Birmingham is the new London – at least so far as property is concerned

Birmingham is the new London – at least so far as property is concerned

United Kingdom ,
  • London property prices fall for 2nd consecutive year (Nationwide)
  • Birmingham population to grow by 14.5% by 2041 (ONS)
  • Prices and yields combining to make Birmingham the new London (Surrenden Invest)

As a leading property investment company, Surrenden Invest has for years been espousing the virtues of the Birmingham property market. Now, with London house prices falling for the last two years in a row, increasing numbers of investors are looking to Birmingham to be the home of their UK property investment.

According to the latest Nationwide figures, London house prices dropped by 0.8% in the year to December 2018, following a 0.5% fall in 2017. By contrast, the Nationwide figures show a 2.9% increase in house prices for the West Midlands for the year to Q4 2018.

However, it isn’t just because London prices are falling that the Surrenden Invest team are such strong advocates for Birmingham. Indeed, the team was extolling the virtues of all things Brum long before London house prices began to wobble.

“This simple fact is, Birmingham is an amazing city that has an awful lot going for it. Its business community is thriving and there’s a palpable energy when it comes to startups and entrepreneurs in the city. Birmingham’s residents demand the very best, whether that’s cultural attractions, retail outlets or the restaurant scene – and that’s precisely what the city delivers. This is a modern metropolis that is drawing in new residents by the tens of thousands, and for very good reasons.”

Jonathan Stephens, MD, Surrenden Invest

According to the latest Office for National Statistics population growth projections, Birmingham’s population is expected to increase by around 166,000 people between 2018 and 2041 – a growth rate of 14.5%. This is another factor driving the new wave of property investor interest in England’s ‘second city.’

One of the leading developments that is rising to meet the surge in demand is the centrally located Westminster Works. Home to 220 beautiful, loft-style apartments, Westminster Works is offering investment from £168,000. The building’s specification and facilities are superb, as befits such a prestigious development in this exciting city.

“With Westminster Works, what we see is apartments and amenities that deliver a new style of urban living to Birmingham’s aspirational, dynamic young professionals. The lively Digbeth location is the perfect site for this leading development, while the impressive roof terrace is a feature of which every resident can feel proud.” 

Jonathan Stephens, MD, Surrenden Invest

The yields on offer in Birmingham are another reason that attention is moving away from London. Westminster Works offers solid yields of 5.0% NET – something which many developments in London are either struggling or failing to do.

Then there is the overall impact that regeneration work is having on the city. Grand Central’s opening in 2015 marked a step change in the way that many people thought about Birmingham. Now, the £500 million Birmingham Smithfield masterplan, located just behind Westminster Works, is taking regeneration to the next level. Head of city centre development and planning, Richard Cowell, has hailed it as, “an example to international cities,” with residents set to benefit not just from a new market area but from a museum, hotel, culture centres, leisure facilities and a 24-hour gourmet foodie hangout.

“This is the new face of Birmingham – and it’s leaving London looking old and tired. When it comes to UK property investment, Birmingham is the place to be.”

Jonathan Stephens, MD, Surrenden Invest

 

For more information, visit www.surrendeninvest.com or call 0203 3726 499

Ambitious regeneration plans inspiring property investment in NewcastleGateshead

Ambitious regeneration plans inspiring property investment in NewcastleGateshead

United Kingdom ,
  • New £250 million arena planned for Gateshead Quayside
  • North East property prices currently cheapest in England (UK Government HPI)
  • Regeneration projects driving interest in NewcastleGateshead properties such as Hopper House (Surrenden Invest)

Sitting opposite each other on the banks of the River Tyne, Newcastle and Gateshead share many attributes. Residents benefit from access to both of the bustling urban areas, thanks to the seven bridges that join them across the river. Now, the NewcastleGateshead area is enjoying another joint boost – an inspirational vision for the next phase of the regeneration of its quayside area.

The quayside is already popular on both sides of the river, having undergone development work in recent years that has created an exciting, vibrant district with plentiful leisure facilities and food outlets, including a container village serving superb street food. The latest plans will build on that success, adding Europe’s tallest observation wheel on the Newcastle side of the river (to be known as the Whey Aye), and a 10-acre leisure complex on the Gateshead side that includes a £250-million, 12,500-seat arena, a conference centre and two hotels. A number of bars and eateries are also planned.

