Why the staycation market is here to stay

Why the staycation market is here to stay

United Kingdom
  • Fabrik Invest outlines long-term strategy for UK holiday let investment
  • UK staycation spending estimated to reach £7.1 billion this summer (up 22% on 2019)
  • Occupancy forecasting at pre-pandemic levels is essential to success
  • The Hideaway by Liv Lodges showcases long-term potential of holiday let investment

Pandemic-related travel restrictions are driving a staycation boom in the UK, as families turn to lodges, holiday lets, caravans and campsites to enjoy their downtime this summer. Mintel estimates their collective spend over the summer will total £7.1 billion – 22% more than during the same period in 2019.

Investors are also rushing to be part of the trend, but what will happen once international travel opens up again? Is the staycation market really here to stay?

According to the team at Fabrik Invest, it most certainly is.

“There’s an exciting long-term future ahead for UK holiday lets. The current staycation boom has served to focus attention on this type of investment and its advantages. Over the longer-term, holiday lets provide one of the highest yielding types of property investment, while also providing benefits that other property investments don’t, such as 0% stamp duty and Furnished Holiday Let tax breaks.”

Dale Anderson, Managing Director, Fabrik Invest

Understanding the longer-term nature of the investment involves a range of considerations. At The Hideaway by Liv Lodges, for example, forecasts have been based on an average of 65% occupancy throughout the year. This is a pre-Covid occupancy level; many lodge parks are currently operating at 80% occupancy or higher. By basing income projections on pre-Covid levels, investors can be assured that the long-term forecast is a realistic one.

Interestingly, another factor at play is the shift to remote working. While this is something that many employees have had thrust upon them as a result of the pandemic, it’s also a trend that looks to be here to stay. A survey by HR software company Personio earlier in 2021 found that only one in three UK workers had returned to the office at least part-time (compared to 59% of workers surveyed in Europe). This continuation of home-based working means that companies need to find other ways to ensure their employees connect. For many, corporate breaks will be the ideal solution.

“Corporate clients will be a key market for many superior holiday parks over the years ahead. Wellness breaks designed to help employees connect with each other while also enjoying the benefits of the great outdoors have an important role to play in the way we approach a more hybrid office/home working arrangement. Off-season corporate breaks like this will help to raise the occupancy levels of park resorts during times when they would traditionally have been quieter.”

Dale Anderson, Managing Director, Fabrik Invest

The Hideaway by Liv Lodges is well-positioned to serve this growing demand for UK-based corporate breaks. Set in the lush Lincolnshire countryside, on the doorstep of the superb spa and golf facilities at Woodhall Spa, the luxury lodges come complete with their own outdoor space with hot-tub. The Hideaway is also home to an on-site gym, games room with table tennis and pool tables, children’s play area, Xbox and PlayStation room, farm shop, restaurant, bar and coffee bar, while the local area provides walks and trails, boat and bicycle hire, river fishing and more.

Holiday parks will, of course, continue to serve those looking to holiday in the UK. Travel restrictions aren’t likely to be fully lifted for quite some time. Even with the rollout of vaccines, countries are experiencing the pandemic in different ways, with waves of infections rising and peaking at different times. There’s a very long way to go before international travel delivers the freedom and choice that it used to.

“The longer-term nature of travel restrictions means a staycation boom not just for this summer but in all likelihood for next year too, and potentially the year after. Even once restrictions are lifted, we anticipate that many families will still feel reluctant to fly and so will look to take breaks in the UK instead. Add to that those who choose not to fly for environmental reasons and those who can’t or won’t have the Covid-19 vaccine, and so likely won’t be able to fly, and the long-term prospects of the holiday let market here in the UK look very healthy indeed.”

Dale Anderson, Managing Director, Fabrik Invest

For investors currently looking at the holiday lets market for the first time, the Fabrik Invest team advises opting for a property that uses pre-pandemic occupancy levels in its forecasting. This should provide a realistic long-term view of potential yields. Finding an investment that has a reputable management company in place (The Hideaway uses established operator Sykes Holiday Cottages, for example) is also important for those looking for a well-managed, hands-off investment.

Finally, it’s also worth looking at what is offered in terms of personal usage – this is another benefit of choosing a holiday let investment over and above one such as buy-to-let.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

Property in 2022: what are the experts predicting?

Property in 2022: what are the experts predicting?

