New Healthcare Market Review reveals elderly personal care sector creating exciting investment opportunities and defying Brexit

New Healthcare Market Review reveals elderly personal care sector creating exciting investment opportunities and defying Brexit

by Eleanor United Kingdom
  • Personal care sector occupancy at 91.7% in H1 2016 (Colliers International)
  • Long-term stability and excellent prospects are a win with investors (Properties of the World)
  • Income up and costs down across personal care sector (Colliers International)

The newly released Colliers International Healthcare Market Review 2016 has provided the very latest insights into the healthcare property and business sector, revealing that the personal care sector performed well over the past year, with total income levels reaching a new high while costs have fallen.

Rising occupancy levels of personal care services for elderly people were behind the trend, with the elderly care sector seeing occupancy rates of 91.0% or higher for all types of provision in H1 2016.

Average weekly fees were also up for the personal care sector, rising to £536 per week in H1 2016 from £526 per week in H2 2015. At the same time, payroll costs fell from 51.0% of total revenue in H2 2015 to 50.7% in H1 2016 and non-payroll costs dropped from 17.1% to 17.0%.

Jean Liggett, Founder and Managing Director of Properties of the World, comments,

“The personal care sector is attracting keen interest from investors thanks to its long-term stability and excellent future prospects. The UK has an ageing population and thus healthcare properties are becoming an increasingly popular asset class.

“As the Colliers Healthcare Market Review points out, the statistical stability of such investments is incredibly appealing. The industry is growing and adapting to the changing needs of the population and investors are in a position to take full advantage of the new breed of provision that is coming online.”

Wagon’s Way near Sunderland, which is available for investment from £58,500, is representative of this new style of elderly care provision. The 58 bed, high quality, nursing and dementia specific care home is the latest offering from a developer that is meeting and exceeding Care Quality Commission (CQC) requirements across its extensive provision.

Already open and operational, Wagon’s Way provides a modern twist on vintage décor, along with a host of touches designed to make life easier and happier for residents, such as cherished photographs on key boxes by bedroom doors rather than impersonal (and easily forgettable) numbers.

The dual appeal to investors in developments such as Wagon’s Way lies in the profitability of the investment (circa 8% NET rental returns for 25 years) and in the ethical considerations. The innovative investment model means that everyone wins: the investor, the residents, their families, the community, the care professionals and the CQC. It’s investment that really does make a difference.

While the impact of the UK’s Brexit vote is still very fresh, the Healthcare Market Review certainly points to healthcare investments standing up well, particularly when compared with other sectors. The report concludes that, “the long-income prospect and underlying stability of demand remain intact.” As the report observes, the UK’s political maneuverings do not affect the infrastructure required to meet the needs of its ageing population, and therein lies the final piece of the puzzle, making healthcare sector investments one of the most attractive asset classes over the longer term.

For further details visit www.propertiesoftheworld.co.uk, email info@propertiesoftheworld.co.uk or call the team on +44 (0)20 7624 5555.

The North heads South to MIPIM en masse to corner new real estate business opportunities

The North heads South to MIPIM en masse to corner new real estate business opportunities

by Eleanor United Kingdom , ,
  • Manchester offering strong returns on stylish homes (Surrenden Invest)
  • Northern cities providing something ‘a cut above the average’ (Properties of the World)
  • Liverpool flagged as 2017 property investment hotspot (Property Frontiers)

The much celebrated MIPIM UK property industry extravaganza will take place at London’s Olympia from 19-21 October 2016.

Sir Howard Bernstein, Chief Executive of Manchester City Council, will be among those attending, along with a strong contingent of his peers from the North of England. The Northern team will be attending en masse in order to show that the North remains open for business, despite the ongoing distraction of Brexit. Bernstein comments,

“MIPIM is the first major real estate event since the EU referendum and I’m looking forward to reinforcing the importance of Manchester and the north to the UK economy. The event will be a great opportunity to discover the diverse investment and development opportunities the north has to offer.”

Manchester is certainly generating some interesting real estate investment opportunities at present. In a prime position in the heart of the city, Halo epitomises the kind of modern, luxury development that investors are keen to be profit from and tenants are keen to rent. The high profile development boasts 66 stylish apartments, with projected 6.2% NET yield through Surrenden Invest.

Manchester, along with Birmingham and London, sits among Europe’s 20 largest cities, according to Centre for Cities. Investment opportunities there are attracting both domestic and international interest. Jean Liggett, CEO of visionary property investment consultancy, Properties of the World, offers several opportunities to investors keen to pick up northern real estate. She agrees that contemporary developments with a luxurious feel are prime targets for investors, commenting,

“Northern UK cities offer rich pickings right now when it comes to real estate opportunities. Buyers are looking for something a cut above the average in excellent locations. Popular properties are those that are well located for both local employment opportunities and retail and leisure amenities. Salford Quays is precisely the kind of area that investors can’t get enough of.”