Specialist property investment agency Surrenden Invest, which has been selling investment properties in both Newcastle and Gateshead for some time, has welcomed the regeneration plans as yet another reason to support residential property investment in this thriving area of the UK.

“With their North East location, properties in NewcastleGateshead already enjoy one of the lowest entry points in England, as the region is leading the country in terms of cheap house prices. This means that investors can pick up superb quality buy to let apartments for less than they can in many other similarly sought-after urban areas. The recently announced regeneration plans will serve to further increase interest in this part of the North East, both as a tourist destination and as a place to live and to invest.” 

Jonathan Stephens, MD, Surrenden Invest

As at October 2018, the average home in the North East cost just £128,484, compared to a UK average of £231,095, according to the government’s UK House Price Index. That’s despite many buy to let properties there offering comparable yields to those found in other UK cities. Add in the exciting new developments and the case for investment is certainly a tempting one. As Councillor Martin Gannon, Gateshead Council leader points out, such plans are “a game-changer not just for Gateshead but for the region.”

The stir created by the regeneration plans is driving interest in the region, with developments such as Gateshead’s Hopper House benefitting as a result. The 81 stylish studio apartments are perfect for those looking to make the most of life in Gateshead. Located just over 10 minutes’ walk from Gateshead Quayside, the apartments come with an on-site sauna, steam room and gym with adjoining sun terrace, as well as a spacious reception area complete with concierge desk and pool tables.

“Projects such as the Gateshead Quayside arena and the Whey Aye speak to the future potential of this lively area. These are long-term plans that demonstrate a commitment to Gateshead and Newcastle’s residents, as well as to attracting visitors from elsewhere. Such plans are a key component of the region’s future economic success and make it an exciting time for investors looking for combine great entry prices with healthy yields.”

 Jonathan Stephens, MD, Surrenden Invest

 

For more information, visit www.surrendeninvest.com or call 0203 3726 499

Three 2018 property market lessons from Surrenden Invest to steer us into 2019

Three 2018 property market lessons from Surrenden Invest to steer us into 2019

United Kingdom ,
  • Discerning buy to let buyers driving market for right kinds of properties
  • Liverpool, Newcastle and Manchester together had 10 of 25 best UK buy to let areas in 2018
  • Steady hand and long-term outlook key to dealing with Brexit

2018 has been a busy year for the UK buy to let market. Despite continued government tinkering with things like stamp duty and mortgage tax relief, the potential for both capital growth and healthy yields has been sufficient to encourage many investors to grow their portfolios over the course of the year, according to specialist property investment agency Surrenden Invest.

“Interestingly, while the overall number of buy to let landlords in the UK has been falling, we’ve seen the best developments attract a huge amount of attention. The right blend of on-site facilities and city centre location are proving a winning combination, particularly in key regional cities.”

Jonathan Stephens, MD, Surrenden Invest

Based on its experience over the past year, Surrenden Invest has pulled together three property market lessons from 2018.

The first is that buy to let investors are maturing and becoming more discerning about where they put their money. For a property investment company like Surrenden Invest, which specialises in choosing developments that are a cut above the rest to present to its clients, it means that 2018 has been a good year.

Ancoats Gardens in Manchester is a prime example of this. Not only does the development enjoy a top notch location, just 300m from the massive NOMA site, but the quality of the apartments is just superb. Spacious, light-filled homes are complemented by an exceptional rooftop garden, coffee lounge and on-site gym, with an air of urban elegance and luxury flowing throughout.

The importance of regional cities such as Manchester is the company’s second 2018 take-away. Investors have largely fallen out of love with London (though odd pockets of potential do remain there, thanks to the sheer size and diversity of the capital’s property market). Instead, buyers are enjoying the superior yields offered by regional cities across the UK. The Totally Money Buy-to-Let Rental Yield Map 2018/2019 shows that Manchester, Liverpool and Newcastle between them were home to 10 of the 25 highest yielding postcode areas in the country over the course of the past year. Yields hit 9.79% in Liverpool, 8.89% in Newcastle and 7.07% in Manchester.

“Investors who buy in the right locations are enjoying impressive yields. Knowing regional markets inside out was more essential than ever for property investment companies looking to maximise their clients’ returns in 2018 – and will continue to be the case in 2019.”

Jonathan Stephens, MD, Surrenden Invest

Birmingham is one of the markets that Surrenden Invest expects to see more of in 2019. Home to the superb Westminster Works development, which provides 220 outstanding, loft-style apartments, the city is a hotbed of entrepreneurial talent and creativity. Its fast-paced property market and thriving business community both support its position as one of the most exciting investment locations in the UK for 2019.