Spain United Kingdom , , ,
  • House prices set to continue rising, albeit more slowly (Fabrik Invest)
  • Rents will rise too, while Build to Rent models flourish (Housing Hand)
  • Demand for second homes overseas will increase, with an emphasis on space both inside and out (Taylor Wimpey España)

It’s been a rollercoaster couple of years for the property sector, both at home in the UK and overseas. As living with COVID in our midst becomes increasingly routine, what could this mean for property in 2022? From owner-occupiers and renters to investors and second-home buyers, we’ve rounded up expert opinions on what next year has in store.

The UK housing market

According to Dale Anderson, MD of Fabrik Invest, UK house prices should continue to rise during 2022, albeit at a more sedate pace than during 2021. He comments:

“Despite the Stamp Duty holiday no longer being a factor, I expect house prices to continue to rise steadily in 2022, as there is still a fundamental shortage of supply in the UK. The shortage of building materials, and shipping restrictions and disruption in relation to those raw materials, is likely to push prices of new builds up, as well.”

Fabrik Invest’s CEO, Steve Jacob, believes that increased interest from investment funds and institutions will also continue to feed price increases. The entrance of Lloyds Bank into the residential market, with its aim to become the UK’s largest landlord within the next five years, is testament to this trend.

The private rented sector

The shortage of high-quality rental properties is likely to keep pushing rental prices up in 2022, according to Fabrik Invest’s Dale Anderson. James Maguire, Head of Sales and Business Development at UK rental guarantor service Housing Hand, agrees:

“Demand continues to outweigh supply in the UK, which means we can reasonably expect that rents will continue to rise. This is also pushing the expansion of Build to Rent models of accommodation. Once seen as more appealing to younger renters, the potential of these kinds of developments for tenants of all ages is becoming more widely appreciated.”

With interest rates so low, Maguire believes that large investors will see the UK as a great opportunity to see a greater return on investment in 2022, with many of them setting their sights on the Build to Rent sector and on Purpose Built Student Accommodation (PBSA).

In terms of accommodation providers, Housing Hand has seen increased demand of late for faster and more secure onboarding of their tenants – a trend which the company anticipates will be important in 2022.

Overseas property in 2022

A perennial favourite with second home buyers from the UK, Spain is a good yardstick when it comes to appetite for international property. According to Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España, there’s plenty of reason for cautious optimism when it comes to overseas property in 2022:

“We are cautiously optimistic about the performance of the Spanish property market in 2022. 2021 is proving to be a very positive year in terms of property sales and we anticipate that this will continue into 2022, with international buyers keen to snap up high-quality new builds.”

That said, he cautions that there are one or two bumps in the road to watch out for, with the main one being that prices of land, building materials and labour are all rising. That means the cost of building homes in Spain is rising, just as it is in the UK and across Europe. 

In terms of what buyers will want from second homes in 2022, Pritchard flags up the importance of open spaces, terraces, communal areas, flexible spaces and light-filled rooms. With COVID still very much present in buyers’ minds, the desire for space will play a big role, as will the need to spend time outdoors. Properties close to the beach and/or golf facilities are likely to be highly prized in 2022.

More information:

Fabrik Invest: 020 8175 9891, enquiries@fabrikinvest.com or http://www.fabrikinvest.com

Housing Hand: 0207 205 2625 or https://www.housinghand.co.uk/

Taylor Wimpey España: 08000 121 020 (00 34 971 706 972 from outside the UK) or https://www.taylorwimpeyspain.com/

What does Lloyds’ entry into the private rented sector reveal?

What does Lloyds’ entry into the private rented sector reveal?

United Kingdom
  • Fabrik Invest flags up banking giant’s move as hedging against inflation and currency devaluation
  • Bulk property purchases by larger funds and family offices likely to follow
  • Property investment seen as a safe haven in times of economic uncertainty

Lloyds Banking Group has launched a new brand – Citra Living – through which to pursue its aim of becoming the UK’s largest private landlord. The banking giant plans to purchase 50,000 properties over the coming decade. What can we tell from this?

According to the team of financial and property experts at Fabrik Invest, Lloyds’ designs on the private rented sector reveal plenty.

“If banks are buying property, this indicates that they’re hedging against potential inflation and the potential devaluation of the pound. With everything going on in the world, banks and governments naturally had to take into account quantitative easing, which means they’re going to be printing more money to stimulate the economy. It looks like Lloyds is now putting a strategy into action to take advantage of the repercussions of that.”