The popularity of design-led apartments such as those at The Element add weight to Liggett’s words. The stylish homes offer urban convenience at every turn, from their prime Salford Quays location to the availability of on-site parking – an important consideration that is often bypassed by such central city developments. Apartments at The Element start from £112,970 and offer 7% NET assured returns for two years.

But it’s not just Manchester’s real estate that has got investors so excited about opportunities in the North. Ray Withers, CEO of Property Frontiers, explains,

“We’re seeing a lot of interest in the property investment opportunities available in Liverpool right now. Liverpool is a growing city and centrally located accommodation that offers something unique is winning over a lot of interest from investors. Liverpool’s prices are still a little below their 2007 peak and a lot of those in the industry are flagging it up as an investment hotspot for 2017.”

Withers cites Parker Street Residences as an example of the kind of property that stands out from the crowd. Located within the central, L1 postcode area, the development has blended the exterior façade of the former Reece’s Ballroom with an ultra-contemporary interior. As well as a low entry point (studios are priced from £69,950 for cash buyers) and yields of 8% NET, investors can enjoy owning their own piece of Beatles history, as Reece’s was the location of John Lennon’s first wedding reception.

International and local investors flock to MIPIM UK every year for just these kind of investment opportunities and the message at the October show from the North of England will be clear: the real estate sector in the North is alive and well.

For more information, please contact:

Surrenden Invest: +44 203 3726 499 or www.surrendeninvest.com

Properties of the World: +44 20 7624 5555 or www.propertiesoftheworld.co.uk

Property Frontiers: +44 1865 202 700 or www.propertyfrontiers.com

Hotel hotspots for 2017 – what’s around the corner for the UK’s hotel sector?

Hotel hotspots for 2017 – what’s around the corner for the UK’s hotel sector?

by Eleanor United Kingdom
  • Regional hotels to hit record-breaking 77% occupancy in 2017 (PwC)
  • Brexit creating double boon for UK hotel sector (Properties of the World)
  • 10.45 million overnight trips made by Brits to Wales in 2015 (Welsh Government)

Britain’s hotel sector has been riding the wave of the Brexit vote for three months now, with domestic staycations on the up and many European travellers rushing to the UK as a result of finding their euros are suddenly go a lot further.

But will the trend last? Are hotel investments a wise move as we head into 2017?

The latest industry figures and projections certainly seem to indicate that the hotel sector – at least in certain areas – is looking forward to a strong 2017. PwC has projected record occupancy levels for regional hotels over the year ahead and revenue per available room (RevPAR) of 2.3% even in the face of the anticipated economic slowdown. An increase in domestic travel and the weak pound has led the company to predict a record occupancy of 77% for provincial hotels during 2017.

Figures from ContentSquare highlight the increased European appetite for British hotels, one of the driving factors behind the rosy outlook for the sector. Their analysis has shown that the average spend on holiday packages to the UK booked through online travel agents by Europeans following the Brexit vote rose by 38%, while searches for UK destinations increased by 10%.

The UK hotel sector is certainly working hard to respond to the increased demand. STR’s August 2016 pipeline report revealed that the UK has more hotel rooms under construction currently than any other country in Europe. Meanwhile figures from AM:PM have shown that the number of new hotel rooms opening in the UK in 2016 looks set to reach its highest level for four years.

Jean Liggett, Founder and Managing Director of Properties of the World, which is offering hotel room investments at Caer Rhun Hall Hotel in Wales from £75,000, emphasises the dual role that Brexit has played in boosting the sector,

“The impact of Brexit has been a double boon for the UK’s hotel industry. European visitors are keen to head to the UK while it’s cheaper for them to do so and cautious domestic holidaymakers are opting for staycations while they wait for the Brexit dust to settle. Spikes in demand from two different sources are always good news and the hotel sector, particularly in the regions, is looking forward to a strong year ahead in 2017.”

The first rooms at the stunning, grade II listed Elizabethan-style Caer Rhun Hall are due to come online in 2017, with investors able to choose from 14 room types with returns of circa 10% per annum. The lack of stamp duty on hotel room investments has made this a popular asset class, particularly as the UK’s stamp duty changes earlier this year made buy-to-let investment a less profitable venture than once it was.

Wales is certainly a popular destination for staycation-ers in the UK. British residents made 10.45 million overnight trips to Wales during 2015, 60% of them for a holiday according to government figures, with an associated spend of £1,975 million. Wales also welcomed 970,000 visitors from overseas during 2015, with an associated spend of £410 million.

