Investment Projects Presented By Local Experts

When deciding to invest into property, choosing the right location is a good place to start, and the type of property investment strategy that Sourced Capital’s Borrowers choose to embark upon, is often very much location dependent.

Some Sourced Capital investors aren’t too concerned where a project is located, their priority might be the type of strategy or returns they will achieve. While other investors focus on the location and prefer to invest in projects closer to home, so that they can go on site and see the updates for themselves.

Sourced Capital have projects all around the UK, as its Network now includes over 150 property specialists, who are experts in their local areas. Having the knowledge of the local area means that Sourced Borrowers are knowledgeable on the specific location and local market.

Each developer or borrower will have different aims and interests when either building their portfolio or flipping properties, whether it be for capital appreciation or achieving maximum yield. We’ve taken a look at some recent projects in different pockets of the UK and seeing why each strategy works in that area.


Scotland and the North of England offers the most affordable properties.

Northern England and Scotland reign as the UK’s investment property hotspots, according to a report released by Zoopla.

The north offers plenty to investors looking for a well-rounded property investment – one that can provide good rental yields and the potential for capital growth. Despite a continuing growth in house prices, northern cities still remain largely affordable, which is the key balance in today’s property investment market.

Scotland’s economy is expected to continue to rise strongly over the next five years, as well as a continued rising population. Fuelled by a reputation for quality of life, excellent transport links and a job market that is stable. There is amazing potential for property investment in Scotland, entry costs for investors are viable with prospects of high returns and strong capital growth.

Past Sourced Project in Scotland – McCrorie Place, Kilbarchan

Conversion Project in Kilbarchan

The McCrorie Place project launched in September 2019. The borrower, Phil Gordon, borrowed £182,000 for the conversion of a 4-bedroom detached house, spread over 2 floors. The property was flipped after being renovated. Sourced Capital has repaid the loan plus interest, a total of £202,566, to investors.

Phil is an experienced property investor and joined the Sourced Network back in 2018 and became the director of Sourced Glasgow Central.

At the time, the location saw strong capital growth with a healthy valuation on four bed properties within the area. Because of this, there was a demand for properties of this type in the location, which provided confidence with the open market exit. The strategy for this project was to flip the property. The water damage was repaired and there was a refurbishment throughout.  The target market were families from the surrounding areas, either looking to upsize or relocate from one of the surrounding towns to the highly sought after, village of Kilbarchan.

Phil says “This property is a short distance from Glasgow and close to transport links. It was a repossession property which needed a light refurb. Once the works were complete, I put the property on the market, there was high demand for homes like this in the area and the property sold really quickly. A successful project all round”.

Read more about this project here.


The North West is one of the UK’s biggest regions – with some of its biggest towns and cities including Manchester and Liverpool. What you might not know, however, is that it also has some of England’s cheapest investment properties. Birkenhead, Middlesbrough and Kingston-Upon-Hull were named amongst some of the more affordable towns in the UK, and all three towns saw more than 90% of all properties currently listed for sale as below the average UK house price of £256,405. The North East is one of the best places to invest in property with its array of low property prices, high rental yields and good probability of rising property prices in the future.

Past Sourced Project in the North-East of the UK – Columbus Ravine, Scarborough

Conversion Project in Columbus Ravine

Borrower of the Columbus Ravine project, Sarah Corrie-Pierce, was looking to raise £244,474 for the purchase and works of this guest house, converting it into 3 new 2-bed apartments. The project is now finished with a buyer secure, waiting for the sale to complete.

Sarah joined is the director of Sourced Scarborough, previous to property, Sarah was a teacher, but since swapping the classroom for the building site, Sarah has put her passion for property and people at the forefront of her first major development.

Sarah chose this location for the new apartments for many reasons, one being because Scarborough is the third most visited place in the UK and that the location is great for the target market of first-time buyers and serviced accommodation owners.

Watch the Borrower, Sarah, share the ins and outs of this project from a video shot in January. Click here to watch the video.

Sarah was also involved with the 41 High Street, Hull project, raised by Sourced Capital. This project was a historic building which was previously used as an office and has been converted into 8 apartments with an overall GDV of £1,570,000.