Surrenden Invest’s final lesson from 2018 is that it’s important to keep a steady hand as Brexit approaches.

“Investing in property is ultimately about building up assets that provide returns over the medium to long term. This isn’t about flipping homes for a quick profit, but about building up a stable, steady stream of income using assets that themselves increase in value over the long term too.”

Jonathan Stephens, MD, Surrenden Invest

 

For more information, visit www.surrendeninvest.com or call 0203 3726 499

From Mumbai to Manchester – could Indian investment be a top 2019 property trend?

From Mumbai to Manchester – could Indian investment be a top 2019 property trend?

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  • New direct Mumbai flights could open up Manchester property market to Indian investors (Surrenden Invest)
  • Trade between UK and India worth £18 billion in 2017 – up 15% on 2016 (DIT)
  • £1 billion 2018 Indian investment announcement to create/safeguard 5,750 British jobs

Jet Airways’ new Manchester to Mumbai direct flight route has prompted speculation that the city might be ripe for a wave of Indian investment. Manchester has already benefitted immensely from Chinese investment, and now 2019 could be India’s turn to fall in love with this enticing British city, according to specialist property investment agency Surrenden Invest.

“It wasn’t that long ago that investors from overseas looked only at London when it came to investing in UK cities, but the likes of Manchester have rocketed onto the global stage in recent years, attracting keen interest from China in particular. Those same attractions that convinced Chinese investors to look more closely at Manchester are now ready to woo investors from India.”

Jonathan Stephens, MD, Surrenden Invest

Manchester is well positioned to attract the kind of global attention that could trigger a new wave of foreign investment. TimeOut has just flagged up its Ancoats district as the 13th coolest neighbourhood in the world. Colourful street murals, cotton mills transformed into affordable co-working spaces, artisanal bakeries and gun joints all contribute to Ancoats’ distinctive vibe.

Of course, Ancoats – and Manchester as a whole – are already firmly on many foreign investors’ radars. Two years after the opening of the Hainan Airlines direct route between Manchester and Beijing, figures show a 38% increase in Chinese visitors to the region – higher than the London average and that of the UK as a whole, both of which stood at 30%. Hand in hand with the increase in flow of people has been an increase in the flow of spending, with those visiting the North West spending 5% more than the national average.

“UK-China bilateral trade links have never been stronger: in 2017 UK-China bilateral trade expanded by 15.1% to reach a record £67.5bn, whilst UK exports of goods and services to China grew by 28.5%… I’m delighted to see Manchester and the surrounding region benefit so much from this flight connection to Beijing.”

Richard Burn, Her Majesty’s Trade Commissioner for China

Investors have also been spending big in Manchester since the direct flight route opened in 2016, particularly when it comes to the city’s property market. Of course, Chinese investment in Manchester pre-dates the direct flight connection. Indeed, the Manchester China Forum celebrated its fifth anniversary in April 2018. The forum has seen more almost £4 billion of investment in Manchester’s infrastructure by China in that time, with Airport City, Middlewood Locks, Angel Meadows and the Northern Gateway all benefitting.

As well as giant, corporate investors, individuals with an interest in property have been keen to get involved in the Manchester scene. Areas such as Middlewood Locks are perfect for them, with properties such as Middlewood Plaza offering a decent entry point into the market. Priced from £153,000, the stylish apartments, townhouses and duplexes provide the ideal contemporary property investment.

Another popular option is Ancoats Gardens, which sits at the heart of Manchester’s hippest district. The stylish apartments with their high ceilings and premium facilities are priced from £229,714. From an award-winning local developer, the building boasts exemplary environmental credentials. Facilities for residents, meanwhile, include an extensive roof terrace, on-site gym and spacious coffee lounge.

With Jet Airways’ opening of a new direct route between Manchester and Mumbai, there’s plenty of scope for rupees to start rolling into the city in 2019. Earlier this year, more than £1 billion of new Indian investment into the UK was announced, creating or safeguarding 5,750 British jobs as a result of technology, trade and investment partnerships between the two nations. Figures from the Department for International Trade show £18 billion worth of trade between the UK and India in 2017, representing a 15% increase over the 2016 figure.

“Removing barriers to trade is a key way in which the UK can capitalise on the predicted growth in world markets and I’m so delighted we have come to this new trade partnership with India.”