“Look at it from any angle and hotel investment makes sense right now, particularly regional hotel investment” concludes Properties of the World’s Jean Liggett. “London may be facing declining occupancy and decreasing RevPAR over the coming year, but it’s full steam ahead in the regions for the foreseeable future!”

For further details visit www.propertiesoftheworld.co.uk, email info@propertiesoftheworld.co.uk or call the team on +44 (0)20 7624 5555.

Ethical property investment: Can your money do more?

Ethical property investment: Can your money do more?

by Eleanor United Kingdom
  • Green and ethical retail funds account for £15 billion of UK investment (EIRIS)
  • Ethical investment accounts for around 1.2% of all funds (Investment Management Association)
  • Ethical property investment set to go mainstream as investors no longer need to balance ethics with their bottom line (Properties of the World)

“Ethical investment is not a new concept in the UK, but it could well be on the brink of a revolution that will see a sharp and sudden rise in popularity.”

According to Jean Liggett, Founder and Managing Director of Properties of the World, ethical investment in the UK is long overdue a shakeup.

While investors have had access to ethical funds since 1984, uptake has remained low, at a fairly static rate of around 1.2% of all money invested in funds for the last decade or so, according to the Investment Management Association. Indeed, figures from sustainable investment research specialists EIRIS released in 2015 indicate that total investment in green and ethical retail funds in the UK was just over £15 billion: a drop in the ocean when one considers the overall investment picture.

But this formerly ‘niche’ form of investment could be about to hit the mainstream. Jean Liggett explains,

“A lot of ethical investment opportunities relate to particular causes or to the environment. That’s a great idea, but it relies on the investor being interested in those particular causes over and above the attractions of making money elsewhere.

“What we’re seeing now – and where Properties of the World is seeking to lead the way – is a new breed of ethical investment opportunity that appeals to a far broader pool of investors. We’re working with regular property investors looking to make their money do more – a stable, profitable investment with ethical benefits included.”

Bricks, mortar and ethics is not a new concept and there have been some notable successes, mainly in the form of companies providing office space for third sector and community organisations, but again the target market was restricted. The beauty of new ethical investment opportunities, according to Liggett, is that they don’t differ from those that are, well, less ethical.

A regular property investor, for example, looks for healthy yields. An investment offering circa 8% NET rental returns for 25 years holds instant appeal. A low price point (say, £58,500) and a developer with established credentials further add to the attractions. Indeed, many investors in the Wagon’s Way care home in northern England don’t even discover the ethical element of the investment until they’ve already been won over by the numbers.

At the same time, investors ‘with a conscience’ are pushing for property investments that stand out from the crowd based on their social or ethical credentials. At Wagon’s Way, the concept is simple: everybody wins. The 58 bed, high quality, nursing and dementia specific care home from Qualia Care Developments is raising the bar for standards of care for elderly individuals with dementia, regularly exceeding the requirements of the Care Quality Commission (CQC – the UK government regulatory body for care homes).

Qualia Care specializes in purchasing purpose-built, completed facilities in the North of England and using private funds to renovate and reinvigorate them. When an investor purchases a room, they buy a 125-year leasehold with a fixed rental. The money enables Qualia Care to renovate to an extremely high standard to make the home available to elderly residents who would otherwise be unlikely to be able to afford such a superb standard of care. The investor wins and so does the resident.

Incidentally, so does the local authority and the government, which is faced with an ageing population and the fact that a longer life doesn’t always mean a better standard of living.

In the area of northern England in which Wagon’s Way is based, one in four people will be aged 65+ by 2050, according to estimates from the Office for National Statistics. That’s an increase of 56.3% since 2012. Meanwhile the Alzheimer’s Society has reported that the 850,000 UK residents with dementia in 2015 is on track to grow to more than 1 million by 2025 and to over 2 million by 2051.

Demand for high quality care is set to continue increasing and the government needs to find new ways to fund it in order to provide dignity for all in later life. The increasing engagement of property investors with the care sector has certainly come at the right time.

“It’s one of those rare moments when everything comes together at once to usher in the start of a new era,” concludes Properties of the World’s Jean Liggett. “We’ve seen the ethical property sector in Australia really flourish over the last few years and now it’s the UK’s time to shine. Let’s shake up the concept of mainstream property investment by showing that every investor can afford to have decent ethics, without it being at the expense of their bottom line.”

For further details visit www.propertiesoftheworld.co.uk, email info@propertiesoftheworld.co.uk or call the team on +44 (0)20 7624 5555.

