objectives – together with them (investors and end users) in a way where everyone enjoys the experience and the relationship and everyone has a return on their investment, their effort and their commitments.

Adam Mackrell

Director

Oxford Spires Group

Posted on 20th March 2017 by Adam Mackrell

As the clocks go forward giving us lighter evenings, we look towards what is traditionally a busy season in the world of residential property buying and selling here in the UK. However there is no doubt that this year the market will be subdued this spring and summer and we believe it will stand still in many postcode districts and will begin to retreat in some others over the course of the year.

Meaning OSG leverage increases √ Ear to the ground research value gains √

Letting agents – still feeling very hard done by after being told they can no longer rip off tenants with silly fees (like £200 to change a name on a contract?) are spared the rules on the Fourth money directive and customer due diligence (CDD) that the authorities are bringing in this year for estate agents (no more laundering of dirty money in – mainly London then). So to sum up buyers checked and landlords and agents not so!

Meaning OSG Policies in line with what is expected √

Many letting agents are raising fees this year for landlords to make up the shortfall of the easy money they have gotten all too used to and according to Home let 30% of all landlords will be raising prices this year due to an increased percentage grab of income from the letting agents… Well done Letting agents and landlords let’s pass on the cost – ultimately to the tenants again to prove what a great, sustainable business model you have?

Meaning OSG using in house agent, not charging tenants any fees what so ever and still being on average 40% less than high street letting agents with the same protections in place – a good wise move for our investors √

You’re not so humble OSG… I hear some say. Well yes, the line between humility and pompousness can easily be blurred sometimes but the line of honesty and openness trumps it all and to quote the great actor Samuel L Jackson in a great movie  “that’s the triple truth Ruth”!

Adam Mackrell
Director
Oxford Spires Group

Posted on 27th February 2017 by Adam Mackrell

As the winter slowly edges away in the UK there are green shoots appearing in the garden, in parts of the countryside and according to Phillip Hammond in the British economy. However we all know how easily data can be made to show what you want it to and although we wouldn’t for a minute suggest this has happened, we need to always keep in mind common sense, a commodity that often seems like rare earth metals.. In short supply.

Global financial and currency markets are fluctuating as one would expect in “uncertain times” and Gold is doing rather well – depending on which perspective you look at it from. This is of course normal, in reaction to “Brexit” and the mainstream medias reaction to Donald Trumps government and policies…

Much more interestingly and much closer to home we have had the “whitepaper on housing” that we have been waiting for and it doesn’t disappoint see here.  Highlights include improving the PRS (private rental sector), the gathering momentum of the “build to rent” wave picks up strength and the – allegedly crucial – issue of tackling planning delays.

We haven’t heard much of some other important factors in what we hope is not too narrow an argument like sufficient land needed for something also important – namely food and agriculture security, shortage of skills in the building sector to build what is needed, other planning issues like community and neighborhoods and the fact that once people actually get a property they generally don’t want anyone to build any more, anywhere near them… And strong human rights laws that they can use to stop this from happening to name just a sample.

The UK rhetoric is finally shifting from home ownership and back towards the pre 1950’s cycle of majority rental and even further back towards the new “version” of landed gentry.

It is worth remembering that the fundamentals underpinning the residential housing market here are still many years from being resolved – namely the supply and demand imbalance.

We believe the UK and this market is still a safe haven for investors looking for a protected place for a part of their portfolios and invested in the right way – the OSG way – will appeal to investors looking to reduce their exposure to uncertainty and help obtain what they need in the medium term.

Adam Mackrell
Director
Oxford Spires Group

Posted on 17th January 2017 by Adam Mackrell

At times of change and uncertainty stability is essential and of course 2017 will be a year of change; Here – Britain will almost certainly trigger article 50 of the European constitution and thereby beginning the process of leaving the E.U., an act which may well have significant consequences, and on Friday President Trump will be inaugurated as the President of the United States of America, a process which will certainly mean a significant change of direction and style. Who knows whether these changes will be positive or not – but changes and uncertainty there will most certainly be. I am certain that as a world we will need some figures of calmness and some centres of stability because, though people need change, it can often be bewildering and in some cases overwhelming.

As I often seem to, I happen to come across at an apt time the quote on a calendar on my desk that was from German Philosopher Friedrich Nietzsche;

“Madness is the result not of uncertainty but of certainty”

Then this morning while attending a service 20 yards down the road from our offices at Christchurch here in Oxford, I heard the Dean repeat the words of King George from Christmas day 1939.

And I said to the man who stood at the gate of the year: “Give me a light that I may tread safely into the unknown.” 

And he replied:

“Go out into the darkness and put your hand into the Hand of God. That shall be to you better than light and safer than a known way.” So I went forth, and finding the Hand of God, trod gladly into the night. And He led me towards the hills and the breaking of day in the lone East.”

I am determined that as a company, as a fund manager, advisor that we will follow these suggestions this year more than ever. We will indeed move forward with confidence and remain a figure of calmness for our clients, our centre of stability of residential real estate for income will remain the mainstay and DNA of our professional lives here and we will do this knowing that we have things upon which we can depend – our conservative strategy and approach, the intimacy and nimbleness of our size which means we can adapt quickly and value every partner equally and highly. I hope that all our team, all investors and all tenants flourish because they’re properly cared for and their ROI is consistent and solid. We can all move forward we great confidence in these facts!

Adam Mackrell

Director

Oxford Spires Group