Temple Bar delivers 221% return over five years of Redwheel stewardship
On the fifth anniversary of Redwheel’s management of the Temple Bar Investment Trust, we take a look back at the trust’s performance and its current proposition to investors.
Since Redwheel assumed management responsibilities of Temple Bar in October 2020, the Investment Trust has delivered strong returns that significantly outperform both its benchmark and its peer group.
The Trust’s share price has surged 221.0% over the five-year period to 31 October 2025, more than doubling the FTSE All-Share Index’s 98.6% return.
Net asset value has risen 189.7%, outperforming the benchmark by 91.1%.
The transformation of the trust was driven by co-portfolio managers Ian Lance and Nick Purves who have remained staunch UK-focused value investors, a strategy that has
Temple Bar has secured the number one ranking in the UK Equity Income Sector across one, two, three, and five-year periods according to Citywire data.
Within the AIC’s UK Equity Income peer group, the Trust ranked first out of 17 constituents over both three and five years, with NAV total returns of 84.3% and 189.7% respectively—substantially ahead of the peer group median of 17.9% and 60.3%.
The Trust’s discount to NAV, which existed at the point of Redwheel’s appointment, has closed entirely and now trades at a premium. In September 2025, Temple Bar achieved a significant milestone by reaching a market capitalisation of £1 billion for the first time in its history.
Despite the strong performance this year, managers believe the UK remains undervalued, suggesting further opportunity for investors.
Commenting on their commitment to undervalued UK shares, Ian Lance and Nick Purves, co-portfolio managers, Temple Bar, said: “We believe that low valuation usually precedes a period of above average returns. Today the UK equity market appears to be very undervalued relative to its long-run history and other equity markets and, within the UK, the dispersion between value and growth is close to its widest point for fifty years. Both factors suggest that the Trust can continue to enjoy strong returns as M&A, share buybacks and investors recognising their overexposure to the US continue to catalyse this value.
“Recent negative sentiment towards the UK has resulted in UK listed stocks being valued at a significant discount to their overseas listed peers for no reason other than they happen to be listed in the UK. This has also seen corporate buyers – taking a longer-term view – stepping in to take advantage of this and was reflected in the trust’s portfolio where several holdings have fended off bids.”
According to the AIC, the UK stock market comeback has boosted the performance of the UK Equity Income investment trust sector, which has returned 14% over the last year, an impressive 79% over the last five years and 105% over ten years.”
Taylor Wimpey reports softer sales activity amid market uncertainty
Taylor Wimpey has reported weaker trading in the second half of 2025 in a trading statement littered with the words ‘uncertainty’ and ‘challenging’.
Shares in the UK’s third-largest housebuilder fell by over 3% on Wednesday, recording a net private sales rate of 0.63 homes per outlet per week between 30 June and 9 November.
This is a step down from 0.71 in the same period last year. The cancellation rate held steady at 17%.
For the full year to date, the sales rate stood at 0.72, marginally down from 0.73 in 2024. The order book has softened to 7,253 homes valued at approximately £2.116 billion, compared with 7,771 homes worth £2.214 billion a year earlier. The falling order book will be a concern for investors.
“Taylor Wimpey’s latest update shows that the autumn selling season has cooled. Sales have dipped as affordability pressures bite once more and whispers of property tax hikes in the November Budget spook potential buyers,” said Mark Crouch, market analyst for eToro.
Underlying house prices remain broadly flat. Build cost inflation is expected to stay in the low single digits for 2025.
Taylor Wimpey said it continues to expect full-year UK completions and group operating profit to meet previous guidance. The firm aims to close the year operating from 210-215 outlets.
“Taylor Wimpey’s sales momentum slowed in the third quarter, as uncertainty ahead of Rachel Reeves’ Budget later this month has been weighing on the housebuilding market,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“Unsurprisingly, buyers are holding off from signing on the dotted line in case the Chancellor’s announcement brings beneficial tax changes to property buying. With Christmas hot on the heels of this delayed Budget, disincentivising people to move during the festive period, there’s unlikely to be much of a pick-up in sales activity until the new year.”
