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Manchester, The Original Modern City

For over 250 years, one UK city has built its reputation for creating more than its fair share of world firsts. Guess which city that is?

Manchester, the new Modern city
Manchester is the UK’s original modern city (Image source: Youtube)

For much of the time it existed, Manchester was a manorial township, with peasants working the fields for the Lord of the Manor. It was only during the turn of the 19th century that Manchester underwent a transformation, and grew at an astonishing rate. This expansion and urbanisation was brought on by a boom in textile manufacturing during the Industrial Revolution, and resulted in Manchester becoming the world’s first industrialised city.

Today, Manchester is known as the UK’s second city. With 50% growth in the last 10 years, it is the UK’s fastest-growing city and Europe’s second largest creative tech hub. Around 70,000 people now work in the city’s creative, digital and tech industries and a rich talent pool of over 110,000 thinkers thrive in the four leading universities there.

Many defining achievements in science and technology come from Manchester. It’s where the world’s first IVF baby was conceived, where they split the atom and isolated graphene. It’s also where the world’s first stored programme computer was built. A total of 25 Nobel prize winners have come out of Manchester!

Massive amounts of investments have gone into Manchester as part of the British government’s Northern Powerhouse push. Starting from this year, £1 billion will be spent to transform the Manchester airport, further establishing Manchester as one of the most connected cities in the world. The city already boasts direct connections to many of the world’s major capitals, like New York, Hong Kong, Singapore and Beijing. The new High Speed Rail (HS2) under construction will cut travel time between Manchester and London from the current 2 hours to just over an hour when it is ready, and, in its second phase, also reduce the time required to travel to Birmingham and Leeds.

Manchester’s staggering development makes it an attractive place for investors looking for the next big thing to invest in. Property, in particular, is a solid choice as there is a growing demand for housing in the city. Manchester registered a 7.3% increase in house prices over the past year, topping the list of all cities in the UK. This demand is bound to rise even higher as Manchester’s economy grows, and more and more jobs are needed.

This video captures the essence of Manchester as the original modern city of the UK:

Facts and figures about Manchester:

  • Birthplace of the Industrial Revolution
  • Where the world’s first IVF baby was conceived
  • 25 Nobel prize winners
  • Where they split the atom and isolated graphene
  • Where the world’s first stored program computer was built.
  • Population of 2.7 million people
  • Over 200 languages
  • With 50% growth in the last 10 years, Manchester is the UK’s fastest-growing city and Europe’s second largest creative tech hub
  • Around 70,000 people now work in the city’s creative, digital and tech industries
  • A rich talent pool of over 110,000 thinkers from four leading universities.
  • Between 2015 and 2017, over £1 billion was spent on the city’s infrastructure.
  • Direct flights to many of the world’s cities, e.g. New York, Hong Kong, Singapore, Beijing etc.
  • Called the UK’s second city
  • Global exporters of world-class culture as well as technology; a city united by a passion for sport and music
  • One of the world’s best places to visit in 2015 — the only British city to be given this accolade by the New York Times
  • Home to some of the world’s biggest brands which contribute to Manchester’s £50 billion economy.
Article by Ian Choong

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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London Falling

Not all about London anymore. The London housing market is struggling with prices falling for the first time in 8 years. At a record drop of 0.6% in September this year, London is the weakest performing region in the UK for the first time since 2005. Image credit: http://bit.ly/2gcAlkU

Increasingly, statistics reveal that growth is expanding outside London. The focus — be it for housing, jobs, resources, or investment — has moved to buzzing regional cities where business is booming on the back of lower costs and a higher quality of living.

The London housing market is struggling. Nationwide reports that London house prices have fallen for the first time in 8 years, and, at a record drop of 0.6% in September this year, London is the weakest performing region in the UK for the first time since 2005.

Outside London and across the UK, however — despite Brexit and concerns about the economy — prices are still rising, albeit at a slower pace than in recent years. And yet, while London’s house prices may have dropped, they remain unapproachable compared to the cities beyond.

To date, house prices charting the most significant increases in England and Wales are the Midlands* and Northwestern cities of Manchester and Liverpool, as well as in some pockets off central London like Luton and Guildford, and Northern Ireland.

A chart published recently in the Financial Times shows house prices falling in London and the South East but growing elsewhere. Image credit: Financial Times; source: RICS

Greener Investment Pastures Beyond London

Years of rapid price increases have made London and the south unaffordable to many buyers, prompting them to buy further away and commute. After all, it takes less than an hour to travel from Bedford or Luton  to central London by train, while cities like Birmingham, Manchester and Liverpool have a buzzing business scene.

The signs have been there for a while now, says Virata Thaivasigamony of CSI Prop, an active property investment consultancy in Kuala Lumpur, Malaysia that promotes investments in UK and Australian property.

“The writing has been on the wall for some time and we’ve said that prices in London will flatline this year. London has always been regarded as the business capital and startup central of the UK, but the fact is that businesses and investments are moving outside of London and into the regional cities. It would be remiss of us to ignore that the best places to invest in are now in those cities,” he elaborates.

