On 23rd March it was announced that the NFTS Board of Governors had appointed Sophie Turner Laing, former CEO of Endemol Shine and MD of Sky, as its new incoming Chair. She becomes the School’s first female chair, succeeding Ingenious founder Patrick McKenna, who will step down at the end of his final term in August, having held the post since 2013.

The NFTS, which has some 600 students studying a wide variety of industry focused MA courses, Diplomas and Certificates covering the whole screen sector, from film and TV to animation and games, has regularly featured in The Hollywood Reporter’s annual ranking of the world’s top ten film schools.  It has been described by The Guardian as the world’s best film school, reflecting the fact that the School’s graduates are invariably snapped up by industry on graduation, demonstrating the unique strength of the School’s distinctive teaching model, which is strongly influenced by commercial partners.  These include the BBC, Channel 4, Sky, Disney and Amazon.  

Patrick’s leadership of the School has been transformational.  It has greatly expanded its educational footprint, with the opening of state-of-the-art equipped premises in Beaconsfield and new teaching facilities in Glasgow (NFTS Scotland), Leeds (NFTS Leeds) and Cardiff (NFTS  Wales).  The number of students taught has more than doubled, whilst the progressive change in the School’s gender and ethnic balance within the student body has set the standard for improving performance on diversity in recruitment.

Patrick has done a phenomenal job as Chairman. During his tenure, the NFTS was the first ever film school to win a Queen’s Anniversary Prize for Higher and Further Education and the first educational institution to be awarded a BAFTA for Outstanding British Contribution to Cinema, in recognition of the role it has played developing British creative talent.

I have many happy memories of working with Patrick and would like to thank him for the invaluable support and advice he has given to me personally, and to the School more broadly over the past nine years.

Dr Jon Wardle

NFTS Director

We are very pleased that the Court of Appeal reversed the findings of the Upper Tier Tribunal and ruled that our film partnerships were, as we have always contended, trading with a view to profit.  In light of this judgment we are considering what further options are open to us in relation to these proceedings.

Life was good in 1967 Britain; the first colour television broadcast was made on BBC2, Sandie Shaw won the Eurovision Song Contest and Beatlemania was in full flow. August 1967 was particularly sunny and warm and annual price inflation (RPI) sat at just 1.4%1.

Within 12 months, RPI reached 5.7%, subsequently remaining above 5% for THIRTEEN years, including five years above 10%, and peaking at an eyewatering 26.9% in August 1975. From 1967 to 1983, inflation averaged 11.1% per annum, and the price of goods increased by 540%, having a devastating impact on the standard of living.

Those who were starting out in life in 1967, looking to buy a home and raise young families, are now in their 70s and 80s with very different aspirations and concerns. But if inflation makes a comeback, as is expected, what does this mean for them now that they are retired and for their later life and estate planning considerations?

Most people in later life have two overriding objectives; leave the best possible legacy for their family and ensure they have enough money to meet their own life needs. The two are not mutually exclusive as their accumulated wealth may need to be used for either purpose depending on how life pans out. Advisers therefore need to help them plan for all possible eventualities.

Inflation and capital taxes

Let’s consider the impact of inflation on legacy aspirations. In March 2021, the Chancellor froze all Inheritance Tax thresholds until 2025/6. In an inflationary environment where asset prices, particularly property values are increasing, more estates will be dragged into paying Inheritance Tax. Those who are not actively looking to sell their properties may be blissfully unaware that their assets have crept above the nil rate band and the prospect of IHT being levied on their estates may come as a surprise to them. For those with assets above £2m, again likely to be a growing number, Residential Nil Rate Band taper will accelerate as the value of their estate grows and so they may not enjoy the same level of relief they had been expecting.  Gifting of IHT exempt assets, such as Business Relief (BR)-qualifying assets may be considered as a way of mitigating this.

Similarly, more clients could be dragged into the Capital Gains Tax net if they wish to crystalise gains made on other assets. Keeping track of rising asset values relative to tax exemptions and thresholds could make a real difference to the legacies clients are able to leave to their beneficiaries, or to the amount of money available for clients to pay for their own life needs. Proactive management will become an increasingly important aspect of the adviser role in an inflationary environment.

The ‘Real’ value of money

Many clients looking to maximise their legacies whilst maintaining access and control consider BR-qualifying investments, of which there are now a variety on offer from a number of investment managers. Many of these have a “capital preservation” focus and target modest returns, some as low as 1.5% p.a. and numerous around 3% p.a. Inflation has been low since the market for these products was developed, allowing investors to maintain the real value of their investments, but with little room to manoeuvre for any bumps in the road. Indeed, in recent times some services have struggled to meet these targets due to volatility in energy related assets.