Why investors are choosing buy-to-let in Manchester and London
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While headlines suggest that landlords are exiting the market, the data tells a different story: for those with the capital and conviction to stay in, UK buy-to-let is entering a golden period of scarcity-driven returns.
The fundamentals appear stark. Rental stock sits 23% below pre-pandemic levels, with new listings at their lowest point in 2025.
Yet tenant demand remains structurally elevated as first-time buyers struggle to get a foot on the ladder and new builds lag behind demand.
This supply-demand imbalance is driving rental growth that outpaces most asset classes: outside London, rents hit £1,385 per calendar month in Q3 2025, up 3.1% annually, while London commanded £2,736, up 1.6%.
For investors with access to prime opportunities, Manchester and London rank among the UK’s most attractive buy-to-let propositions.
Manchester: Yields That Actually Work
Manchester ticks many boxes for investors. Manchester has high yields backed by robust fundamentals and favourable demographics. Average gross rental yields are 6.3%, nearly a full percentage point above London’s 5.7%. Some postcodes in M14 (Fallowfield) push past 7-8%.
The city’s appeal is structural, not cyclical. A private rental sector serving 62% of residents creates deep, stable demand. Meanwhile, capital growth accelerates through regeneration schemes around Piccadilly Mayfield, MediaCityUK and Northern Quarter, driving both rental appreciation and asset value gains.
Entry costs remain attractive. Average property prices are around £231,402, with rents of £1,675/month, delivering yields of around 7%. Manchester’s combination of strong employment, major university populations, and connectivity positions it as a regional powerhouse. As part of the North West’s £1,241 average rent market (up 5.1% annually, yielding 7.4%), it outperforms most UK regions.
London: Capital Preservation Meets Income
London’s 4.3% gross yields tell only part of the story. What investors buy here is long-term capital appreciation underpinned by global demand and constrained supply.
With average rents at £2,736, London remains a wealth-preservation vehicle, with income generation as a secondary benefit.
The capital’s tenant pool is unmatched. London continues to benefit from international professionals, corporate relocations, and deep liquidity. This creates resilience that regional markets can’t compete with. For investors prioritising capital security and portfolio diversification, London remains essential despite compressed yields.
The Macro Backdrop: Why Now?
Three converging factors make this moment significant:
1. Mortgage markets have normalised. Gross lending reached £24.9bn in September, with purchase approvals (65,900) now exceeding remortgaging for the first time since 2022. Average rates on new mortgages fell to 4.19%, the lowest since January 2023. The market has absorbed higher rates, and now income growth is restoring affordability.
2. Landlord ‘exodus’ creates opportunity. One-third of landlords have considered exiting, citing stamp duty increases, potential National Insurance changes, and the Renters’ Rights Bill. Even if this does happen, their departure will create an opportunity for you; reduced competition means higher yields, driven by lower supply and resilient demand.
3. Rental affordability is stretched but stable. Renting now consumes 44% of average wages, up from 40% five years ago. Crucially though, wage growth outpaces rent increases suggesting a sustainable equilibrium. First-time buyer deposits have risen from £40,326 to £45,374, which is keeping many in the rental market for longer. Changes to the modern lifestyle and opportunities in the capital and regional cities encourages ‘generation rent’ to stay in the city centre for longer before settling in the suburbs.
Regional Cities: The Hidden Alpha
Beyond Manchester and London, investors should monitor Birmingham (£1,247 pcm, 6.8% yield), Leeds (£1,093 pcm, 7.2% yield), and Nottingham (£1,208 pcm, 6.7% yield). These cities combine affordability, employment hubs, and student populations to generate returns that outstrip London while offering more favourable entry points than Manchester.
The Bottom Line
Buy-to-let isn’t broken; it’s consolidating into the hands of professional investors who understand supply dynamics and can access capital efficiently. With rental stock 23% below pre-pandemic levels, new listings at annual lows, and yields in Manchester approaching 8%, the case for strategic deployment is clear.
The Renters’ Rights Bill will likely accelerate landlord exits over the next 12-18 months, tightening supply further and driving rents higher. For investors positioned now, that’s not a threat; it may prove to be a strong tailwind.
The question isn’t whether to invest in UK buy-to-let. It’s whether you have access to the right opportunities.