What’s Trending

Manchester, popularly assumed as UK’s second city and the Silicon Valley of Britain, is fast earning a reputation as the hotbed of tech and startup talent in the UK, thus pushing property prices up. The city is also a recipient of billions in investment dollars, thanks, in part, to the government’s push for the Northern Powerhouse, propelling the rise in investment returns across central and Greater Manchester, including Salford as well as other Northern Powerhouse core cities like Liverpool.

Prices of property have been rising in Northwestern cities such as Manchester, as more corporations move from London to this city to set up headquarters and make use of its resources and talent pool. Image credit: http://bit.ly/2hEX3Um

Corporations are decentralising from London to the regional cities, too. BBC, ITV and HSBC come to mind, having set up home in Greater Manchester; airlines such as Hong Kong’s Cathay Pacific have since 2014 provided direct flights between Manchester and Hong Kong, while China’s Hainan Airlines launched a direct flight service in 2016, making Manchester Airport the only British hub outside London to have non-stop flights to Beijing.

Meanwhile, Berkeley, one of Britain’s best-known luxury housebuilders has broken out of London to build a business in Birmingham to cater to housing demand in the city.

Javad Marandi, a British businessman with investments in commercial and residential real estate says, “Regional markets including the North East, the South West and Yorkshire and Humber have shown growth in commercial property activity, a sure sign of a growing business environment with an increasingly positive outlook, making them one of the best regions to invest in. Building a workforce, free of soaring London living costs, will in turn be cheaper to employ – and no doubt happier with the favourable cost of living outside the capital.”

That Britain is plagued by a serious undersupply in housing is an understatement. Opportunities in these cities have expanded the population, further underscoring the acute demand and need for housing. From a property investment standpoint, this is a good thing.

Meanwhile, a number of university cities are showing a spike in house prices. Towns that are home to a large student population such as Guildford and Liverpool, are seeing a surge in prices. The biggest 3-year percentage house price rise was near the University of Bedfordshire, which has its main campus in Luton, charting a 42% increase in prices over the period of an undergraduate degree.

“The best regions to invest in lie outside the capital – it’s no longer all about London,” Marandi concludes.

Statistics by RICS indicate that house prices are set to rise across England next year except for London. Image credit: Financial Times; source: RICS

Growth Outside London  

The UK is still seen as a good and safe place to invest your money due to a weakened pound, and, in spite of uncertainties arising from Brexit.

House prices will continue to rise as demand increases and Britain grapples with a chronic housing undersupply, but it appears — for now — that the best investment opportunities lie in regional cities like Manchester and Liverpool, and the outer boroughs of London.

That said, it is crucial to note that London is a market within a market, with characteristics of its own, and that it will bounce back — just as the housing market in the Midlands* bounced back from a low in 2015 to become one of Britain’s fast-growing housing markets today. On a positive note, it is during these low-market times that savvy investors invest in order to reap the most luscious of fruits when the market bounces back.

Article by Vivienne Pal


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Top 5 Places to Invest in UK Now

Here are top 5 places to invest in the UK now according to http://bit.ly/2w3SlZL

News Update: Political turmoil, stamp duty issues and Brexit have an effect on the housing market in the UK this year. Yet, house prices are still on the rise, with the average price of a UK home now 10% above the Aug 2007 peak at £219,266. This is 42% higher than the low point of £154,663 in April 2009 according to Halifax. So, where is the top 5 places to invest in the UK now for great returns?

The key to finding the best places to invest is by observing the infrastructural changes and investments that go into a particular area. We have constantly stressed the importance of this factor to many investors as investments into an area indicate potential developments and expansion, as well as possible job creation. This will increase the number of people coming into an area, which will, in turn, increase the demand for housing. Simple economics dictate that with the increase in demand — especially if the demand overrides supply — comes an increase in price for the entity in demand.

A recent article published on a news site in the UK has identified the top  Here are the top 5 places to invest in the UK in 2017, according to Express.co.uk, a news website in the UK.

Pricing across Liverpool is expected to rise as the city undergoes several housing regeneration schemes including the Liverpool docks. Image credit: http://bit.ly/2vCeblN

Liverpool

Pricing across Liverpool is expected to rise as the city undergoes several housing regeneration schemes including the Liverpool docks. The L1 postcode is a great example – house prices have risen by a whopping 41.2%!

Meanwhile, the student population in Liverpool has given the city the second highest rental yields in the UK, just behind Manchester, due to the combination of low house prices and high rental values. Clearly, student investment is particularly profitable in this city.

Salford, Manchester is the home to MediaCityUK. The area is also a popular option for rental. Image credit: mediacitydaily.co.uk

Salford, Manchester

Over 60,000 people work in the creative and digital industries in Greater Manchester, and that number is forecast to grow by 27% by 2034. What’s important to note also, is the 70,000 students who come to the city each term, with Salford being the popular option to rent. Yields are higher than London and the arrival of the HS2 will add to this appeal.

