Which UK City comes top for property investment this year ?

Posted by Graham Turrell on Sat, Apr 21, 2018 @ 09:38 AM

I am constantly researching the UK property market to identify areas of interest for investment. I thought you might like to take a look at the reports and statistics referenced below which firmly present Liverpool as the City in which to Invest, above Manchester and London.

Please take a look at the following:

Private Finance Reports

Private Finance’s latest buy-to-let hotspots analysis has revealed that Liverpool is the UK’s top performing city experiencing average rental yields of 6.2% once mortgage costs are taken into consideration. This is not something which is likely to blow over considering Liverpool have held this position since May 2017 whilst Greater Manchester averaged rental yields of 5.9%.

Reference - https://www.propertyinvestortoday.co.uk/breaking-news/2018/1/liverpool-and-nottingham-revealed-as-the-best-location-for-rental-yields?source=newsticker

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Which City is Growing Faster?

Across England, Liverpool grew faster than Manchester and London in 2016. Liverpool’s economy grew faster than London, Manchester and any other major British city in 2015/2016, figures show.

Figures released by the Office for National Statistics (ONS) show that Liverpool enjoyed an economic growth rate of 3.1%, faster than any similar major city region in the country.

Reference - https://www.liverpoolecho.co.uk/news/merseyside-economy-fastest-growing-uk-12328312


Liverpool has become the one to watch in 2018: “Liverpool was a strong contender in 2017 but 2018 will really be the year investors take note. Property prices are still low but creeping up slowly, so now is the time for investors to benefit from the strong capital growth predicted over the next 5 years. With the amount of investment being ploughed into the area, particularly the £5.5 billion Liverpool Waters project and £1.8 billion into the Knowledge Quarter,  Liverpool is without a doubt a hotspot for investment.

If you have any questions or want to find out about the latest apartments we have available, please let me know.

Check out our latest top performing Liverpool project - ideal for the hands-free or remote investor...

Natex Liverpool Investment Handbook

Tags: UK Investment, Property Investment, Student Accomodation, Liverpool Property, pbsa, Natex Student

Here's something surprising - how has UK Student property been impacted by the BREXIT vote?

Posted by Graham Turrell on Tue, Apr 17, 2018 @ 07:23 PM

Rather than damage performance, as many analysts had forecast, the Brexit vote intensified activity in the UK student property market and demonstrated the resilience of the sector.

One-Islington-Plaza-internal-1A recent report by Savills also highlighted how the demand for student housing in the UK has outgrown supply. Analysts believe that the market will continue to be driven by bulk purchases, as investors seek to shore up their positions and acquire additional scale.

Appealing to the Far East

The UK’s student property market has become a global asset class, attracting billions in investment from some of the world’s richest individuals and sovereign wealth funds. Demand is so strong that it was standing-room only for some prospective buyers at a recent investment conference in London. One of the biggest overseas investors is Singapore-based fund Mapletree, which acquired over 6,000 beds last year.

In recent comments, Hiew Yoon Khong, Chief Executive of Mapletree provided insight as to why the asset class holds such appeal to overseas investors, telling reporters: “Student accommodation is a big business and relatively low risk.” According to Savills, the second largest source of capital into UK student housing in 2016 came from North America, with over £1.3bn worth of investment. The bulk of which came from two Canadian investors: Brookfield SRE and CPPIB.

Rising standards

As the student buy to let property market has grown exponentially, so the quality of the accommodation has risen. Nowadays student rooms are more akin to corporate apartments, with communal facilities to match. A key part of our portfolio at HighGround is One Islington Plaza in Liverpool, where flat-screen TVs and high-speed broadband come as standard in the rooms. A cinema room, gymnasium and games room provide students the chance to relax away from their studies, reflecting new standards that many now demand. Research from Knight Frank shows that over one-fifth of students are willing to pay more than £160 per week for the right facilities. New possibilities are being created within the market, as developers compete for the attention of an increasingly discerning client base. Overseas students, attracted by a more lifestyle-oriented academic environment, are a big part of the equation.

Appealing to students means appealing to buy to let investors, who will in turn enjoy greater rental returns, and a UK student property market that has demonstrated it can weather the toughest of times.

See more about UK Student Property :

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Tags: UK Investment, Property Investment, News, pbsa, One Islington Plaza

How to Succeed in Student Property - Tip 4:  Deciding if Student Room investment is right for you..

Posted by Graham Turrell on Tue, Dec 05, 2017 @ 10:28 AM

Student room ownership through Purpose-built Student Accommodation can provide some interesting returns from rental income, but they're certainly not for everyone.Here's a handy checklist and some expert notes to help you decide if they're right for you.

So why not sit down with a nice cuppa or a sandwich at your desk, and ask yourself ...

Is hands-free income appealing to me, or do I like to be in full landlord-style control of my property?

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For active landlords, managing and improving their properties is part of their "job" and they embrace and on the whole enjoy it.

Purpose-built student property (or PBSA) on the other hand is by necessity managed entirely by expert specialist facilities management companies. Having research the investment, PBSA investors are satisfied that the management company know exactly what they're doing and to let them get on with it. If you think you'll have "ants in your pants" at this and would want to be involved in the running, furnishing, tenant finding, refurbishing, then PBSA is definitely not for you - because you simply can't do that!

Do I have the time to regularly keep an eye on my property or do I prefer to set and forget?

Those with the considerable time and inclination to be a landlord have the choice of whether to spend it on their properties. For those who simply cannot spare the drain of time in their busy lives to run a buy-to-let property portfolio, PBSA probably wins hands-down.

Is my investment background primarily property ownership or mainstream investment such as stocks and bonds or companies?

PBSA In many ways sits between the two. You have the benefit of ownership of physical property assets with the advantage of being able to sit back and enjoy the income. However, property is not a liquid asset like stocks and shares, and your capital is tied up in the asset. Admittedly you can sell the asset but this would take time. So what are you comfortable with?

Am I able to pay for and own the property outright (typically £50k-£75k)?

Off-plan PBSA is predominantly a cash purchase, although we do have access to a lender willing to look at offering a mortgage, subject to status and the PBSA development itself.

Am I looking primarily for income or capital growth?

PBSA should be considered primarily a long-term reliable income generator. As it is effectively commercial property, its value is based on achievable rental income, which will rise steadily with inflation over the years. Don't expect residential-style price movements (either up or down). As leverage (a mortgage) is not available at purchase, high percentage capital gains should not be realistically expected and will likely not be the key reason you invest in PBSA.

Do I enjoy researching property investments?

    1. There is a little more upfront research to do with PBSA that with buying buy-to-let, especially if this area of property is new to you. But as a fully-managed and maintained asset, the rewards of time-saving come quickly.
    2. Whether you do or you don't, seek out a good partner who can help you with your research (it's what we and other top-notch investment property brokers will do for you). 

Am I willing to retain the asset for at least 5 years?

If you think you may need your invested capital back at short notice, then at this stage of your investment life, direct property investment of any kind including buy-to-let and PBSA, is probably not for you, sorry. Property Bonds may be more suitable though, take a look at our blog topic on that subject.

If you still think you're the right type of investor for Student Property, take a look through our Student `Property market Industry Report, to discover the strong case for investment...

 

Download Student Property Market Review 2016-18 

Tags: Property Insight, pbsa