Whilst the Office for Budget Responsibility (OBR) medium-term forecasts for RPI are around 3%2, Deutsche Bank has warned of a global inflation time bomb, with inflation re-emerging in 2023 at a level which “could resemble the 1970s’ experience”. It has to be said that this is not a widely held position but not many people expected to see double-digit inflation figures when they were enjoying the summer of 1967!

Even if the OBR are correct, some BR-qualifying portfolios would be struggling to preserve capital in real terms. It is vital therefore that advisers look towards services which can offer greater returns, and low costs, so that legacy aspirations can remain intact.

Rising costs of raw materials and energy lead to higher prices for consumers and a poorer standard of living if incomes cannot keep pace with expenditures. This is at its most acute for those in retirement, who often rely on savings to supplement their income, and where pensions maybe index-linked but ‘real inflation’ is growing at a faster rate than the index. In this situation, a planned legacy may now need to be repurposed to meet life’s needs.

Accessibility & liquidity

Strong performance and minimising tax deductions on withdrawals can make money go further, but accessibility is a pre-requisite in this scenario. Whilst BR portfolios are favoured by many as they are, in principle, more accessible than most trust-based estate planning strategies, liquidity within the underlying companies and investments varies significantly. In challenging times, physical assets can prove difficult to sell in a timely manner and at a favourable price, even those shares listed on AIM may not be as readily realisable as they appear. Holding cash for liquidity purposes would become too much of a drag on returns in an inflationary period. This could explain why there is a trend developing towards secured lending-based investments where no trade or asset sale is required as there is natural liquidity within lending books.

Care provision

We all know that more and more people will need care of some description in later life. We know that it is expensive and can wipe out a lifetime of saving in next to no-time. Care provision is, by definition, a very personal service, delivered by caring individuals, who have bills to pay and who will face rising costs themselves. Ignoring for one moment any cost of goods, the inflationary surge in labour costs in the care sector alone will lead to significant increases in care fees. Obtaining professional guidance to navigate the care system, securing great care at the best possible cost will become increasingly important for families who want the best for their loved ones.

The value of advice

Only 5% of the UK population are over the age of 75 and will remember what it was like having to deal with inflation back in the 1970s’, most financial advisers were still at school and many not even born, the experience of the client coupled with the expertise of the adviser makes for a good partnership but meeting the challenge of inflation requires product providers to support them with solutions which can provide sufficient growth, income, accessibility, tax efficiency and access to professional services in specialist areas such as care.

1Office for National Statistics, June 2021

2Office for Budget Responsibility, May 2021

Ingenious Media is proud to present two films in the upcoming Cannes Film Festival, running from 6 to 15 July, moved from its usual May berth due to the pandemic.

The first, Flag Day, is directed by Sean Penn and stars his daughter Dylan in a breakout role, together with Penn himself, Josh Brolin and Katheryn Winnick.  Flag Day will hold its World Premiere in the Official Competition.  Following its selection announcement, MGM acquired North American distribution rights and will release the film via its marketing-distribution joint venture United Artists Releasing in August this year.  Flag Day is based on Jennifer Vogel’s memoir Flim-Flam: The True Story of My Father’s Counterfeit Life.  It tells the story of the author’s coming of age, played by Dylan Penn, over two decades while navigating a fraught relationship with her beloved, career criminal father.

The second Ingenious-backed production will screen in the new Cannes Première section. Oliver Stone’s new feature documentary about the assassination of US President John F. Kennedy,  JFK Revisited:  Through The Looking Glass, is narrated by Whoopi Goldberg and Donald Sutherland and includes a team of forensics, medical and ballistics experts, historians and witnesses.  The documentary comes thirty years after Oliver Stone’s Oscar-winning drama JFK and will feature recently declassified evidence and testimony in relation to the President’s 1963 assassination.  Altitude Film Distribution will release the film in the UK and Ireland.

At Ingenious, we consider estate planning to be just one part of a comprehensive later life plan. Business Relief (BR) solutions should be approached as an investment service in their own right and not solely considered as a tax solution. Advisers should remember not to let the, “tax tail wag the investment dog.”

When it comes to undertaking BR due diligence, we have six golden rules advisers can use to position their clients for the best possible outcomes for both estate planning and later life.