Hull has some of the UK’s best international connections due to its location near several major airports. The property is located within a 10-minute walk to the Hull main train station and a 5-minute walk to Hull marina, a popular visitor location.

Log in and view more details about this project here.


The South is more than just London.

With over 50 Sourced offices in the South alone, it is the biggest region of the UK with the biggest population. The south-east is one of Europe’s fastest-growing and most prosperous areas with the second-largest regional economy in the UK. The South-East also benefits from huge rental demand especially because of high south-east property prices.

The South-West is also a good area for investing, according to Warren Lewis at the Property Reporter, rent rises in the South-West of England were faster than anywhere else in England and Wales. Another report from Which? says that while London remains subdued, buy-to-let in the South-West is booming. The report says that while the North-East is good for yields, the South-West could be a better all-round investment for property investors.

Property prices in South-West England are slightly above the national average. According to HM Land Registry statistics, the average house in the south-west currently costs £258,372, just above the national average of around £256,405. However, there is still affordable investment property available in the south-west for investors who do their homework.

Project in the South-West of the UK – Wellsway, Bath

Property Project Bath

Borrower of the Wellsway project Catherine Lamond, was looking for a raise of £433,500 for the purchase and refurbishment of an end of terrace house, which was then split into 4 flats.

Catherine Lamond, director of Sourced Bitterne, has been in property for over 10 years. She studied surveying and has gone on to become a RICS planning and development surveyor. She has undertaken refurbishments and extensions and also has experience in conversions and new builds.

The apartments of the Wellsway project are in a perfect location to be used as student apartments, due to Bath being a major student city, with around 22,000 students. Bath is one of the country’s main tourist cities. It is not all about tourism though, other industries in the area include those which offer well-paid jobs, which is great news for the local property market. Bath benefits from excellent train services to other parts of the country and is a popular place to live with those who commute to Bristol and even to London.

The property itself required a light refurbishment and a title split, to then sell as individual flats. Listed for investment in November with a return for investors of up to 12%, proved popular with investors and was funded quickly. The project was completed in April 2021, repaying £472,515 to investors.

Log in to view the latest updates here.


One of the biggest reasons for investing in South-East buy-to-lets is its proximity to London… without actually paying London prices. Historically, as prices have risen in London they’ve rippled out to other towns and cities of the south-east, offering good profits for investors. The South-East is one of Europe’s fastest-growing and most prosperous areas with the second-largest regional economy in the UK. Many South-East towns and cities have successful economies of their own and many internationally-significant businesses offering highly paid jobs that support the housing market.

Project in South-East of the UK – Dury Falls, Hornchurch

Project Hornchurch

This project was listed for investment in August 2020 with a return for investors of up to 12% pa.  The borrower of this project, Everton Brown, is an experienced property investor who requested a loan of £367,500 for the purchase of the land, demolition of the garage and the build of a 3-bedroom detached house.

The works on this project were completed in April 2021 and the property has been sold, pending exchange of contracts.

Hornchurch is a suburban town in East London, England and part of the London Borough of Havering. It’s popular with families for its affordable thirties semis and large executive homes. Discovering the plot of land for sale, Everton saw a great opportunity to build the modern 3-bedroom family home. Hornchurch has plenty to offer, with its high street lined with Victorian shops and its town centre full of eateries and bars.

Everton has been a landlord since 2006 and joined the Sourced Network back in 2018 when he became the director of Sourced Barnet. Since then, Everton has grown his BTL portfolio, carrying out refurbishments on all of his properties and maintained a rental income.

Watch the Borrower, Everton Brown, walk through the recently built family home, showing off all the finishing touches. Click here to watch the video.


Sourced Capital’s borrowers are part of the Sourced Network, which now consists of more than 150 property sourcers who are all experts in their local area. They operate in set areas, allowing them to have excellent knowledge of the local market and investment strategies that work for that area.

Read more about locations and investing in our previous blog – and to see where our borrowers are located see the map below.

If you have any questions or queries about how you can become a virtual property developer, contact our investment team who will be happy to help!