Car sharing industry revs up with Wembley Park residents in the driving seat

Car sharing industry revs up with Wembley Park residents in the driving seat

by Sophie Evans United Kingdom
  • Average car is parked 96.5% of the time (RAC)
  • Europe boasts largest car share service per capita (World Economic Forum)
  • Car sharing to rise from 2% to 15% of cars on road globally by 2030 (Morgan Stanley)
  • Car membership included as standard at new Wembley Park homes (Quintain)

Ask anyone who knows about the auto-mobility industry and the answer is the same: the future of car sharing is revving up. Figures from the RAC show that the average car is used for six hours per week and stationary for 162 hours. That means that the average vehicle spends 96.5% of the time parked.

McKinsey’s ‘Mobility of the Future’ has highlighted “paradigm shifts in auto-mobility” as a result of tightening CO2 regulations and greater public awareness of the harmful impact of cars on the environment. Figures from Morgan Stanley show that while car sharing worldwide currently accounts for only around 2% of the total cars on the road, it is expected to rise well above 15% by 2030.

Car sharing makes complete sense in big cities, and as the years pass the global trend towards urbanisation means that more and more of us will be living in municipalities. The UN’s World Urbanization Prospects report projects that 66% of the world’s population will be urban by 2050, compared to a century earlier, when the figure stood at just 30%. At the same time, the world’s population has risen from 2.5 billion in 1950 to a projected 9.5 billion by 2050. That represents a growth in urban population from ¾ billion in 1950 to 6.27 billion just a century later.

This rapid urbanisation has given rise to car clubs and membership schemes across the world, and the Asia-Pacific region is leading the trend, with 2.3 million users and 33,000 vehicles, based on World Economic Forum data. However, it is Europe that boasts the largest service per capita, with 31,000 vehicles for the region’s 2.1 million users.

In Europe’s biggest cities, car sharing is increasingly being seen as the ideal solution, particularly by young urbanites. Paul Hogarth, Head of Residential Sales for Quintain, who is behind the range of contemporary new homes at Wembley Park, comments,

“Car sharing is the ideal solution for a growing number of Londoners, which is why we’ve built a membership into the benefits for those buying and renting at Wembley Park. Car sharing means that individuals don’t have to worry about taxing, insuring, servicing or cleaning a vehicle they don’t use that often. This is particularly helpful in an area like Wembley Park, which has excellent transport connections, both in to central London and out to the airports and beyond.

“Car share members have the best of both worlds – they have a modern, clean car in good working order on hand whenever they need it, but none of the hassle that goes with car ownership and maintenance.”

Owners at Quintain’s one, two and three bedroom Alto Apartments in Wembley Park, which are available to purchase from £450,000, and renters at Tipi, Wembley Parks’ all-inclusive professional rental service with apartments available from £1,840 pcm furnished (utilities and super-fast broadband included), are eligible for two years’ free membership of Zipcar, along with £25 of free driving credit (rates are from £6 per hour). Zipcar is the UK’s largest car sharing network, with 1,500 cars in London alone. Whether buying an Alto apartment or renting with Tipi, the nearest Zipcar is located on-site, making it ideal for residents who need a car for a supermarket run, a trip out to buy furniture or a weekend away.

According to Zipcar’s findings, the average member saves £3,162 per year (£264 per month) compared to those who own their own vehicle, and Wembley Park residents can save a further £59.50 per year thanks to the two year free membership that comes with their home.

Zipcars are ideal for busy Londoners looking to move freely around the capital. The Wembley Park offer includes fuel, insurance and the Congestion Charge, as well as up to 60 miles per day free of charge, which is more than enough to cover a day of driving around London running errands.

Nor are shared vehicles the only benefit to life at Wembley Park. At both Alto and Tipi, shared facilities have been built into the development in order to enhance community spirit. At Alto, residents benefit from a private water courtyard, fully equipped gym, studio room and spa treatment rooms. Meanwhile, Tipi offers two shared social spaces; The Nest and Deskhouse, which allow residents to relax together over a game of pool, the latest match on Sky Sports or a barbecue on the outdoor terrace.

For more information on Alto Apartments, visit www.alto-apartments.com or call the on-site Savills sales team on +44 20 3151 8601.

For more information on Tipi or to book a viewing, visit www.tipi.london or call 020 3151 1927.

Notes to Editors

 

About Tipi @TipiLondon

Tipi, the all-inclusive professional rental service, is a subsidiary of Quintain, the London focussed property development specialist and the team behind Wembley Park. Tipi is a ‘Build to Rent’ or Private Rental Sector (PRS) management company which builds, manages and leases contemporary apartments to customers without charging agents’ fees. Unique to Tipi is that Quintain owns and operates the wider Wembley Park estate which ensures the environment surrounding the apartments is safe, controlled, clean and well connected.