Liam Fox, UK International Trade Secretary

Now that the Jet Airways route has made Manchester more accessible to Indian investors, and thus removed a barrier to their involvement in the local area, it remains to be seen how quickly the city can impress Indian visitors with its potential. Those working in the UK buy to let property sector will certainly be keeping a close eye on the situation.

 

For more information, visit www.surrendeninvest.com or call 0203 3726 499

Homes near Christmas markets – at home and overseas

Homes near Christmas markets – at home and overseas

France Spain United Kingdom , , , ,
  • Regional Christmas markets pulling in shoppers from far and wide
  • Arras French Christmas market drawing shoppers across the Channel
  • Twinkling festive lights and beach sunsets a winning combination in Spain

Each year, towns and cities around the world hang up their twinkly lights and roll out the market stalls, ready for the magic of Christmas to come alive once more. From traditional toys to quirky gifts, Christmas markets provide a wonderfully atmospheric way to do your Christmas shopping, with plenty of tasty treats thrown in to keep you going.

According to the Nabma ROI team, Christmas markets generate more than £250 million in visitor spending. Deloitte, meanwhile, are projecting a rise of 1% in our Christmas spending this year, with an average spend of £567 per person over the festive season. The figure is 42% higher than the European average. The majority of the expenditure (£299) will be on gifts, though food and drink and socialising will account for a fair amount, at £151 and £66 respectively.

Those shopping for properties at this time of year can enjoy the delights of local Christmas markets as they analyse the area(s) they’re interested in. Here, we’ve rounded up some of the best festive markets and the best local properties, to give them a head start.

Birmingham

Birmingham is known for hosting the largest German Christmas market outside of Germany or Austria. From craft beers and artisan edibles to toys and crafts, this is a great place to do your Christmas shopping while indulging in some incredible gingerbread.

In terms of property market opportunities, Birmingham is home to the exceptional Westminster Works. Nestled in the city’s hip and happening Digbeth area, the 220 elegant apartments are available from £168,000 through Surrenden Invest.

Manchester

Manchester’s Christmas market attracts millions of visitors each year, with a wide variety of gifts, toys and gourmet treats, alongside an ice rink to burn off all those extra Christmas calories.

For property investors, Ancoats Gardens is the obvious choice. The latest of Surrenden Invest’s investment opportunities, the world-class apartments are one of the city’s most exciting developments. Prices start from £229,714.

France

Of course, it’s not just the UK that has jumped on the Christmas market trend. Shoppers looking to head across the Channel will find one of France’s most beautiful Christmas markets just an hour’s drive from Calais. The market is set in the midst of the splendid, Flemish-style architecture of Arras, some of which is UNESCO World Heritage listed. The Village de Noël includes more than 130 chalets, surrounded by richly decorated Christmas trees and fairy lights. Toys, gifts and gourmet treats abound, along with an action-packed funfair with everything from an ice rink and toboggan slide to a merry-go-round and big wheel.

Properties in the local area are as diverse as the gifts for sale at the market. One of the most interesting currently on the market is a three-storey water mill with beautiful grounds, which spans the River Ternoise. Ripe for conversion, the property is on the market for €309,000.

Spain

A short plane ride away, Spain also hosts some superb Christmas markets each year. In the Costa del Sol, visitors can enjoy sunshine and beachscapes during the day, then head for the gently twinkling lights of the Nordic-style stalls in Estepona of an evening. Traditional teddy bears, clothing, craft items, festive Spanish treats and much more await eager shoppers, while an ice rink and children’s playground ensure little ones (and not so little ones) will be entertained too.

On the property front, Taylor Wimpey España’s picturesque Green Golf development is home to 48 spacious houses with large terraces and spectacular golf course views. Prices for these three-bedroom, three-bathroom home start from €280,000 plus VAT, with residents enjoying lush communal gardens and pools as part of their purchase.

 

For more information:

Surrenden Invest: visit www.surrendeninvest.com or call 0203 3726 499 

FrenchEntrée: visit www.frenchentree.com/property-for-sale/ or call +44 (0)1225 463752.