Dale Anderson, Managing Director, Fabrik Invest

The UK’s record low borrowing rates also come into play, with banks jumping on the bandwagon and investing. Other corporate and larger clients are doing the same, meaning we’re likely to see more larger funds and family offices investing in bulk purchases in property over the months ahead.

According to Fabrik Invest, there are other factors at play as well. MD Dale Anderson flags up cryptocurrencies such as Bitcoin as an example:

“Inflation and monetary value aren’t what they used to be. Cryptocurrencies have given people more control over currencies, and banks less so, so that’s a factor that’s feeding into Lloyds’ move as well. Then, of course, there’s the traditional position of bricks and mortar being a safe haven in times of economic uncertainty.”

As inflation rises and the prices of things go up, individuals and enterprises alike will be looking to invest in bricks and mortar, along with other hard assets such as gold, silver and land. It’s a pattern that has played out many times over recent decades. 

Then there’s the housing market itself to consider. Demand continues to outstrip supply for homes in the UK. As a country, we haven’t been building houses fast enough for years.

“That underlying lack of supply means the property sector is a safe bed for Lloyds. With uncertain economic times on the horizon, we’re likely to see many larger institutions looking to the housing sector to provide solid medium- to long-term investment potential. It’s an encouraging sign for individual investors, as it shows the validity of property investment as a money-making strategy.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

Regional city buy-to-lets are back, as rental growth hits 13-year high

Regional city buy-to-lets are back, as rental growth hits 13-year high

United Kingdom
  • Rental growth outside of London at highest level since 2008 (Zoopla)
  • Fabrik Invest flags up potential of Manchester and other top city locations
  • Combination of rising rents and price growth potential delivering a double win for investors

Property investors are enjoying the ideal combination of rapidly rising rents and continuing capital growth. Property investment firm Fabrik Invest reports that city buy-to-lets are back, with demand strong in Manchester, Preston and other UK urban areas, as renters return to city centres once more.

The firm’s findings are backed up by the latest Zoopla Rental Market Report. The Q2 2021 figures show that, excluding London, UK rental growth has hit a 13-year high, with a sharp rise in demand, particularly in city centres.

“With cities opening up once more and life returning to something close to normal, renters are once more embracing the convenience of the urban lifestyle. The exodus to the country that we saw when the pandemic began is now contrasted by a surge in demand from renters for city centre homes.”

Steve Jacob, CEO, Fabrik Invest

This is excellent news for investors in locations such as Manchester, where rents rose by 1.4% during the last three months. The city is home to a number of exciting new developments, with one of the most notable being Michigan Towers, at Salford Quays. In the midst of the £1 billion MediaCityUK expansion, the homes will provide a superb standard of waterfront living in easy reach of the best that the city has to offer. The 375 apartments are complemented by an on-site gym and cinema.

“Not only are rents shooting up in Manchester, but so too are prices, with an increase of 7.4% in the year to June 2021. This is the ideal combination of circumstances for investors looking to enjoy a healthy regular income as well as solid capital growth potential.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

The North West leads annual house price growth, as Preston delivers for everyone from investors to graduates

The North West leads annual house price growth, as Preston delivers for everyone from investors to graduates

United Kingdom
  • North West saw house price rises of 18.6% in year to June 2021 (HM Land Registry)
  • Preston leading the UK for ROI for landlords (Coulters Property)
  • Structural works now underway at The Exchange in Preston (Fabrik Invest)

The North West is leading UK house price growth once more, with an annual price rise of 18.6%, according to the June 2021 UK House Price Index from HM Land Registry. That compares to an increase of 13.2% for the UK as a whole. The figures come as welcome news to those who have been investing in property in the North West, where developments such as The Exchange in Preston are proving popular.

“The North West is such an exciting region from an investment perspective. Not only has it been performing brilliantly in terms of capital growth and yields over the past year, but it’s projected to continue doing so over the coming five years, with Savills forecasting growth of 28% to 2025. For individual cities with strong credentials within the North West, that growth potential is even higher.”

Dale Anderson, Managing Director, Fabrik Invest

Preston is one such city. In the past couple of weeks, it has been flagged up by Coulters Property as the top city in the UK for delivering the best return on investment for landlords. Property prices there remain comfortably below the UK average, despite the increases of the past year, meaning that investors can enjoy a low entry point in a city where demand for rental homes is high.