1. Strong Performance is crucial

Estate planning is about leaving the most to our chosen loved ones as a legacy. Individuals should therefore plan to maximise the wealth they will have to ultimately pass on to their beneficiaries, whilst considering any potential needs, such as home improvements or travel, as well as the possibility of needing to pay for care one day. As well as helping to meet any needs, strong growth is also a key weapon to counter the negative forces of inflation, so seeking a steady, long term, meaningful return is always crucial.

2. Keep costs to a minimum

Costs are another guaranteed negative force on investment returns and so should be minimised. Lower costs can also reduce risk. A manager with lower fees doesn’t need to chase extra risk to cover these costs before delivering on their specified or target return, which is calculated once fees have been deducted. In addition, high costs can indicate the investment is not delivering best value to the investor, but that instead the manager is taking the significant benefit.

3. Understand all factors affecting the trading activity

BR investments are investments into underlying portfolio companies, which can carry out a wide variety of BR trading activities. These companies and the markets in which they operate should be clearly understood by the adviser. BR companies tend to either own and operate assets or carry out a lending trade. Some do both. Broadly speaking, those with a higher proportion of their portfolio in physical assets will see their fortunes depend on the performance of those assets and will fluctuate on the fundamentals of the sector. Those more focused on lending should see more steady returns as they will have lent money at normally fixed rates and any market fluctuations should have less impact. The associated risks of both routes, including their sector, liquidity and valuation risks, vary widely between strategies. This should all be considered in the context of the investor. Is the trading strategy and associated risk appropriate for their profile?

4. Know what it’s worth

When making any investment, it is crucial to purchase the asset at the correct price, taking into consideration the potential future sale value. For BR, there are two main considerations.

The first is being aware of the methodology undertaken by the manager when calculating the Net Asset Value (NAV) of the service. Owned assets tend to be more complex to value, are reliant or many variable assumptions and have more potential for subjectivity. Valuations that appear not in line with current market fundamentals or with similar services, should be assessed carefully. Lending services tend to be more transparent and less subjective to value.

The second consideration is whether the share price for incoming investors is trading at a premium to the audited NAV. If so, this should be reviewed, as it means the investor is taking on extra ‘valuation risk.’

5. Ensure tax-efficient access

Investors in later life do not normally wish to give up control and flexibility of their wealth to achieve estate planning or investment objectives. It can be an uncertain time and being able to adapt is key. But any access to this capital should be managed in a tax-efficient way, considering Capital Gains Tax (CGT). One way to do this is through investing with a Manager that only offers newly issued shares, rather than using matched bargains. Such shares, after a three-year holding period, should qualify for Investors’ Relief, capping CGT on any disposal at 10%, rather than the potentially higher 20%.

6. Seek maximum utility

One in three people aged 85+ require some form of care1. As well as making the most of any investment, later life planning should seek to provide further utility, for instance, in the preparation for potential care needs. By considering the potential cost of care and practically pre-planning to meet any care needs, the investor will be equipped to make the right choices should this issue arise.

If advisers want their clients to get the most from any BR service they recommend, the use of these rules should help ensure the optimal outcomes.

1AgeUK Briefing: Health and Care of Older People in England, 2019
First published on Professional Adviser 

Mindful Education were recently the Headline Sponsors of the Tes FE awards which took place virtually on 28th May. This event, which takes place on an annual basis, aims to celebrate the fantastic work and achievements of the further education sector. 

London South East Colleges (LSEC), one of Mindful Education’s college partners, picked up three awards, including the prestigious ‘FE provider of the year’ award. 

We are all absolutely delighted to win these three awards  – especially Overall FE Provider of the Year, which is a huge honour. It’s been an incredibly tough year for staff and students alike, but everyone has gone the extra mile and it’s wonderful to get recognition for such hard work.

Sam Parrett

LSEC Group Principal and Chief Executive

A number of our other college and training provider partners also went home winners, including: 

Mindful Education’s Managing Director, Mark Mckenna also shared a few words on the ceremony; “After a challenging 12 months, it’s fantastic to celebrate the hard work and achievements of so many people within FE.

Mark McKenna

Mindful Education’s Managing Director

You can watch Mark’s full speech here.

Ingenious is today delighted to announce that Ingenious Real Estate Finance LLP (Ingenious Real Estate) has completed four new loans totalling £52million to fund new residential developments in Liverpool and across Greater London.