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

New Brexit Guide from Surrenden Invest helps property investors see past the politics

New Brexit Guide from Surrenden Invest helps property investors see past the politics

United Kingdom ,

 

  • Resignations and leadership struggles getting in the way of key Brexit facts and figures
  • New Brexit Guide to help investors see through the political fog
  • Regional focus examines potential of cities such as Birmingham and Manchester

It’s been a turbulent few days, even by the usual standards of the Brexit process. Brexit Secretary Dominic Raab has resigned, apparently unable to give his commitment to the agreement that he was largely responsible for negotiating. Work and Pensions Secretary Esther McVey has also quit, reportedly following a cabinet meeting in which she was reduced to tears, as have Junior Northern Ireland minister Shailesh Vara and junior Brexit minister Suella Braverman.

The Prime Minster is now being hauled over the coals by everyone from the opposition to her own party, as Jacob Rees-Mogg moves to lead a vote of no-confidence.

“While emotions are naturally running high, given the importance of the process that is underway, all this politicking doesn’t help those looking at the investment potential of the UK property sector. They need facts and figures on which to base their investment decisions: What has happened to property prices since the Brexit vote? Which areas are up and coming? What about the future construction pipeline? These are the questions that property investors need answers to.”

Jonathan Stephens, MD, Surrenden Invest

In order to best meet investors’ needs, specialist property investment agency Surrenden Invest has put together a thorough, detailed Brexit Guide. The document takes a no-nonsense look at the economic fundamentals that the UK is facing following its decision to leave the EU. It looks at the economy as a whole, as well as segmenting out Brexit’s impact on industry, retail, foreign direct investment and housing.

Far from being a London-centric document, the new Brexit Guide considers the regional perspective and implications, with Birmingham, Manchester, Liverpool and Newcastle all under the spotlight in terms of their future investment potential.

Surrenden Invest is well positioned to comment on these regional hives of activity, having spent years working with local developers to bring some of the finest contemporary residential developments to investors. The company’s latest development, Ancoats Gardens in Manchester, epitomises the high quality homes that are available to investors looking to be part of the future of the UK housing market, once they can see past the Brexit politics.

“We wanted to create something that provides real value for investors – something that gives them the hard facts, as well as expert insights from our team of property and finance specialists. I’m delighted that the resulting Brexit Guide does just that.”

Jonathan Stephens, MD, Surrenden Invest

Freely available through the Surrenden Invest website, the Brexit Guide will be updated regularly, ensuring its status as an essential, living document as we hurtle ever closer to 29 March 2019.

 

For more information, visit www.surrendeninvest.com or call 0203 3726 499

The future of property investment – where will 2019’s housing hotspots be?

The future of property investment – where will 2019’s housing hotspots be?

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  • Regional cities boasting Brexit-proof potential will top investors’ lists in 2019 (Surrenden Invest)
  • Solid market fundamentals will remain in place after March
  • Growing, youthful populations will be influential on 2019 hotspots

It’s time to gaze into the housing market crystal ball to see what 2019 might bring. With the UK set to part ways with the EU at the end of March, it’s going to be an interesting year for any number of sectors, housing included. However, specialist property investment agency Surrenden Invest believes that the UK is as prepared as it can be to ensure that property investment continues as business as usual.

“Nobody can ever see what the future holds – that’s the case regardless of Brexit. As such, looking ahead to likely investment hotspots is a case of examining the underlying market fundamentals. For 2019, that means cities with youthful populations and strong trends for city centre living. The UK’s rental sector is still growing, so 2019’s hotspots will be those areas in which populations are expanding rapidly, and where employment prospects are sound.”

Jonathan Stephens, MD, Surrenden Invest

The UK is in the midst of a housing crisis and is falling further and further behind each year in terms of delivering the number of homes that our population needs. The 13,000 new homes mentioned in this week’s Budget are a mere drop in the ocean. Combined with the rapid rise in popularity of city centre living, the shortage of housing is creating pockets of extreme demand in some of the UK’s regional metropolises. As such, the Surrenden Invest team has done some number crunching (with a little help from data from the Office for National Statistics and Zoopla) to see which hotspots are worth keeping a close eye on over the year ahead.

 

2019 property investment hotspots

Birmingham

2018 population: 1,147,300

2041 projected population: 1,313,300

Property price growth over past five years: 29.46%

Housing development to watch: Westminster Works

With a 14.5% population increase on the cards between now and 2041, Birmingham tops the list of 2019 hotspots. The city has a young population compared to the country as a whole, with its five university campuses attracting young people with a thirst for knowledge. The city has the sixth highest graduate retention rate of any UK city, and the third largest inflow of graduates with no prior connection to the city.