Tipi’s first PRS buildings, Montana & Dakota offer brand new 1, 2 & 3 bedroom apartments with rents inclusive of all utility bills and superfast broadband. Most apartments boast a balcony and all benefit from access to an acre of private gardens. 24 hour concierge and night security meet customers’ everyday needs and additional services can be added to tenancy agreements such as secure underground parking, cleaning, laundry and dry cleaning services.

Two lounges are available for Montana & Dakota residents to use and include superfast 100 Mb/s broadband, Sky TV and Sky Sports and later this year a gym and cinema room will open within the building. Apartments are available to rent and move in immediately.

For more information on Tipi or to book a viewing, visit http://www.tipi.london/ or call 020 3151 1927.

 

About Wembley Park New Homes @WembleyPark /About Alto @WembleyParkHome

 

Wembley Park is the development by Quintain which is transforming the 85-acre (34 hectare) area around Wembley Stadium and The SSE Arena, bringing new shopping, leisure facilities, homes and public spaces to create a major new destination and neighbourhood for London.

Alto Apartments is the current phase of Wembley Park. Alto’s striking towers set a new benchmark for sophisticated urban living, reaching 19 storeys high and offering stylish one, two and three bedroom apartments. Most apartments have their own private outdoor space or a balcony and are finished to the highest specifications, with designer kitchens, bespoke bathrooms and generous living and storage space.

The final phase of Emerald Gardens is also currently for sale. Set in nearly an acre of landscaped gardens, the 475 one, two and three bedroom apartments are spread across seven buildings. The development includes a gym (opening autumn 2016), 24-hour concierge, private cinema and residents’ club room. The majority of apartments enjoy their own private patio, balcony or terrace.

Wembley Park Boulevard and Arena Square are some of the new public spaces open for visitors and residents to enjoy, along with a new all-weather playpark.

Wembley Park is extremely well connected with two overland train stations (nine minutes to Marylebone), two tube stations (20 minutes to the West End) and excellent road links to motorways including the M1, M40 and M25. There are also over 3,000 on-site parking spaces.

For further details, visit:

Collegiate AC and Shuman Capital launch €300 million European Student Living Fund

Collegiate AC and Shuman Capital launch €300 million European Student Living Fund

by Charly United Kingdom
  • Student accommodation market worth US$200 billion globally (JLL)
  • New European Student Living Fund to support accommodation development in European centres of academic excellence
  • Best in class UK accommodation model to be rolled out across Europe (Collegiate)

Within just a few short years, the student accommodation market has gone from a niche investment opportunity to a mainstream asset class worth around US$200 billion globally, according to estimates by JLL.

In Europe, the UK has been leading the way in terms of how to approach this market, with pioneers such as Collegiate AC rapidly raising standards and expectations when it comes to best in class student housing.

Now, Collegiate AC has joined forces with Shuman Capital in order to launch the €300 million European Student Living Fund, which will support countries across Europe with strong academic credentials to be at the forefront of developing state of the art student accommodation.

Shuman Capital, a division of Stam Europe, will work in partnership with specialist operator Collegiate to exploit the under-supply of appropriate student accommodation in Europe on a sophisticated basis. Stam Europe is a Paris based investment manager operating both funds and separate accounts with Assets under Management of €1, 5 billion.

The €300 million professional investor fund will be invested in procuring assets developed to Collegiate’s product and brand specification, leveraging on Collegiate’s international marketing reach.

Collegiate CEO Heriberto Cuanalo comments,

“Collegiate’s partnership with Shuman Capital marks the dawning of a new era for student accommodation in Europe. The European Student Living Fund will focus on cities known for their academic excellence, working to introduce a step-change to the student accommodation on offer.”

The accommodation assets will typically be a minimum of 350 beds, which will benefit from the full service offering of the Collegiate Prestige five star plus product and service specification. That specification includes a host of luxury features, from on-site cinema rooms and gyms to VIP bars, club rooms and gaming centres, as well as outstanding facilities for studying and superb individual apartments. Hotel-style concierge arrangements will ensure that the quality of the facilities is matched by that of the service available.

Shuman Capital Chairman Michiel Olland comments,

“We are thrilled by the strategic partnership with Collegiate. Their excellent operating skills are matching with our views on managing student accommodation and in line with our investment strategy. This collaboration will clearly add value for the partner investors in the fund.”

As a long-established provider of sophisticated student accommodation, Collegiate is well positioned to take forward the new partnership with Shuman Capital. Collegiate is already a strategic operating partner to a select number of investors and developers on a long term basis, including Fusion Students and other UK, USA and European clients.