In Liverpool, Ingenious has agreed a development finance facility of £32.5m over 24 months to fund the remaining construction of 1,000 student units with café, gym, cinema, dining rooms, and study rooms in the city’s Knowledge Quarter.

In London, Ingenious has agreed three loans totalling £19.8m for developments in Harrow, Hadley Wood and Croydon.

A facility of £11.4 million over a 22-month term, with a LTGDV of 70% has been agreed with developer Tremula Investments Limited to fund 40 flats in Harrow, North West London.

In Hadley Wood, North London, a £5.9 million development finance facility has been agreed with Toorak Apartments Limited over a 22-month term with a LTGDV of 66% to fund the demolition of the existing building and construction of a block of nine apartments – all completed to a high specification.

Finally, a £2.5 million facility has been agreed with Zunikh Property Developments to fund the development of six townhouses in Croydon, South London. Each unit benefits from three bedrooms, a study, private garden and roof terrace. The loan term is 18 months with a LTGDV of 70%.

We’re really pleased to be able to support these projects in Liverpool and across London. We continue to see appetite for quality development deals across the country as pricing & demand remain strong. We’re delighted to be working with all our partners on these projects and look forward to progressing with each development.

Tom Brown

Managing Director of Real Estate

These latest loan agreements represent the continued demand for residential real estate development across the UK, despite initial concerns around delays to construction as a result of the impact COVID-19 had on the sector. Previous deals this year include a £19m loan facility with property developer Citu, to fund the next 120 units at the Climate Innovation District (CID), the UK’s largest sustainable development, in Leeds; a £5.3 million loan facility to a joint venture between Indigo Capital Solutions and Blakesley Estates for a development in the seaside town of Westward Ho!, North Devon and a partnership with Piper Homes, to finance a £7.5 million loan for 26 family homes in the village of Upper Rissington in the Cotswolds.

Formed in 2013, Ingenious Real Estate focuses on providing senior development and bridging finance to well-designed schemes in locations across the UK that have a proven demand. Typical loan terms are 12-30 months, and the team has since completed more than £500 million worth of transactions. The current portfolio balance is weighted towards residential, with the majority of Ingenious developments qualifying for Help to Buy.

In September 2020, Ingenious became the first alternative lender to become a member of the UK Green Building Council (UKGBC). As part of this membership, Ingenious is actively seeking to engage through training programmes, thought leadership and access to the latest research so that it helps drive sustainable standards within the sector.

First published on Citywire NMA

For over a year, many investors have held off on making vital decisions due to the fear of the unknown, longer-term impact of the pandemic. While investors can be forgiven for their continued caution when it comes to making long-term financial planning decisions, they need to accept that yet another year or more of inaction brings its own real risk. And the longer they vacillate, the more risk they are taking in missing out on the potential benefits of the right financial strategy.

Advisers with clients planning for later life are typically looking to achieve steady, inflation-beating returns with low volatility. But investors are cautious about listed markets where they see high volatility driven by market sentiment, so increasingly, many are considering unlisted investments as they are not affected in the same way. Still, the pandemic has had a profound impact on most industries, but one sector that has remained resilient, and in fact surprised most with positive results, is residential real estate.

Residential real estate

The affordable end of the housing market benefits from some core fundamentals that helped it withstand the pressures experienced by other sectors. There is a structural lack of supply to meet demand in the UK and in 2018 alone, 80,000 fewer houses1 were built than were required. This has caught the attention of the Government and supportive policies such as Help to Buy has further sustained the demand for completed housing. Most recently, the Government identified the property sector as key to the UK’s economic resilience and recovery from COVID-19, with other measures such as the stamp duty holiday contributing to average house prices ending 2020 up 8.5%2.

Conservative secured lending model

Despite these positive forces, there are risks with investing in the property market, so a conservative strategy is key to protecting investors. Rather than taking an equity or ownership position in a single housebuilder, developer or physical property, a portfolio-based, secured lending model offers a number of risk-mitigating benefits. By lending to a range of developers, carefully selected on a project-by-project basis, and earning a fixed rate of interest, there is inherently lower volatility. Protection is enhanced by taking a senior debt position on each development. Clear loan terms also mean that regular interest is paid, and the repayments of the loan begin as soon as discrete units of a development are sold, creating liquidity for the portfolio and maintaining diversification benefits for investors. By contrast, equity or ownership investments and their valuations can fluctuate over time as the asset price changes and ultimately, any drop in value is immediately felt by the investor. In the lending model, this isn’t the case, and any loss in value is initially felt by the developer, not the lender.