Feeding that demand is graduates from the Preston-based University of Central Lancashire, which is currently in the midst of a £200 million investment that is enhancing a range of facilities. Not only is Preston a great place to study, it’s also one of the top cities in the country for graduates, according to a new index from comparethemarket. Preston came in third in the index, only narrowly beaten by Bradford and Carlisle, based on analysis of factors ranging from salaries and available job opportunities to the cost of renting a home.

“Preston is a winner on so many levels. It has this superb talent pool of highly skilled graduates who are feeding the city’s dynamic future. Those graduates and other working professionals are generating plentiful demand for rental homes, and particularly for buildings that are a cut above normal standards, such as The Exchange.”

Dale Anderson, Managing Director, Fabrik Invest

Available for investment through Fabrik Invest, The Exchange will deliver 200 high-quality apartments spread across three buildings, two minutes’ walk from Preston city centre and five minutes from the city’s market quarter. Ranging from one to three bedrooms, the homes are complemented by an on-site gym, residents’ lounge, elegant rooftop garden with superb views, hotel-style concierge and bike storage, making them some of the most appealing residences in the city. In addition, placemaking activity includes several commercial units at ground floor level, with tenants being carefully selected to create a community vibe.

The entire development is positioned to benefit from Preston’s extensive regeneration work and infrastructure development, which has attracted £434 million worth of public funding and £2.3 billion of private investment. Structural works are now underway at The Exchange, which is due for completion during Q3 2023.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

Fabrik Invest reports significant surge in demand for Manchester buy-to-let properties

Fabrik Invest reports significant surge in demand for Manchester buy-to-let properties

United Kingdom
  • 70% of sales in last quarter have been in Manchester
  • Manchester ranked as top investment location by 2020 buy-to-let city tracker
  • North West rated as fastest growing region for productivity in 2020 and for property prices for next 5 years

Property Investment company Fabrik Invest has reported a surge in demand for buy-to-let property in Manchester over the past three months. During that time, a staggering 70% of the company’s sales were made in the city.

“We’ve sold around £8 million worth of property in Manchester in the past quarter and demand continues to be strong. Manchester is ticking all of investors’ boxes right now, whether they’re domestic investors or those putting their money into UK property from overseas.”

Dale Anderson, Managing Director, Fabrik Invest

Why is Manchester such a favourite with investors right now? The city’s property market, obviously, plays a key role in this. According to Zoopla’s June 2021 UK House Price Index, Manchester has enjoyed the third highest price rises in the UK over the past year, with an average increase in value of 7.4% (only Liverpool and Belfast have seen higher rises).

Savills, meanwhile, is forecasting a 28.0% rise in property prices across the North West over the five years to 2025 – a total that no other UK region surpasses.

When it comes to overall property investment potential, Manchester wins outright, with Aldermore’s buy-to-let city tracker, published in late 2020, ranking the city as the best location in the UK for landlords to invest in. The rankings were based on numerous factors, from average rent to local void levels.

Further supporting the case for investment is economic credentials of the North West – and Manchester in particular. According to data from the Office for National Statistics, labour productivity in the North West grew by 4.6% in 2020 (compared to 2019). This is the fastest rate of growth in the UK and well above the national average of 0.4%.

In addition, foreign direct investment (FDI) is pouring into the region, with only Greater London and Scotland attracting more FDI in 2020 than the North West. Manchester, meanwhile, is the UK’s third best performing city when it comes to attracting FDI.

“Manchester is a leading light when it comes to property investment right now. With so much going for it, including strong demand for rental homes and a relatively low entry point – the average property there costs £188,900, compared with £488,600 in London – the city has enduring appeal for investors.”

Matt Harper-Penman, Group Director, Fabrik Invest

Homes in key Manchester locations are, naturally, the most popular with investors. Fabrik Invest is offering one development that’s nearing completion – Manchester Waters – which provides waterfront living just six minutes from the city centre. Michigan Towers, meanwhile, is just getting underway at the heart of the £1 billion MediaCityUK expansion. Premium locations such as these provide precisely what investors are seeking in terms of long-term rental home demand.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

Should you ditch your pension in favour of a property portfolio?

Should you ditch your pension in favour of a property portfolio?