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FTSE 100 surges to record high as UK unemployment data hits pound
The FTSE 100 surged on Tuesday for a second straight session as London was propelled higher by a US tech rebound and hopes of an interest rate cut in December.
Disappointing UK jobs data has almost made an interest rate cut in December a near certainty after budget fears sent the UK unemployment rate to 5%.
The FTSE 100’s inverse relationship with the pound kicked in, and London’s leading index surged 0.9% to a fresh record high.
“The FTSE 100 made new record highs on Tuesday, taking its cue from a strong rebound on Wall Street and the added tailwind of sterling weakness,” said AJ Bell investment director Russ Mould.
UK markets also benefited from an encouraging session for US stocks last night. AI jitters last week are turning out to be a blip. We’ll need a couple more positive sessions for this to be confirmed, but surging recoveries for Nvidia and Palantir overnight demonstrated that demand for the world’s leading AI stock is alive and well.
Vodafone was among London’s top performers after saying it would hike its dividend amid positivity in the German market.
“Vodafone put on a confident face this morning, unveiling a new progressive dividend policy and guiding to the top end of FY26 expectations – the first signal that its self-declared growth phase is gaining traction,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“With pressure mounting ahead of the print, the return to service revenue growth in Germany marks a meaningful step in turning around its largest market.”
Housebuilders inevitably enjoyed increased chances interest rate cut, with Berkeley Group rising 2%.
“The chances of a December rate cut have risen throughout the morning following the unemployment figures, and now stands at 86%,” explained Chris Beauchamp, Chief Market Analyst at IG.
“This expectation of looser policy has given a boost to housebuilder shares – Berkeley, Barratt Redrow and Persimmon are all higher this morning, notably head of figures from the latter two this week.”
Although the FTSE 100 posted strong gains on Tuesday, it still has its fair share of losers.
Croda was the top faller, down 3%, while supermarkets felt the pressure of a deteriorating UK jobs market. Tesco, Sainsbury’s and Marks & Spencer were all lower by 2% at the time of writing.
AIM movers: Team Internet strategic review and Shearwater declines despite strong results
A sharp jump in trading volumes has pushed up the share price of Empyrean Energy (LON: EME) by 91.7% to 0.115p. Trading levels are set to exceed any other day in the past year.
Image Scan (LON: IGE) has won a £500,000 contract from a south east Asian customer. It is for ThreatScan portable X-ray systems and delivery will be in the year to September 2026. Last week, there was a positive trading statement showing a stronger second half, and the order book was worth £4.7m at the end of September 2025. The share price increased 13.8% to 1.65p.
Blue Star Capital (LON: BLU) investee company SatoshiPay, says that its Vortex fiat-to-crypto infrastructure platform has onboarded its first major API partners. It has passed $2m in cumulative transaction volumes. The share price rose 11.4% to 12.25p.
Shuka Minerals (LON: SKA) has received an initial tranche of $300,000 of the promised $1.35m cash injection by Gathoni Muchai Investments to pay the cash consideration for the acquisition of Leopard Exploration and Mining, owner of the Katwe zinc mine in Zambia. The rest should be received by the end of November. The share price rebounded 11.1% to 5p.
Team Internet Group (LON: TIG) has launched a strategic review of divisions. The domains, identity and software division is believed to be worth more than the current market capitalisation of the group. However, the search division is doing worse than expected and management’s confidence that trading levels can be rebuilt following Google changes. Zeus has cut its 2025 pre-tax profit forecast from $49.4m to $29.7m after reducing expectations for search and comparison divisions. The latter has been hit by lower volumes. Net debt is expected to be $99.6m at the end of 2025. Zeus has a sum of the parts valuation of 91.1p/share. The share price recovered 8.72% to 46.75p.
FALLERS
Mercantile Ports & Logistics (LON: MPL) says that its debt has been assigned to Prudent ARC and it has made an offer to redeem that debt. The share price fell a further 23.1% to 0.5p.
Promotional products platform operator Altitude Group (LON: ALT) is focusing on higher margin merchanting business and that means revenues will be held back. There has also been softer US demand for services. Full year guidance has been reduced to revenues of $43m and EBITDA of $3.7m, compared with previous EBITDA forecasts of $4.5m. The share price declined 14.5% to 20p.