Call: 0333 9009 999

Volatility in Stocks and Property

Diversifying assets in a portfolio to mitigate the effects of market volatility is a commonly known practice. If you want to hedge against volatile equity markets, property can be a good alternative. 

The stock market offers several advantages, like high liquidity and easy access, which you can’t find in property. But on the other hand, it’s a property market that offers benefits like lower volatility than the stock market and less correlation with public market investment performance.

Thanks to these differences real estate investments are complementary to investment portfolios allocated largely to stocks or bonds, as they provide meaningful diversification.

Volatility and correlation are the key measurements which illustrate the advantages and disadvantages of each market type. 

Correlation shows the degree to which investment performances are related to one another. Investments can have positive, negative or no correlation with each other. You should remember that your portfolio is more diversified if you hold investments with little or no correlation.

Volatility is a way to calculate risk over time. When volatility is appropriately spread, a portfolio has a lower risk of loss in the event of poor performance from a given company, sector, market etc.

Volatility and correlation exist in every investment, but their amounts vary by different features like investment type, and market.

Public and Private Markets – Correlations and Other Values 

Markets can be categorised in many ways, but the most fundamental distinction is between private and public markets, where the main differences are the buying/selling dynamics.

Public Market Characteristics 

The main characteristics of the public market are:

– high efficiency, thanks to prices set by the market

– transparency of transaction details (public information about an investment)

– low transaction costs (low costs of the transaction), which facilitate high-volume trading

Thanks to these attributes, investments can be sold and bought quickly, so the public market offers high liquidity.

However, these attributes bring higher volatility too. Especially efficiency, which enables high trade volume. And, when the volatility is combined with a correlation of investment, the stabilisation and diversification of a portfolio are diminished.

Investors may not even realise how correlated their stocks are. Sometimes, companies from totally different industries share the same risk because of relying on the same fundamental inputs as oil. An increase in oil prices may cause a loss of profit in furniture and grocery companies because of increased transportation costs. And if you own investments in both, the negative risk is doubled in this scenario.

So, despite the upsides of the public market, a portfolio composed of public traded investments only is possibly more correlated than you may realise.

Stocks are usually very volatile during highly inflationary periods. At the beginning of this month (May 2021) increase in inflation rates have caused a drop in European stocks prices and Wall Street’s main indexes, led by tech-related stocks.

Private Market 

The private market operates differently than the public market, and thanks to this, they have the power to make a complementary, diversified portfolio. 

Private Market Characteristics

The main characteristics of the private market are:

– inefficiency

– higher transaction costs

– fewer buyers and sellers than on the public market

– information not public, not shared across parties

– prices are negotiated

Because of these characteristics, it can seem unprofitable at first glance, but the private market has less correlation and volatility than the stock market. It also allows investors to earn above-market returns in a way that is impossible in an efficient market.

Private market investments are traded at a lower frequency, which results in fewer changes to their real values. Daily changes are generally minor and less frequent than in the public market, meaning investors in property don’t tend to check on their investments on a daily basis.

Private market property has a lower trade volume, so it is less liquid than stocks, but it helps to prevent volatility in the values.

Property is a unique hard asset too. It can earn income while hedging inflation because they are naturally limited. At the same time, a rise in inflation would possibly cause a rise in the prices of many asset classes.

In the private markets, buyers and sellers can negotiate the prices of an asset, so investors can get above-market returns. This is possible because of a limited number of sellers and buyers.

Why should you care about low correlation and volatility?

Investments with low correlation help you to reduce the risk of the portfolio.

If you have uncorrelated assets in your portfolio you don’t have to worry if one of them unperformed, because the strong performance of the other will mitigate the risk.

If you want to diversify beyond an all-stock growth allocation, investing in property could help with that balance. Some people don’t want to do this, as individual investment property requires both lots of capital and hands-on participation.

Nowadays, you can invest in property without owning it, by investing with P2P platforms, like Sourced Capital. It is a good way of diversifying a portfolio and decreasing investment volatility. What’s more, your funds are much more liquid while you are investing in P2P than when you’re holding a property.

