Below you will find our Q3 2025 performance announcement. This includes an LHX update, updated financial information on all properties, individual unit details, property disposals, dividends and other important information for investors.
To ensure that all clients have the opportunity to consider this announcement, the Exchange will be suspended as usual, for 3 working days, re-opening at 10am on Wednesday 5 November 2025.
Important upcoming dates
| 5 November | LHX Exchange reopens for trading (10am) Dividends for the month of October paid Unit schedule updated to 31 October 2025 |
| 1 December | November activity update published |
Today’s announcements
1. LHX update
2. Portfolio performance
3. Dividend distributions
4. LHX Mortgage Bonds
5. Shareholder votes
6. Members Voluntary Liquidations (MVLs)
7. Property development loans
8. Properties with fire safety issues
9. Upcoming quarterly announcements
1. LHX update
The property team sold 41 residential units in Q3 2025, amounting to £5.9m in property value. As a consequence £3.3 million of mortgage finance was repaid across our residential portfolio during the last quarter, reducing interest costs across the portfolio, with the total portfolio mortgage loan-to-value (LTV) currently at 40.9%.
Further student property sales have been finalised, with Ty Glyn, Bangor and Pierpoint St, Worcester having recently completed, as well as the final unit sales in large multi-unit residential blocks such as St David’s Lodge, Hastings; which will now begin the voluntary liquidation process.
We repaid another Mortgage Bond (Hammonds Landing) in October, with Bondholders achieving a total return of 11.1% on the amount repaid, and successfully completed another Bridging Finance investment (Newham, London); and have further offerings launching in the coming weeks and months – all eligible investors will be notified of the scheduled launch time and date and can find out more about the new product here: Bridging Finance Investments
As ever we value your feedback, so please do not hesitate to get in touch with us via support@londonhouseexchange.com if you have any comments or questions.
2. Portfolio performance
Today (31 October 2025) we have published updated financial information for every property, including net income, mortgage details and the net cash position. You can find this information at the top of each property’s respective investment page, in the ‘Financials’ section.
The ‘Individual Unit Details’ section, a tab within the ‘Financials’ section on each property’s investment page that provides detailed information on a unit-by-unit basis, will be updated on 5 November to reflect the latest status of every unit and contracted rent for let units. This tab is updated monthly and allows you to track sales progress for all properties voted for sale as part of their 5-year anniversary sales process.
All information is updated to 30 September 2025.
Residential portfolio unit status
The table below gives a summary of unit status by category across the residential portfolio at 30 September 2025. The changes exhibited over time continue to highlight the focus on selling residential units, as we seek to repay mortgages and fulfil shareholder mandates to sell properties following their 5-year anniversary votes.
| Resi status | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 |
| Let | 336 | 308 | 267 | 252 | 224 | 204 | 182 | 167 | 138 | 129 | 118 |
| To let: vacant | 10 | 4 | 7 | 6 | 5 | 4 | 6 | 2 | 4 | 4 | 5 |
| For sale: vacant | 52 | 54 | 79 | 49 | 49 | 53 | 46 | 52 | 45 | 29 | 30 |
| Under offer: vacant | 44 | 60 | 53 | 77 | 81 | 76 | 76 | 64 | 73 | 81 | 49 |
| Total current units | 442 | 426 | 406 | 384 | 359 | 337 | 310 | 285 | 260 | 243 | 202 |
| Sold | 86 | 102 | 122 | 144 | 169 | 191 | 218 | 243 | 268 | 285 | 326 |
Rental performance
We have been proactively carrying out rent reviews across the portfolio, leading to improved rental performance over each of the last 12 months. While rental growth has slowed, across 118 tenanted residential units, contracted rent grew by 0.4% in the 12 months to the end of September 2025. It should be noted that we are not undertaking as many rent reviews as usual as we vacate units to sell, we are continuing to serve Section 13 notices (notice of rent increases) where possible.
Residential Unit sales
There were 41 residential unit sales completed in Q3 2025, amounting to £5.9m in property value. Across these completed unit sales, sales prices were on average 17.2% below their vacant possession value (VPV) and 9.0% below their purchase price. Of the residential units sold in this quarter, 30% were London flats, which sold on average 13.0% below purchase price, with the remaining 70% being regional properties, which sold for 7.2% below their purchase price.
Clients can see the performance of agreed and completed sales in the Individual Unit Details of each property and on our Selling Record.
Mortgage debt
The average interest rate across our mortgaged portfolio stands at 7.3%, which is unaffordable for the majority of residential properties. The cost of servicing mortgage debt erodes rental income and is the primary reason for dividend suspension across the portfolio.