Cyber security software and services provider Shearwater Group (LON: SWG) had a strong financial performance in the 15 months to June 2025, but this appears to have been overshadowed by accounting adjustments. However, the underlying momentum of the business is still good. Annualised figures show a rise in revenues from £24.4m to £31.6m, while EBITDA doubled to £1.8m. Revenues would have been slightly higher before a change in accounting policy spreading some income over the length of the contracts. The new finance director has reassessed intangible asset valuations and this led to an £11m write-down, but this is not relevant to current trading. Cavendish forecasts a 2025-26 pre-tax profit of £1.1m. The share price lost 17.9% to 50.5p.
Diagnostics developer Abingdon Health (LON: ABDX) increased full year revenues by two-fifths to £8.6m, but the loss increased from £1.4m to £3.5m. Net cash was £1.17m at the end of June 2025 and after the period £3.2m was raised. The loss should be much lower this year as the benefits of US expansion come through. The share price slipped 7.74% to 7.75p.
Pulsar Helium (PLSR) has completed drilling of the Jetstream #3 appraisal well at the Topaz project in Minnesota and penetrated the entire interpreted helium-bearing interval. There is a strong pressure reading that is higher than the previous two wells. Flow testing will follow. Drilling has started at Jetstream #4. The plan is to update the Topaz resource. The share price deceased 3.9% to 37p.
Newbury Racecourse: building income streams beyond the track
Shaun Hinds, CEO of Newbury Racecourse, joins Jeremy Naylor as part of the UK Investor Magazine Aquis Showcase Series running up to the event on 19th November.
Please register for the Aquis Showcase here using the code ‘UKINVEST’ for a 20% discount
Newbury Racecourse, established in 1904, has been publicly listed since 1982.
The venue hosts 28 horse racing fixtures annually across National Hunt and Flat racing, supplemented by additional meetings allocated by the British Horseracing Authority. Beyond racing, the company runs conferences, exhibitions and events, whilst also operating The Rocking Horse Nursery (accommodating over 150 children up to age four) and a 36-bedroom on-site hotel.
It also owns the freehold on 13 apartment blocks around the track.
4imprint exceeds analyst expectations despite challenging backdrop
4imprint says it’s on track to exceed analyst expectations for both revenue and profit despite challenging macro conditions.
The promotional products giant expects full-year revenue of at least $1.32 billion, hitting the high end of current analyst forecasts. Even more impressive, profit before tax is projected to reach at least $142 million, surpassing the upper end of analyst predictions.
Revenue declined 2% in the first 10 months compared to 2024, as order intake remained steady at just 3% below prior year levels, while average order values held firm.
Existing customer orders remained flat year-to-date, reflecting strong retention rates that demonstrate customer loyalty. However, new customer acquisition faced headwinds, with new customer orders down 13% – a trend that began in the first half of the year.
Gross profit margins remained just below 33% with product cost increases from tariffs are being implemented more gradually than initially expected, while the marketing mix provides valuable flexibility.
This margin strength enabled 4imprint to maintain double-digit operating profit margins throughout the 10-month period.
UK unemployment jumps to 5%
A Bank of England rate cut looks all but nailed on in December after the UK labour market showed further signs of strain in September, with the employment rate edging down to 75.0% from 75.1% in August.
Unemployment rose more sharply than anticipated, reaching 5.0% against market expectations of 4.9% and the previous month’s 4.8%. Economic inactivity remained stubbornly high at 21.0%.
Wage pressures continued to ease. Annual total earnings growth slowed to 4.8%, down from 5.0% in the previous three-month period and below the 4.9% forecast. The deceleration in pay growth will be closely watched by the Bank of England as it weighs future interest rate decisions.
“There will be no pre-budget comforts that can be taken from today’s employment data as the un-employment rate hits its highest level since May 2021. This self-inflicted wound rather than heeling continues to weep,” said Isaac Stell, Investment Manager at Wealth Club.
“Not only has the unemployment rate risen, but wage growth, albeit still rising ahead of inflation continues to shrink. There can be no doubt that the fiscal levers pulled by the Government and the Chancellor have significantly contributed to these figures and the responsibility lies at their feet.”