Collegiate is also an operating partner of Empiric Student Property plc for part of its portfolio and supported Empiric through its IPO. Collegiate is a long way from the traditional operating companies in the student accommodation sector thanks to its development management support function and strong brand, marketing and product standards.

It is a name already recognised by students internationally and the new European Student Living Fund will support the expansion of the company’s unique brand of excellence to many more cities across Europe over the coming years.

Collegiate CEO Heriberto Cuanalo and Managing Partners Michiel Olland, Knut Riesmeier and Guy Remans of Shuman Capital Shuman Capital will be attending the Expo Real International Trade Fair for Property & Investment held in Munich, Germany on 4-6 October 2016 and are available to meet with the media and / or other interested parties.

For more information or to arrange a meeting at the Expo Real event, contact Collegiate on +44 1235 250 140 or visit www.services.collegiate-ac.com.

“Immediate lift” of Oxford property prices to result from new direct high speed rail connection with London

“Immediate lift” of Oxford property prices to result from new direct high speed rail connection with London

by Eleanor United Kingdom
  • Direct high speed London-Oxford connection to launch on 12 December (Chiltern Railways)
  • Journey time of 60 mins will “make Oxford an even better proposition for commuters” (Property Frontiers)
  • 100,000 new homes required across Oxfordshire by 2031 (Oxfordshire Growth Board)

Oxford-based property expert Ray Withers, CEO of Property Frontiers, has expressed anticipation of an immediate lift in house prices in the city, in light of the news that the new direct high speed rail line between Oxford and London Marylebone will be open and operational from 12 December.

Withers explains,

“The new line will provide an enormous boost to both cities. Everyone in the Oxford area will benefit from improved connectivity and less congestion, and I expect property values in the centre to get an immediate lift as Oxford will be more accessible for those who work near Marylebone/West end.

“We’ve already seen a dramatic upswing in property prices in places like Kidlington near to Oxford Parkway, the most recent station to open on this line and although Oxford has been voted one of the most expensive places to live, I think this will bolster prices further.

“This project promises to make Oxford an even better proposition for commuters and businesses with close links to the capital, but it will also hugely open up central Oxford and the Cotswolds to Londoners to take advantage of the culture and natural beauty on offer here.”

The direct high speed connection between Oxford and London has been eagerly awaited. The railway line took some £320 million to complete and included the opening of Oxford Parkway station in October 2015. The final track installations needed to enable the direct connection to London sought to convert an old branch line into a 100 mph mainline. With the work complete, Chiltern Railway services has been able to timetable the first trains for 12 December, just in time for Oxford’s residents to pop into the capital for a spot of Christmas shopping.

With a journey time of just 60 minutes and two trains per hour, the newly opened line will certainly be an early Christmas present for those living in Oxford and working in London, providing them with an alternative to the oft-congested M40 and A40. The A40 stretch between London and Oxford topped Ultimate Directory’s list of the UK’s busiest roads, alongside the M25. By relieving some of the pressure on the road network, the new train line is tipped to provide a further boost to Oxford’s credentials as a commuter city for the capital (in addition to the city’s own countless charms).

Housing in Oxford is something of a contentious issue. Nobody seems to disagree with the fact that more houses are needed. Oxford City Council’s growth strategy states that 24,000-32,000 new homes are needed between 2011 and 2031, while the Oxfordshire Growth Board has stated that 100,000 new homes are required across the county as a whole in that timescale.

The controversy arises when it comes to planning precisely where to locate those new homes. 14,300 of the new homes needed in Oxford have been assigned to be built in the local authorities surrounding the city, as Oxford itself is struggling to find the space to meet demand thanks to its large swathes of protected land and the need to protect its internationally recognised skyline of ‘dreaming spires,’ as christened by the Victorian poet Matthew Arnold.

The new train line is set to create even more demand for homes in Oxford, with the city expected to return to property hotspot status as a result. House prices in the city have already risen by 27.5% in the past five years, according to Zoopla. With the new train line opening towards the end of this year, homeowners in the city can reasonably expect to look forward to another substantial boost.

For more information, contact Property Frontiers by visiting www.propertyfrontiers.com or calling the team on +44 1865 202 700.

The Midlands Engine meets the Northern Powerhouse

The Midlands Engine meets the Northern Powerhouse

by Sophie Evans United Kingdom
  • Birmingham investing in the future and maximising the potential of HS2 (PM Theresa May)
  • Midlands economy has expanded 30% since the recession (Midlands Engine)
  • Midlands’ devolution set to benefit residents and investors alike (Property Frontiers) 

Birmingham, the UK’s second largest city economy, is going back to its roots and investing in a bright new future. Just as the Industrial Revolution saw the city reshape itself to meet changing times, the creation of the new Midlands Engine is combining with the Northern Powerhouse initiative to boost Birmingham’s credentials and push through a raft of exciting new projects.