United Kingdom
  • 21% of Brits have no pension (Unbiased)
  • The right properties can provide lifelong income potential (Fabrik Invest)
  • Average UK pension pot is £42,651

Should you be putting money into a pension ready for your retirement or would you be better focusing on building up an alternative income stream, such as from a property portfolio? It’s a question that’s relevant to anyone who is planning for retirement and one that requires very careful consideration. The right decision could make a huge difference to the quality of the retirement in question and there are risks to both strategies.

“Sound financial planning is incredibly important when it comes to retirement, yet so many of us don’t focus on it until quite late in life. Both pensions and property have their attractions when it comes to funding your retirement, so it’s well worth investing time in discovering what will best suit your individual circumstances and plans.”

Matt Harper-Penman, Group Director, Fabrik Property Group

According to recent data from Unbiased, 21% of Britons have no private pension. Meanwhile, according to pension statistics from Finder, the average UK pension pot is just £42,651. The average retirement age is 64.7 years old for men and 63.6 for women, and life expectancy stands at 79.4 years and 83.1 years respectively. This means that £42,651 pension pot will need to last around 15 years for the average man and around 20 for the average woman.

While it’s true that retirees don’t spend as much as working professionals, Which? reports that the average two-person retiree household spends £26,000 per year. That covers the basics and some luxuries (hobbies, eating out and European holidays). Those looking for a more luxurious retirement (buying a new car every five years and enjoying long-haul holidays, for example), spend around £41,000 per year. Clearly, that average pension pot isn’t going to cut it.

Building a property portfolio as a viable alternative to a pension therefore has its attractions. Property can provide a regular income through rent and is also an asset that can be sold, should the retiree need access to a larger amount of money.

It’s an approach that Steve Jacob, CEO of Fabrik Property Group, figured out early on. Steve took out a residential mortgage to buy his first home, as so many people do. However, he very quickly realised that he could do much more with his money by investing it in property instead. As such, Steve sold his home and moved back in with his parents. He began investing in property with the money from the sale and now has a portfolio of 50 properties, worth notably more than the average pension pot.

“Each member of the team at Fabrik Invest is passionate about the potential that property has to provide a long-term, stable income stream. We’re drawing from our own experiences and strategies – and learning from our mistakes – to support our investors to use those same strategies to build their wealth. In many cases, those investors are using property as part of their retirement planning.”

Matt Harper-Penman, Group Director, Fabrik Property Group

The property versus pension debate is one that will continue over many years. Retirees in the UK have greater freedom over how they fund their golden years these days and many are taking an approach that balances their pension with other streams of income. Those just starting to build their property portfolio are often looking for a low entry point, which makes northern cities such as Manchester particularly attractive.

Manchester is home to Michigan Towers, a collection of 375 contemporary apartments and townhouses with on-site gym and cinema. At the heart of the £1 billion MediaCityUK expansion in Salford Quays, the waterside homes have huge appeal when it comes to attracting renters, while the latest Zoopla UK House Price Index shows that Manchester property prices were growing at the second-fastest rate in the UK in May, increasing 7.2% over the past year. Manchester’s average property is now worth £187,800, while the UK average stands at £229,300, emphasising the northern city’s value for money for those looking to start building a retirement-funding property portfolio.

“Manchester is a city with excellent long-term potential in terms of its property market. With a robust economy and ambitious urban development plans, as well as affordable prices, it’s a key city in many property investors’ portfolios – and rightly so.”

Matt Harper-Penman, Group Director, Fabrik Property Group

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

European property investors shun the UK, as Middle Eastern buyers step up

European property investors shun the UK, as Middle Eastern buyers step up

United Kingdom
  • New figures from Fabrik Invest reveal who’s buying property in the UK
  • Buyers from the Middle East, Africa and Asia all profiting from UK property
  • Buyers from continental Europe account for just 5% of those who are buying

Figures from leading property investment firm Fabrik Invest have provided some fascinating insights into who is investing in the UK’s property market right now. In its first year of trading, Fabrik Invest saw investors from 25 countries put their money into UK property, selling over 125 apartments – and all against the backdrop of the pandemic with its travel restrictions and multiple lockdowns.

UK investors accounted for 60% of Fabrik Invest’s total sales during the past year, yet buyers from elsewhere in Europe accounted for just 5%. Instead, it was investors from the Middle East who showed the most appetite for UK property, accounting for 13% of total sales. They were closely followed by investors from Africa, who accounted for 12% of sales, and those from Asia, at 11%.

“It’s been an interesting year to work in property investment, with so many staff having to work remotely and to adapt to using Zoom and other tech. However, what we’ve seen is that there is still plenty of appetite for UK property, as investors seek out a market that is fundamentally stable in both political and economic terms.”