This 65,000-strong student talent pool provides Birmingham with a vast pipeline of future workers and entrepreneurs. It also means that stylish homes in city centre locations are, and will continue to be, in hot demand.

 

Manchester

2018 population: 553,500

2041 projected population: 631,500

Property price growth over past five years: 30.60%

Housing development to watch: Ancoats Gardens

Manchester is on track to experience a 14.1% population increase between 2018 and 2041, meaning it will be snapping at Birmingham’s heels in terms of growth. The city has already risen up the ranks in recent years, making it onto IBM’s list of top ten global destinations for foreign direct investment in 2017 (as part of the Manchester-Liverpool metropolitan region).

Manchester benefits from a steady influx of bright, enthusiastic young people. The city is second only to London in terms of its graduate returners (at 58%), as well as its inflow of graduates with no prior connection to the city. Businesses are doing much to harness this talent; Amazon, for example, chose Manchester as the site of its first Amazon Academy, running a series of programmes and events designed to help hundreds of small, local businesses. Future residential developments in the city centre will need to serve these entrepreneurial young professionals.

 

London

2018 population: 8,965,600

2041 projected population: 10,346,000

Property price growth over past five years: 32.36%

Housing development to watch: Brook House

London leads the UK in many respects, as a world-renowned centre for finance, business, education, tourism and more. Over the next 25 years or so, its population is projected to increase by 15.4%, driving demand for housing across the capital. From sleek, centrally located apartments to sprawling houses in the suburbs, London offers every kind of property imaginable, providing homes for workers from across the UK and the globe.

More than 300 languages are currently spoken in London’s schools, highlighting the diversity of the capital’s future workforce. The city attracts some of the best and brightest as a result of its vast range of employment opportunities and is home to a huge rental population. According to PWC, 60% of Londoners will rent their homes by 2025, as the city’s young (and not so young) professionals rent in ever greater numbers.

 

Liverpool

2018 population: 495,300

2041 projected population: 554,500

Property price growth over past five years: 24.67%

Housing development to watch: The Tannery

Liverpool is on track to experience a population increase of 12.0% between now and 2014, as the city continues to attract talented young people as a result of its thriving service sector, healthcare sector and knowledge economy. The city’s extensive cultural offering is also a draw, from its plentiful museums and art galleries to its excellent restaurants and lively music scene.

42% of Liverpool’s population is below the age of 30, compared with 37% nationally. This youthful population is driving forward Liverpool’s reputation as an innovative, entrepreneurial city. It is also one of the main forces behind the extensive regeneration that the city is experiencing, while the growing trend for city centre living is creating new hotspots close to key attractions and amenities.

 

Newcastle upon Tyne

2018 population: 297,400

2041 projected population: 318,100

Property price growth over past five years: 23.70%

Housing development to watch: Hadrian’s Tower

Newcastle’s city centre population has grown rapidly since the turn of the century. According to Centre for Cities, Newcastle city centre enjoyed population growth of 112% between 2002 and 2015. The massive jump in demand for city centre living is creating a hotbed of innovation within the housing sector, as developments seek to woo the bright young things who have flocked to the city for work and want prime accommodation in the heart of Newcastle.

With a superb social scene and a thriving urban renaissance well underway, Newcastle’s attractions to ambitious young professionals are plenty. It also has a rapidly growing student body as a result of its superb universities. Student numbers at Newcastle University have shot up by over 70% since 2000, while Northumbria University has enjoyed a student body increase in excess of 114% over the same period. With nearly 50,000 students in total, a full sixth of the city’s population is engaged in study, creating a uniquely youthful atmosphere as Newcastle grows its own talent for the future.

 

“Each of these cities has its own distinctive culture, which is drawing in young people who will ultimately contribute to the future success of that city. Those working in the housing sector need to respond accordingly, delivering high quality homes in central areas, in order to meet the demand that these young people are driving.”

Jonathan Stephens, MD, Surrenden Invest

 

For more information, visit www.surrendeninvest.com or call 0203 3726 499

The true cost of buy to let property

The true cost of buy to let property

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  • New Surrenden Invest mortgage and stamp duty calculators to provide financial clarity
  • Number of landlords in UK at record high of 2.5 million
  • Average properties per landlord has risen to 1.8 homes each (Ludlow Thompson)

Over the past five years, the number of landlords in the UK has increased by 27%. Not only are there more landlords, by they are buying more properties – an average of 1.8 properties each, according to Ludlow Thompson. For the last tax year, when the government’s 3% Stamp Duty levy for second home owners was in full force, and mortgage interest tax relief was on its way out, landlord numbers rose to a record high of 2.5 million.