Similar to the Northern Powerhouse initiative, the Midlands Engine has been created by the government to boost economic growth across the Midlands. Sir John Peace, the first Midlands Engine chairman, the region’s economy has expanded 30% since the recession and deserves Whitehall’s backing when it comes to shaping a new national industrial strategy as the Brexit process gets underway.

Still almost in incubator stage compared with the Northern Powerhouse, the Midlands Engine is already beginning to draw together the Midlands’ diverse local authorities, local enterprise partnerships and 11.5 million population in order to build a post-Brexit future that serves the region as a whole.

As the region’s leading city, Birmingham is set to enjoy a brighter future as a result of the Midlands Engine. An upgrade to improve the city’s tram system forms part of Sir John Peace’s plans, while foreign direct investment is also pouring in.

Birmingham has some significant regeneration projects planned, with the £900 million investment in the Curzon Street Station area topping the list. The scheme will prepare the area for the arrival of the new HS2 railway network, as part of the Curzon Investment Plan, which will see work take place over the coming three decades, including the creation of several new neighbourhoods.

Prime Minister Theresa May comments,

“I’m delighted that Greater Birmingham is making this investment in the future, working to maximise the potential of HS2 by investing in jobs and housing – and encouraging more business investment.”

At the same time, the chief executives of Greater Birmingham Chambers of Commerce, Marketing Birmingham, Birmingham Airport, MPs and educational leaders have combined forces to petition the Prime Minister to focus on the expansion of Birmingham Airport rather than simply choosing between an extra runway at Gatwick or an extra runway at Heathrow.

Along with travel infrastructure development that is designed to revolutionise the city, Birmingham is focusing on redesigning its neighbourhoods. The vast Birmingham Smithfield project will see the creation of a fantastic, 21st century market area that will inspire a new generation of traders to honour the city’s ancient retail tradition.

Housing projects are also underway across the city, with investment blending government funds with those of domestic and overseas investors. As an important part of the Midlands Engine, Birmingham is set to benefit from the £1.1 billion promised by Whitehall for the West Midlands Combined Authority as part of the Midlands’ devolution process. The first £36.5 million has just been transferred.

Meanwhile overseas investors are also keen to take an interest. Developments like The Divine Collection, which offers standout buy-to-let apartments in a top location in Digbeth, one of Birmingham’s most popular areas, have attracted keen interest from foreign investors looking for a healthy investment prospect in the UK housing sector.

Ray Withers, CEO of Property Frontiers, which is presenting the Divine Collection to the market from £165,000, comments,

“The benefits of the Midlands Engine will be widespread. This is an exciting initiative that can both follow in the footsteps of the Northern Powerhouse and learn from that process in order to be even more effective. The devolution of the Midlands is creating excellent opportunities for those who live there and for those who invest there.”

For more information about investing in Birmingham’s Divine Collection, contact Property Frontiers or call +44 1865 202 700.

Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency

Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency

by Charly United Kingdom
  • Investors abandon institutional investment products for more favourable returns on capital (Surrenden Invest)
  • We have seen an influx of inexperienced investors who have never considered property for investment before, one time investors (Surrenden Invest)
  • Buy in the best areas and don’t compromise on location, especially when buying outside of the Capital (Surrenden Invest)

This summer, savers across the country witnessed the Bank of England cut UK interest rates to a record low of 0.25%. Will this cause a shift in how people are planning to invest in the near future?

Jonathan Stephens, Managing Director of property consultancy Surrenden Invest, believes the move towards alternative investment opportunities has already begun. He explains,

“With interest rates at their lowest since the Bank of England was founded in 1964, investors are abandoning institutional investment products for others that offer more favourable returns on capital. Just last week I received a letter from my bank informing me that my personal current account would no longer attract interest, the letter then when on to say that my savings accounts would also be subject to review next month. So the big question savers face is where to invest their hard earned cash?”

However, for many this change will mean venturing into unknown territory which can be unnerving for those wanting to make the best decision for their future finances. With the property market not faltering as predicted post Brexit, investors are looking to the buy-to-let landscape for a chance to make to most of their money.

Jonathan continues,

“We have seen a huge influx of relatively inexperienced investors who in most cases have never considered property for investment before. These clients are what we call ‘one time’ investors who, in contrast to our large portfolio clients, are unlikely to be in a position to invest the same levels of capital again. These investors are looking for a one-time opportunity to get into property to secure their financial future.