How can your clients benefit across later life

While this strategy has been proven to deliver steady investment growth over time for investors in the post-retirement stages of their lives, they often have an additional objective to consider. How can they pass on maximum wealth to their loved ones when they die? There are two contributory parts to this objective. First, which we have already covered, is the need to grow their wealth to combat the effects of inflation and drawdowns. Second, is the wish to mitigate the impact of Inheritance Tax, which can reduce one’s legacy by 40% upon death. Business Relief services are a popular way for investors to select an investment that meets both their growth target and the objective to optimise wealth transfer. They also retain full access to their savings in case their circumstances change, or an emergency arises. This level of flexibility and security should ease the concerns of investors who are paralysed by caution in these uncertain times and allow them to confidently plan for their future goals today.

1Savills, 2018
2ONS, UK House Price Index: December 2020

First published on TheWealthNet

There is an increasing demand from advisers and wealth managers for services that deliver across a wide spectrum of client needs in later life. From investment growth to estate planning and preparing for care, it is clear to see that later life is one of the most complex areas to plan for. At Ingenious, we recognise that financial planning and planning for care go hand in hand, which is why we work closely with Grace Consulting, one of the UK’s leading Care advisory services. We recently spoke to their Managing Director, David Nugent, to discuss the growing demand for care and how planning can create a more positive outcome for individuals.

Can you put into context the magnitude of the requirement for care today?

In the next 20 years, our population will age, with 50% more over 65s and 93% more over 85s1. Nearly one in 6 people will reach their 100th birthday in 20402. This is all great news as it is down to advances in medicine and lifestyle choices. However, it of course comes with its own challenges. In the later part of their lives, many are living with disabilities, such as dementia or arthritis, or the lasting impacts of a stroke or fall. And indeed, even those who are physically healthy may suffer with loneliness. This will result in a huge rise in care needs for a large part of the population. In England, more than 1 in 3 people aged 85+ will require some form of care1.

What are the greatest challenges that individuals and families face when it comes to care?

The answer to this is three-fold.

· The provision of care

There is an existing undersupply in care facilities in the UK and a lack of planning to increase this provision to meet the increasing demand outlined above. In fact, the provision has reduced over recent years with the number of care-at-home hours falling by 3,000,000 between 2015 and 20181, for example. Due to the lack of funding, private funders, who make up a substantial proportion of the total number in residential care are having to subsidise state funded spaces. This makes it even more important for people to ensure they are getting care that is right for them.

· Lack of information about care

The increasing need for care, combined with the longer amount of time people are spending in care, means that making care arrangements is a more important decision than it once was. However, whilst the Care Act has put a duty on local authorities to make information available to ensure people are aware of the options that may be available to them, in practice this information may be limited, or may simply signpost individuals to generic materials that are not tailormade for the particular person or their circumstances. Similarly, those that search for information online are unlikely to find all the information they need, and there is no guarantee that what they do find is current or accurate.

· Cost

Care is expensive and in the last 10 years, prices have increased considerably faster than the Retail Price Index.

How can people deal with these challenges?

The need for care is becoming one of the sad realities of modern living. The real challenge is turning this reality into a positive experience, not something that is bolted onto life in an emergency. The best way to achieve this is through forward planning and preparation. There are two main areas people should prepare for:

The first is financial preparation. It is important to understand the funding provided by the state when it comes to care. Most funding is means-tested and in England, for example, local authorities do not typically provide financial assistance for anyone with capital over £23,250 (and if you’re looking for residential care, this will include the value of your home if you live there alone). There is some non-means tested support available in certain circumstances, but it is limited.

Assuming your clients have assets over £23,250, they will probably be liable for the full cost of their care, so how much should they expect this to be? Care options vary hugely of course, from assisted living to care at home and residential care, but to give you an idea, two hours of care at home per day could cost around £18,000 per year and residential care can cost over £65,000 annually.

This means financial preparation for care needs to be considered early on and not just by the elderly. And importantly, people need to retain access to their money. We see many people who have prepared for legacy planning, resulting in funds being tied up in trusts, or families who have gifted money to their children and need to ask for it to be returned. That is one of the reasons Business Relief Services are becoming increasingly popular, they can offer both investment growth and access to savings.

The second crucial area of planning is practical preparation. This is wide ranging, but to give some examples:

All of these steps can contribute to a far better outcome for the individual and their loved ones. Having a contingency plan in case of emergency helps many people to stay in control of their situation and not need to make such hurried decisions, for instance when discharged from hospital.

