The Connells Group will provide advisory services to Hearthstone’s funds.
Hearthstone will also have access to other areas within the Connells Group such as bulk conveyancing and asset disposals.
Hearthstone’s first fund subject to Financial Services Authority approval will be the UK’s first residential Property Authorised Investment Fund.
As such it will allow investments to be made via ISAs and Self Invested Personal Pensions, either directly or through fund platforms.
David Livesey, chief executive for the Connells Group, said: “This new fund from Hearthstone in partnership with the Connells Group will provide an innovative way for investors to benefit from the long-term growth that we see from property assets even if they are unable or do not wish to purchase buy-to-let property themselves.
Christopher Down, founder and chief executive at Hearthstone, said: “At over £4tn, residential property is the largest asset class in the UK – significantly more than UK equities and commercial property combined.”
“Despite this, there have been no authorised funds in the sector and most investors have been offered little choice other than direct ownership of bricks and mortar.
“Hearthstone has been set up to fundamentally change the way the UK invests in residential property, allowing both retail and institutional investors the same investment options in residential as they have in other asset classes.
“We look forward to our partnership with the Connells Group, which, as a leading player in the agency and services market, will add significant operational resources to those of our existing team.”