We are continuing to pay down mortgage debt wherever possible, predominantly through unit sales, and £3.3 million of mortgage finance was repaid across our residential portfolio during the last quarter. The total portfolio mortgage loan-to-value (LTV) is currently 40.9%.
3. Dividend distributions
There have been no changes to dividends distributions this quarter.
Dividends for the month of October 2025 will be paid 5 November.
4. LHX Mortgage Bonds
Following recent unit sales in Mortgage Bond properties during Q3 2025, there has been the partial repayment of capital and interest in one bond and full repayment of another:
- Queen Street Mortgage Bond: Following the completion of the sale of Flat 5, a further 69% of the Mortgage Bond has been repaid with interest. Bondholders achieved a total return of 11.18% on the amount repaid, equivalent to the interest rate of 7.49% p.a. over the bond’s 545 day term. The outstanding 15% of the mortgage bond remains in place, with bond investors continuing to accrue interest at a current rate of 6.75% p.a.
- Hammonds Landing Mortgage Bond: Following the completion of the sale of Flat 7, the remaining 23.6% of the Mortgage Bond has been repaid with interest. Bondholders achieved a total return of 11.1% on the amount repaid, equivalent to the interest rate of 7.73% p.a. over the bond’s 525 day term.
The Mortgage Bonds and their rates are presented below, but please note the next Bank of England base rate decision is coming up on 6 November and any change to the base rate will be immediately passed directly on to bondholders, changing the per annum interest rate for each of our Mortgage Bonds:
| Property | Current p.a. return |
| Heritage Court, Dinnington* | 9.50% |
| Queen Street, Sheffield* | 6.75% |
| Dutch Quarter II, Colchester* | 8.00% |
| Hammonds Landing, Sowerby Bridge | Fully repaid, with interest |
| Spencer Parade, Northampton | Fully repaid, with interest |
| Flats 7 & 9 Anchor Point, Surrey Quays | Fully repaid, with interest |
| Keogh House, Swindon | Fully repaid, with interest |
| Devonshire Place, Brighton | Fully repaid, with interest |
| Flats 15 & 25 Anchor Point, Surrey Quays | Fully repaid, with interest |
| Garden Court, West Drayton | Fully repaid, with interest |
| Jubilee Mansions, Barons Court | Fully repaid, with interest |
* Indicates partial repayment of capital with interest following unit sales.
5. Shareholder votes
There are no votes currently ongoing.
Your Dashboard, sets out those properties in which you are a shareholder with ongoing votes when live and all shareholders will be notified via email.
6. Members Voluntary Liquidations (MVLs)
Boyd Street, London: Following the sale of the property, the Company’s closing accounts were finalised and the Company was placed into members’ voluntary (solvent) liquidation on 24 September 2025; with a cash distribution made the same day to shareholders’ LHX accounts.
Phoenix Studios, Coventry: Following the sale of the property, the Company’s closing accounts were finalised and the Company was placed into members’ voluntary (solvent) liquidation on 24 September 2025; with a cash distribution made the same day to shareholders’ LHX accounts.
Lydan House, Redditch: Following the sale of the property, the Company’s closing accounts were finalised and the Company was placed into members’ voluntary (solvent) liquidation on 3 September 2025; with a cash distribution made the same day to shareholders’ LHX accounts.
Further information on the MVL process can be found here.
7. Property development loans
Proseed is providing updates on an ad hoc basis once information is provided to them. You can find the information on the outstanding loans on their respective investment pages here.
8. Properties with fire safety issues
We are working to help resolve outstanding fire safety issues where possible and the government is continuing to address the issues across the UK. Our power to progress the situation is limited in our capacity as a leasehold owner of a small number of flats within a larger block. However, where fire-safety issues have previously emerged and we are the freeholder we have been able to proceed to undertake the necessary works and resolve the issues.
We have 5 properties that remain impacted, with remedial works in various stages of completion – please read the latest update on each affected property’s Latest Update section:
- Premier House, Edgware
- Picture Works, Nottingham
- Hamilton House, Liverpool
- Sherringham Court, Hayes
- Vista Tower, Stevenage
9. Upcoming quarterly announcements
2 February 2026 – market closed from 10 am that day until 10 am, 5 February 2026
30 April 2026 – market closed from 10 am that day until 10 am, 5 May 2026
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If you have questions about these announcements, please email us at support@londonhouseexchange.com
Best wishes,
The LHX team