“The UK property market represents such an outstanding investment opportunity that domestic and overseas investors have been undeterred by tax hikes and Brexit alike. Landlord numbers continue to rise, and the latest addition of 1% more Stamp Duty for foreign investors is unlikely to make much difference. The market fundamentals are strong enough to withstand it – ultimately, the UK property market remains a place where investors can make healthy returns in both the medium and the long term.”

Jonathan Stephens, MD, Surrenden Invest

Given the continuing keen interest in UK property, particularly in regional cities, specialist property investment agency Surrenden Invest is encouraging potential investors to consider the true cost of buy to let property. Their aim is to ensure that potential investors have clarity on all of the costs involved – not just the cost of having a buy to let mortgage.

“Buy to let mortgages are just one of the costs involved in investing in buy to let – there are also legal fees, the cost of furnishing the property, service charges and ground rent for new build developments, management fees and, of course, Stamp Duty Land Tax. It’s only after investors have taken all of these into account that they can work out their returns.”

Jonathan Stephens, MD, Surrenden Invest

While the long list of fees might seem off-putting, investors with a keen eye for a good deal can cut costs while still investing in high end homes. At The Tannery in Liverpool, for example, apartments are available from £85,000. That means that investors pay only the lowest rate of Stamp Duty, as the cost of the home is well below the £125,000 threshold of the first band. Investors at Westminster Works in Birmingham, meanwhile, have the option of selecting stylish David Phillips furniture packs. Doing so can offer a significant cost saving compared with choosing comparable furnishings from high street suppliers, and also cuts out the cost in the investor’s time of having to furnish the apartment.

Other costs are simply part and parcel of the investment, such as service charges and ground rent. Management fees can potentially be avoided, though for many new build investment opportunities, the management company arrangements are a core part of the deal. And even when they are not, those looking for hands off investment opportunities often find that the drag on their time as a result of managing the property directly soon means that they are happy to bear the small cost of using a professional management company.

Again with financial clarity for investors in mind, the Surrenden Invest team have just announced the addition of mortgage and stamp duty calculators to their website. The new functionality will be available in the next few weeks, as the company seeks to provide investors with the right tools to aid their understanding of the true cost of buy to let.

“Investing in buy to let homes in the UK is a fantastic opportunity. We want to ensure that investors have the time to consider the financial implications of doing so at their leisure. The stamp duty and mortgage cost calculators on the Surrenden Invest website are one way in which we are enabling that.”

Jonathan Stephens, MD, Surrenden Invest

 

For more information, visit www.surrendeninvest.com or call 0203 3726

From property to culture to foreign direct investment, Liverpool is showing other UK cities how it’s done

From property to culture to foreign direct investment, Liverpool is showing other UK cities how it’s done

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  • Liverpool leading UK cities with house price inflation of 7.5% (Hometrack)
  • Liverpool-Manchester metropolitan area among top 10 global FDI destinations (IBM)
  • Population boom creating long-term, sustainable property investment opportunities (Surrenden Invest)

Liverpool has just hit the headlines for leading the UK’s cities in terms of its house price growth. The Hometrack UK Cities House Price Index reported 7.5% inflation in Liverpool during the year to August 2018. For those working in the Liverpool property sector, the news comes as no surprise.

“Liverpool has exceptionally strong credentials as a property investment destination. It has a booming city centre population, a thriving business community and a superb cultural offering. This combines to produce a high and sustained level of demand for decent, well-located rental homes, which in turn means that property investors can earn healthy yields, as well as enjoying the potential for impressive capital growth.”

Jonathan Stephens, MD, Surrenden Invest

As part of the Liverpool-Manchester metropolitan area, the city was recently flagged up by IBM’s annual Global Location Trends report as being among the top ten cities in the world for foreign direct investment (FDI). The area pulled in the tenth highest number of FDI projects in 2017, according to the report, resulting in the creation of some 7,000 jobs.

Earlier this year, TripAdvisor also highlighted Liverpool as one of the best places in the world to visit. The city’s cultural offering was key to that decision. This year, it is offering a year-long programme of events, exhibitions, seasons and performances to mark the ten-year anniversary of Liverpool being crowned European Capital of Culture. One of the most impressive offerings is the Terracotta Warriors exhibition, which is drawing in visitors from around the UK and beyond.