Matt Harper-Penman, Group Director, Fabrik Invest

In terms of individual countries (and excluding the UK), it is South Africa that is leading the charge, accounting for 7% of the total number of apartments purchased through Fabrik Invest over the past year. Next comes the UAE, which accounts for 6% of total investors, followed by Qatar at 5% and Hong Kong at 4%.

The fact that investors come from 25 countries in total emphasises just how attractive the UK property market remains around the world, even if buyers from continental Europe are largely declining to get involved.

The North, in particular, has been drawing in overseas investors over the past year. Developments such as Michigan Towers in Manchester are providing a low entry point, with investors able to take advantage of massive local regeneration schemes that look set to drive up property prices significantly over the next several years. With a premium location in Manchester’s MediaCityUK, which is in the midst of a £1 billion expansion, the luxury apartments of Michigan Towers have been selling fast to investors around the globe.

“With a booming property market and a well-regulated financial system, the UK has a great deal to offer when it comes to property investment. Overseas buyers looking for stable, long-term rental income can find everything they need here, with healthy yields and excellent potential for capital growth. With business having boomed during the pandemic, we’re excited to see what the next 12 months has in store.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit https://fabrikinvest.com/

Forget the Euros: will Spain, Portugal or the UK win the battle of the property champions?

Forget the Euros: will Spain, Portugal or the UK win the battle of the property champions?

Portugal Spain United Kingdom , ,
  • Portugal may be the defending European champion, but how does its property market stand up?
  • Will Spain’s second home credentials win out?
  • Or is UK property still holding its own?  

Euro 2020 excitement is reaching fever pitch, with the first match (Turkey versus Italy) due to kick off in Rome on Friday 11 June. In total, 51 fixtures will be played across 11 host cities. Both Spain and the UK will be hosting matches (in Seville and London, respectively), as defending champions Portugal seek to retain their championship title.

But enough about football. What about the contenders’ property credentials – does it make more sense to buy property in Portugal, Spain or the UK right now?

“Each country has its own merits when it comes to buying property there. Whether it makes more sense to buy in the UK, rather than Portugal or Spain, for example, depends entirely on what you plan to use the property for – and how long you intend to hold onto it before selling.”

Dale Anderson, Managing Director, Fabrik Invest

Owning property in Portugal has plenty of appeal. The cost of living/holidaying there is a major draw. Numbeo reports that Portugal’s cost of living is lower than that of Spain, which in turn is lower than that of the UK. The Post Office Holiday Costs Barometer 2021, meanwhile, reports that Portugal’s Algarve is cheaper to visit that Spain’s Costa del Sol. And with property priced at €1,185 per square metre, Portugal’s homes are also cheaper than pretty much all of western Europe. Score one for Portugal.

Portugal also delivers an enviable lifestyle, particularly in the sun-kissed Algarve, with its stunning coastline, world-class golf and marine sporting facilities and its picturesque towns and villages packed with independent restaurants and cafés serving up the delicious local cuisine.

In terms of what you can get for your money in the Algarve, the homes at Amendoeira Golf Resort are a great example. Two-bedroom apartments cost from €285,000, while three-bedroom villas with private pools are priced from €490,000.

Owned and operated by Kronos Homes, Amendoeira Golf Resort presents buyers with a range of additional facilities, including golf, tennis, a gym, communal pools, a sports bar, a restaurant and a stunning new clubhouse. For those currently fixating on the Euros, there’s a natural grass football field built to FIFA’s standards, along with two AstroTurf five-a-side football fields.

So, what does Spain have to offer? Like the Algarve, southern Spain offers a superb outdoor lifestyle, with 300 days of sunshine per year. It also provides a wealth of golf and other sporting facilities, along with a wonderfully scenic coastline. Spain’s coast is on the Mediterranean, so it wins out over Portugal when it comes to sea temperatures (as Portugal sticks out into the Atlantic).

For those who like to treat themselves while on holiday, Spain is also the place to be. From designer clothes to yachts, the country’s southern shores are awash with high-end goods and upscale beach clubs (far more so than that Algarve, which tends to deliver luxury in a rather more laid-back fashion).