If you want to learn more about investing in hands-off property without purchasing it, please contact our Investment Team on email or tel. 0333 900 9999

Investment Behaviours in a Covid-19 World

Coronavirus has had a massive impact on the UK economy – in 2020 it shrank by 9.9%. The contraction “was more than twice as much as the previous largest annual fall on record”, said the Office for National Statistics.

GDP in last 15 years

After growing in October, the economy shrank in November, and then rebounded in December, so it seems that we will avoid a double-dip recession.

GDP in 2020


Faced by the biggest economic shock in global history, the fact that a lot of investors decided to change their portfolio could be surprising. But the even bigger surprise is the fact that about 35% of them reacted by increasing their exposure to higher-risk investments.

Following the latest Schroders’ Global Investor Study, an annual survey taken by more than 23,000 investors from around the world, suggests that a vast proportion of investors saw an opportunity in February’s large economic decline to invest further.

The survey was carried out between the 30th of April and the 15th of June in 32 different countries worldwide. It probed investors about their actions following the lockdown.

78% of investors participating in the survey decided to make some changes in their investment portfolios, and about 35% of them moved “some” or “a significant proportion” into high-risk holdings.

Investors Behaviour in 2020

Changes in Investment Portfolios in 2020

Taking risks when investing can often depend on the investor’s age. Younger people are keener on taking risks, so the results suggest, investors aged 18-37 were almost twice as likely to alter their portfolios than those aged 51-70 were not surprising.

Investment performance has become a bigger priority for investors over the last year, as about 83% of them think about their portfolio at least once a week. Before COVID-19, only 35% of them were doing this.

Investment income

Investors expect to receive an income of 8.8% from their portfolios over the next 12 months, which is lower than the 10.3% income they expected in 2019.

Investment incomes depend on the average returns of investment.

Last year, at the beginning of the pandemic, we prepared an article which discussed 5-year average returns from different investment types. In the table below you can see an average annual rate of returns (2015-03/2020).
Read more here: Classic cars, coins and fine wine have been the best investments in the last five years

Average anual rate of returns (2015-03/202)

Yields of the most popular investments have changed during the pandemic, take a look at the chart below.

Average Investment Returns in 2020

Average Investment Returns in 2002 vs. from 2015 to March 2020

FTSE 100

The UK FTSE 100 index fell by 14.3% during 2020, and it is one of the poorest performances among the largest international stock index.

The FTSE 100’s was so weak partly because of the pound’s strength, which erodes the value of multinationals’ overseas earnings.


When the stock markets crashed, gold hit new highs and many analysts predict even further gains. The return rate for gold varies from 2002 to 2020, but we saw mostly positive returns. In 2020, the return of gold hit 25%.


Despite challenging times, fine wine displayed low volatility relative to most financial markets.


Last year, bond returns fell, partly because of the cutting of interest rates and committing to keeping them at a low level by the central banks. The UK corporate bonds returns reached 3.5% at the height of the crisis.

Sourced Capital

The P2P analyst, 4th Way, claims that P2P investors made a positive return during the pandemic, especially compared to stock markets.

The global crisis hasn’t had a big impact on Sourced Capital investment returns. The average investment return was a solid 12.13%.

Some P2P platforms had to close or suspend their activities, because they had problems with nervous investors who wanted to withdraw funds as soon as possible. A few couldn’t find a balance between withdrawal requests and maintaining liquidity to approve and fund loans.

Fortunately, Sourced Capital had a relatively good year. With over 20 projects funded, the full amount invested was over £10,000,000.  

To learn more about Sourced Capital, download the lenders guide.

Capital at risk. Not covered by the FSCS. Past returns are not necessarily a guide to future returns.




UK economy suffered record annual slump in 2020

Market shock: how did investors react to the impact of Covid-19?

FTSE 100 suffers worst year since 2008

FTSE 100 suffers worst year since financial crisis

Return on gold as an investment since 2008

Cult wines 2021 Outlook

Why we see opportunity in UK corporate bonds

Which bonds for 2021

How the pandemic has changed P2P lending

P2P outperformed UK stock market during the pandemic