“Liverpool is one of those rare cities that has it all. It’s a delightful blend of economic opportunities, cultural pursuits, a superb gastronomic scene, a lively sporting offering and a thriving property market. The city also enjoys property prices that are well below the average for the UK, which is another reason that it is such an exciting prospect for property investors.”

Jonathan Stephens, MD, Surrenden Invest

According to Hometrack, Liverpool’s average property price stood at £120,100 as at August 2018, against a UK average of £217,300. For those buying a main residence, that means 0% stamp duty. For those buying a second home (including investment properties) it means the lowest stamp duty rate, of 3%.

Factor in a 10-15% discount for off plan properties, and Liverpool really does have some exceptional investment deals available. Apartments at The Tannery, for example, are available for as little as £85,000, with anticipated yields of 6% net. Despite the low entry price, the homes have been designed to offer outstanding quality, synonymous with the world’s greatest capital cities – those with which Liverpool has been rubbing shoulders on the IBM Global Location Trends report. Bright contemporary interiors are complemented by on-site facilities including a 24/7 concierge, secure underground parking, a spacious communal courtyard and a roof garden, all in the sought-after L3 postcode area.

“This is definitely an exciting phase in Liverpool’s history. The city is one of the most investable destinations not just in the UK, but in the world. The resulting boom in population is generating a long-term, positive impact on the property market. I wouldn’t be surprised to see Liverpool leading the UK again in terms of its property price increases over the coming months.”

Jonathan Stephens, MD, Surrenden Invest

 

For more information, visit www.surrendeninvest.com or call 0203 3726 499

6 months to go until Brexit and investor sentiment remains bold

6 months to go until Brexit and investor sentiment remains bold

United Kingdom ,
  • Overseas investment in UK property remains strong (Surrenden Invest)
  • Investors ready to take advantage of sterling’s fluctuations
  • World-class developments like Ancoats Gardens attracting keen interest

29 September marks just six months to go until the UK leaves the EU. The country’s journey since the referendum has been turbulent and at times bitter. However, overseas investors remain confident in the long-term viability of the UK’s property market, according to specialist property investment agency Surrenden Invest.

“We’re still seeing strong investor sentiment so far as residential property is concerned. Overseas investors continue to benefit from the pressure that the Brexit process has placed on sterling, with no sign of interest in high quality properties dropping as we approach the 29 March 2019 deadline.” 

Jonathan Stephens, MD, Surrenden Invest

Despite recent gloomy predictions from the Bank of England’s Mark Carney about the future of the UK property market, investors’ confidence has not been rocked. After all, they heard similar predictions immediately following the referendum. Instead, according to the experts at Surrenden Invest, investors have simply become more particular about the products they choose.

“There’s definitely been a drop off of interest in sub-standard developments, as foreign buyers focus on selecting the best products. Agencies with strict quality standards, like Surrenden Invest, are therefore seeing little change as the Brexit deadline approaches. The best developments continue to attract keen interest.”

Jonathan Stephens, MD, Surrenden Invest

Ancoats Gardens in Manchester is a prime example. The 155 apartments are well-located, beautifully designed and offer a host of on-site facilities that will command tenants’ attention. With huge windows and ceilings up to 0.5 meters higher than the average city centre rental apartment, the light-filled homes, with their huge roof garden, coffee lounge and multi-level, 1,715 square foot gym offer world-class living standards. Launched in early September, the development has already attracted foreign investors looking to pick up multiple apartments.

The exchange rate has played an important role in this. The pound remains cheap relative to its pre-referendum value. Despite its stability over the past year, it remains around 10% undervalued on certain markets, such as versus the dollar and Middle Eastern currencies. And investors are ready to take advantage of any further dips.

“We expect to see a lot of foreign investors timing their property purchases very carefully in the run-up to March and in the weeks and months following. While nobody can know for certain what will happen to sterling as a result of the UK leaving the EU, it’s fair to expect a certain amount of volatility so far as the value of the pound is concerned. For those overseas, that could mean some exceptional bargains, if their timing is right. As a result, we expect to see interest in high quality UK residential properties continue well past 29 March next year.”

Jonathan Stephens, MD, Surrenden Invest

 

For more information, visit www.surrendeninvest.com or call 0203 3726 499