“Spain has long been a favourite destination for British holidaymakers and second home buyers. Its vibrant towns, superb gastronomy and cosmopolitan atmosphere are ideally suited to relaxation and enjoyment.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Spain also wins out over its Iberian neighbour when it comes to flight times – just. Flying from London to Alicante takes around 2 hours and 30 minutes, while London to Faro is closer to 2 hours and 50 minutes.

In terms of properties, the Costa del Sol has a wealth of options available. Leading Spanish homebuilder Taylor Wimpey España offers everything from golf apartments to stunning beachfront homes.

A property at Sun Valley, for example, provide residents with all the benefits of living at the prestigious La Cala Golf Resort. Priced from €251,000 for a two-bedroom apartment, the south and southwest facing homes enjoy panoramic golf and sea views and come with a communal pool and infant splash pool. The individual apartments all feature large terraces and spacious interiors.

Where does all this leave the UK? Well, while Portugal and Spain are winning big with second home buyers, investors looking for passive income are turning to the UK, according to property investment firm Fabrik Invest. The company cites the UK’s stability as an investment destination as a key part of its appeal

Owning a rental property in the UK certainly comes with plenty of earning potential. The Exchange in Preston is an excellent example. It offers contemporary urban apartments within one of the city’s key redevelopment zones – Stoneygate. On-site amenities include a gym, residents’ lounge, elegant rooftop garden, concierge and bike storage. Not only are the homes set to benefit from the impact that the Stoneygate masterplan has on the local area, but the North West region is projected to lead the UK in terms of property price growth. Savills predicts that prices in the North West will increase by 28.8% in the five years to 2025.

So… which country wins? It seems the answer really does depend on what you want to own the property for. And as for who will win Euro 2020, only time will tell!

For full details of Amendoeira Golf Resort, please email realestate@amendoeiraresort.com, call (+351) 282 320 820 or visit https://www.amendoeiraresort.com/en/

For more information on Taylor Wimpey España, call 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK, you will need to call 00 34 971 706 972.

For more information on Fabrik Invest, call 020 8175 9891, email enquiries@fabrikinvest.com or visit www.fabrikinvest.com

What has the stamp duty holiday done for property investment in the UK?

What has the stamp duty holiday done for property investment in the UK?

United Kingdom
  • Fabrik Invest reports increased activity due to stamp duty holiday
  • Investors in Chatham Waters save over £100k in just over 3 months
  • First-time landlord numbers swelled by chance to save

As the stamp duty holiday draws to a close, property investment firm Fabrik Invest reports that the policy, which was introduced in July 2020, has done much to support investment in the UK property market. That investment is sorely needed; Hamptons reveals that the UK rental sector now has 250,000 fewer rental homes than it did at its peak back in 2017.

“The stamp duty holiday has delivered on a number of fronts after nearly a year of operation. It’s not just families seeking homes with more space who have been spurred into action – many investors have also seized on the opportunity to make a substantial saving.”

Dale Anderson, Managing Director, Fabrik Invest

The savings certainly have been substantial. Under the stamp duty holiday, anyone who buys a property and completes by 30 June 2021 doesn’t have to pay tax on the first £500,000 of its value. Fabrik Invest has seen investors rushing to take advantage of this. In a little over the past three months, investors in one development alone have saved more than £100,000 in stamp duty that would otherwise have been due.

The development in question is Chatham Waters in Kent. Just over half an hour from London by train and completed in November 2020, the one, two and three-bedroom homes offer waterfront living with a range of high-specification on-site amenities.

“In the last six months, our Chatham Waters investors have saved over £60,000 thanks to the stamp duty holiday. The biggest savers were first time buyers, with some having saved more than 50% of the stamp duty that they would otherwise have had to pay. The holiday has definitely supported more activity in the buy-to-let sector and encouraged some first-time landlords to get involved.”

Dale Anderson, Managing Director, Fabrik Invest

Interestingly, Hamptons has also noted the prominence of first-time landlords, with Head of Research Aneisha Beveridge noting that, “The stamp duty holiday has tempted more small and first-time landlords into buy-to-let, reversing a shift towards portfolio investors.” Low interest rates have also played a role in attracting new landlords to the sector – a shift that many see as vital to buy-to-let’s long-term appeal.

“The UK is struggling with a fundamental shortage of homes. Government policy has driven down the number of available rental properties over the past four years, despite continuing growth in the number of renters. It is our hope that those attracted to buy-to-let investment for the first time as a result of the stamp duty holiday will now remain within the sector and further increase the number of homes available to the UK’s renters.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com