Risk Warning

General Investment Risk

All property investments involve a degree of risk. Market conditions, economic factors, interest rates, and government policy can all affect property values and rental income. You should only invest money that you can afford to lose and should be prepared for the possibility that your investment may decrease in value.

Prop-Pie Is Not Financial Advice

The deal scores, property analysis, yield calculations, and other data provided through the Prop-Pie platform are intended to assist your decision-making. They are not a substitute for professional advice. You are solely responsible for evaluating whether any property deal is suitable for your individual circumstances, financial situation, and risk tolerance.

You should always carry out your own independent research and due diligence before making any property investment decision.

Past Performance

Any examples, case studies, projected returns, or historical performance data presented on the Prop-Pie platform are provided for illustrative purposes only. They should not be relied upon as a prediction or promise of future performance. Market conditions change, and what has worked in the past may not work in the future.

Specific Property Risks

Property investment carries a range of specific risks that you should be aware of, including but not limited to:

• Void periods — Your property may sit empty between tenants, resulting in lost rental income while ongoing costs (mortgage, insurance, maintenance) continue.
• Maintenance and repair costs — Properties require ongoing upkeep. Unexpected repairs such as boiler failures, structural issues, or damp can significantly reduce returns.
• Market downturns — Property values can fall during economic recessions or local market corrections, potentially leaving you in negative equity.
• Regulatory changes — Changes in legislation affecting landlords (e.g. tax relief, energy efficiency standards, licensing requirements) can increase costs and reduce profitability.
• Tenant risk — Non-paying tenants, property damage, or lengthy eviction processes can cause financial loss and stress.

Leverage Risk

If you use mortgage finance (leverage) to purchase a property, your exposure to risk is amplified. While leverage can increase returns when property values rise, it equally magnifies losses if values fall. You remain liable for mortgage repayments regardless of property performance, rental income, or market conditions.

Interest rate increases can significantly impact your mortgage costs and reduce your net returns. You should stress-test any leveraged investment against potential rate rises before committing.

Liquidity Risk

Property is an illiquid asset. Unlike stocks or shares, you cannot sell a property quickly or easily. The process of selling a property typically takes several months and involves legal costs, estate agent fees, and potential price reductions to attract buyers.

If you need to access your capital quickly, property may not be a suitable investment. You should ensure you have sufficient liquid savings and emergency funds before committing capital to property investments.

Third-Party Reliance

Prop-Pie uses AI-powered scoring models, third-party data sources, and automated analysis tools to generate property scores and deal assessments. While we take care to ensure accuracy, these tools are not infallible.

Data from external sources (including property listings, market data, and comparable sales information) may contain errors, inaccuracies, or be out of date. AI scoring models make predictions based on historical patterns and available data, which may not reflect future outcomes or account for all relevant factors.

You should not rely solely on Prop-Pie's analysis when making investment decisions. Always verify key data points independently and conduct your own due diligence.

Regional Risk

Prop-Pie focuses primarily on property deals in the North East of England. While this region offers attractive yields and affordable entry prices, it also carries region-specific risks:

• Economic concentration — Local economies may be dependent on specific industries or employers, making them vulnerable to sector-specific downturns.
• Population and demand shifts — Changes in local demographics, employment patterns, or migration trends can affect rental demand and property values.
• Regeneration uncertainty — While regeneration projects can boost values, they may also be delayed, scaled back, or cancelled, affecting projected returns.
• Lower capital growth — Historically, the North East has seen slower capital appreciation compared to southern regions, though this is often offset by higher yields.

Concentrating your property investments in a single region increases your exposure to local market conditions. Diversification across regions and asset types can help manage this risk.

Seek Independent Advice

Prop-Pie is designed to help you find and evaluate property deals, but it is not a replacement for professional advice. Before investing, consider consulting:

• An independent financial adviser (IFA) regulated by the FCA
• A qualified mortgage broker for financing advice
• A solicitor for legal guidance on property transactions
• A tax adviser for understanding the tax implications of property investment

Prop-Pie Ltd
Company Registration Number: 16374446
Registered Address: 3b Lockheed Court, Preston Farm Industrial Estate, Stockton-On-Tees, England, TS18 3SH
Email: support@prop-pie.com