That all sounds very simple, but with the challenge of a complicated system that you identified earlier, where should people start?

I wholeheartedly encourage people to engage with expert advice when it comes to preparing for care. It is something we often deal with only once in our lifetime and the stakes are high, it is important to get care right. On average, people spend two and a half years in care2 and that is a significant amount of time if you, or your loved ones are unhappy with the choice. Independent advice can help by including the whole family and supporting a plan that is truly tailored to their needs, rather than having to take the first option available.

What is the cost for a care advisory service?

At Grace, we supply many families with advice across different price brackets and our services are available to many of the UK’s leading financial providers. Packages range from £295 to £2,450. However, investors in Ingenious Estate Planning benefit from our most comprehensive service, for themselves and their families, at no cost.

1 Age UK, Briefing: Health and Care of Older People in England 2019

2 Office for National Statistics, National Population Projections (UK) & Cohort Life Expectancy Tables (UK)

Grace Consulting provides independent care advice, and is not registered with the FCA as it is not authorised to provide financial advice.

When it comes to estate planning, Business Relief (BR) services are a popular choice for investors who would like to retain control of and continue to grow their wealth, whilst mitigating against Inheritance Tax. And whilst these aspects of estate planning have been objectives anticipated by advisers for some years, increasingly there is an additional challenge. Environmental, social and governance (ESG) factors are an ever-rising priority for many clients, especially as significant wealth is transferred to a younger and more socially conscious generation.

One investment strategy that can offer compelling returns for BR investors is secured lending to the real estate sector. Through investing in portfolio companies that provide senior, asset backed loans to developers on a project-by-project basis, investors have achieved steady returns with low volatility in a challenging investment environment. The real estate sector is not often considered to hold any ESG credentials, due to the perceived environmental impact of construction. However, in parts of the market, a focused investment strategy, construction reforms and Government initiatives can make for a more socially conscious investment opportunity than may present itself at first.

Social impact

There is a longstanding, structural shortage of affordable housing in the UK, leaving huge pent up demand in communities across the country. Without alternative lenders funding development projects across a diverse range of locations, this is set to worsen and could push affordability further out of the average household’s reach. The supply deficit has been recognised by Governments for several years. In response, a raft of policies have been enacted, for instance, Help to Buy, that has enabled many, often first-time buyers onto the property ladder at a more affordable level than would ordinarily be possible. Whilst this makes for a compelling investment opportunity, it also means investors can make a real social contribution by supporting the Government’s objective to build more affordable housing.

Sustainability

However, the pressing issue of the environmental impact within residential real estate investment remains and if we are to meet the nation’s Net Zero 2050 targets, the construction industry must play a big part. Currently, according to the UK Green Building Council, the total built environment accounts for over 40% of the country’s carbon emissions, with half of that coming from the construction and operation (such as heating and cooling) of buildings. If the UK is to meet its commitment to become carbon neutral within the next 30 years, a fundamental shift is required in the delivery and design of new developments.

In September 2020, Ingenious became the first alternative investor to become a member of the UK Green Building Council (UKGBC), signing up to its mission statement to radically improve the sustainability of the built environment, by transforming the way it is planned, designed, constructed, maintained and operated.

At Ingenious, we are committed to financing more sustainable developments and we have ambitious targets to increase the portfolio’s exposure to them in 2021. An example of the developments we will support as part of this effort is the Climate Innovation District (CID) in Leeds. In January, Ingenious completed a £19 million deal to fund the second phase of this development, which will ultimately become the UK’s largest urban sustainable development1.

The developers, Citu, are committed to building sustainable homes that people want to live in. The structural frames, built in a factory local to the development, are made from timber, which is carbon negative.  Windows are triple glazed for maximum efficiency and the houses are so energy efficient that the roof mounted solar panels create more energy than is required by the buildings, so it can be sold to the national grid. The MVHR heating system provides fresh air circulation while keeping heat within the building. In the communal areas, there are green walls, sympathetic planting to encourage bees and butterflies and even an otter house at this riverside location.

Combining the social impact of the contribution towards building affordable housing and the environmental impact of driving more sustainable practices within the construction industry, loan finance for real estate development projects can not only be an effective investment to grow wealth while mitigating IHT, but is an increasingly valid option for ESG conscious investors.

1Citu & Knight Frank, Climate Innovation District Information Memorandum, 2020