“My advice is to tread very carefully as there are companies currently exploiting market conditions, promising colossal returns over a relatively short period of time and these are mainly what we refer to as alternative forms of property investment.

“In my experience the best property investments are the simplest ones, if it isn’t broken don’t fix it. So why invest in something which is trying to re-invent the wheel? Our advice is to buy in the best areas and don’t compromise on location, especially when buying outside the Capital.”

Surrenden Invest offer traditional forms of buy-to-let investment across the UK, with stock in the key markets of London, Birmingham, Manchester and Liverpool. They are committed to providing realistic levels of return on their projects.

Jonathan concludes,

“If an investor called us today we would set their expectation at around 6% net rental income and 3%-5% capital growth, with an annualised yield over 5 years upwards of 10% net. Surrenden Invest aims to under promise and over perform; our projections are effectively a worst-case scenario.

“One of the great things about traditional buy-to-lets is their simplicity, therefore it is possible to request all the fixed costs, for example the ground rent, service charge and management fees, and off set those against equivalent apartments currently available to rent on Rightmove or Zoopla. This is a very easy way to find out how realistic the projected returns are.”

For more information, visit www.surrendeninvest.com or contact Surrenden Invest on 0203 3726 499.

Student finances exposed: How do they really spend their money?

Student finances exposed: How do they really spend their money?

by Charly United Kingdom
  • More than half of students find managing money stressful, yet 39% still don’t create a budget (Natwest Student Living Index)
  • Collegiate AC accommodation offers inclusive billing and luxury communal facilities to ease budgeting (Collegiate AC)
  • Student spending prioritises groceries, utility bills and eating out (Natwest Student Living Index)

As the new academic year begins, many students are leaving home for the first time and one of the key lessons they will quickly learn is how to budget. Mastering this particular skill can take some time as students acquire new spending habits in fitting with their university life.

With this in mind, Natwest, in partnership with an independent research company, have produced the Student Living Index report to unearth the true realities of student expenditure, from what is considered essential spending, to the real financial impact of socialising and the true cost of students’ hobbies and interests.

Based on data from 2,500 students living in 25 popular university cities across the UK, the enlightening research reveals that 52% of students admit to finding money management stressful. However, a substantial 39% are still not using any form of planning or budget when it comes to managing their money.

Heriberto Cuanalo, CEO of the leading provider of luxury student accommodation in the UK, Collegiate AC, explains the importance of budgeting and how a modern student property can help,

“A key aspect of planning for university life is understanding your finances and creating a budget by which to stick to on a week by week basis. Every student budget will vary depending on individual circumstances and it is advisable to create your own to include personal requirements, estimating weekly expenses as you go.

“Whilst an important skill to learn, financial planning when you have left home for the first time can be challenging and this is where modern purpose built student accommodation can help. At Collegiate AC, not only are our properties close to university ensuring that money is saved on travel, we also provide extra amenities included in our billing. This can help reduce day-to-day expenses whilst enhancing the living and studying experience: this is the future of university living.”

According to this year’s Student Living Index report, students still spend more per week on groceries than anything else, with utility bills and eating out ranking second and third, swapping places in comparison with 2015’s results.

Monthly utility bills can fluctuate and allowing for this within a weekly student budget can become difficult, especially when unexpected costs occur. In order to eradicate this monetary concern for residents, Collegiate AC properties have utility bills and unlimited Wi-Fi included in the rental price as standard, meaning that students know where they stand with their finances in advance.

As Cuanalo indicates, alongside inclusive billing, Collegiate AC properties also boast a variety of additional facilities available to residents at no additional cost, again assisting with budgeting and in turn reassuring parents and guardians from afar.

With eating out remaining in the top three of student expenditures, Collegiate AC’s Water Lane Apartments in Bristol benefits from a private dining room that provides residents with the ideal venue to throw their very own dinner parties, eliminating the need to eat out so frequently.

Leeds’ premier student residences, Pennine House, also boasts an array of excellent inclusive facilities. These range from an on-site cinema to provide the ultimate in home entertainment, to the on-site private gym, exclusive to residents and stocked with the latest exercise equipment to allow students to save on expensive gym memberships, a key advantage when calculating a weekly budget.

With Natwest’s latest report also highlighting that, contrary to popular belief, the majority of students’ time is spent studying – approximately 30 hours a week compared to just 8.9 hours spent socialising – Collegiate AC understand the importance of effective study areas in their properties.

With reading and work rooms available for individual study or in a group, Collegiate AC’s high-specification and beautifully designed Saxon Court Apartments, set in Reading, are equipped with study and common rooms, ideal for just this purpose.

For more information, visit www.collegiate-ac.com or contact Collegiate AC on 01235 250 140.