Just in case you didn’t already know, many corporations have moved their headquarters to Manchester; ITV and BBC have now set up base in Salford. The recent £1 billion investment into Salford MediaCityUK only goes to affirm Manchester as the biggest tech and creative centre outside London.

Boxpark is constructed of stripped and refitted shipping containers, focusing on small independent retailers to create a unique shopping and dining experience. Boxpark Croydon transforms the quality of the retail and leisure offer in Croydon and is expected to draw customers and new businesses from across South London, Surrey and Sussex. Image credit: http://bit.ly/2uRtc0o

Croydon

This London borough has enjoyed a resurgence in its reputation in recent years. Croydon has fast become the “Silicon Valley of the South” with over 1,000 new start-ups coming to surface. The introduction of Boxpark and the upcoming Westfield shopping centre will further increase investment into this area.

Many first-time buyers are already flocking to the area and prices are believed to have risen by 20 per cent in 2016 according to Rightmove figures, the highest rise in the UK. Nonetheless, prices still sit about  £185,000 below the capital’s average, but demand is expected to increase, as is the price!

Basingstoke has a thriving employment sector attracting global companies like Sony and Barclays, and with 66% of its residents working in the town itself. Image credit: http://bit.ly/2x68pGZ

 

Basingstoke has a thriving employment sector attracting global companies like Sony and Barclays, and with 66% of its residents working in the town itself. Image credit: http://bit.ly/2x68pGZ

Basingstoke

Basingstoke has a thriving employment sector attracting global companies like Sony and Barclays, and with 66% of its residents working in the town itself. It also enjoys the highest concentration of digital businesses compared to overall businesses in all of the UK. That, and the upcoming regeneration and redevelopment projects in the area is sure to increase Basingstoke’s stock.

Change is coming to Wood Green thanks to revitalisation efforts and the upcoming Crossrail 2. Image credit: http://bit.ly/2uJTiqi

Wood Green

Situated just west of Tottenham, Wood Green’s house prices are considerably more modest than those in areas around it such as Muswell Hill and Crouch End. Prices in Wood Green is expected to rise, thanks to the targeted £3.5 billion investment to revitalise the town centre and the redevelopment of over 25 sites to facilitate more restaurants and cafes. Wood Green is also a hotspot zone for Crossrail 2 as connectivity is beefed up. Transportation transit points normally beef up the housing area closest to it.


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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UK Property Outlook 2017

Housing Shortage Continues to Drive UK Property Market Growth in 2017

Summary

Lack of housing in the UK remains the top driver of housing market growth in the UK
Property markets in regional cities like Manchester have surpassed London
UK student property remains resilient to Brexit, growth predicted to hit £45.8bn by Sept 2017
Brexit effects still muted, international investors have greater appetite for UK real estate

Image credit: http://bit.ly/2hNtoqD

The year 2016 was an eventful one for the UK property market, influenced significantly by changes to the stamp duty and Brexit. While these events will continue to underpin market growth in 2017, the critical lack of housing remains the market’s main driver, supporting property prices. This article highlights the various issues that will dominate the UK property landscape in 2017.

Brexit Aftershock – A Final Window of Opportunity

The market calmed down fairly quickly following the results of the EU Referendum. Fears of an immediate house price crash after Brexit have abated with overseas investors particularly gaining a strong appetite for UK real estate, fuelled by the drop in the pound. As 2017 reopens with the spectre of Article 50, we foresee the same uncertainty surrounding the property market following Brexit in 2016, remaining in 2017. PM Theresa May received landslide votes in Parliament on Feb 8 to trigger Article 50, yet this will not change the fact that Brexit shall be a long-drawn affair.

Appetite for UK property stands to remain strong among overseas investors during this window of uncertainty when the sterling remains at its lowest levels since 1985. The Bank of America has advised its clients that it expects the sterling to suffer one last plunge — its lowest — when Article 50 is invoked (expected end March) and that this will be the best time to buy the sterling as the currency will strengthen after official Brexit negotiations get underway. The bank believes the sterling will recover in a V-shape rebound and that currency markets will no longer react to Brexit following this.

We have always believed that London and the UK are resilient and will remain an important global landmark; the market shall right itself around and the pound will rise again once the chaos calms and uncertainty reduces. We anticipate that investment volumes will recover next year, but until then, now is a good time to invest in UK property while the pound is at its weakest.

 

UK Student Property Remains Top Investment Asset

Just as it did during the economic downturn, UK student accommodation is proving resilient to concerns about Brexit. The Universities and Colleges Admissions Service (UCAS) reports that the number of students for 16/17 is set to exceed the previous year. While it may be that the weaker pound is more attractive to overseas students, it also proves the ongoing demand for UK higher education. JLL released research showing that at the start of the 2016/17 academic year, almost 522,000 students were enrolled on undergraduate courses at UK universities, an increase of more than 7,000 on 2015 while the number of acceptances of EU students rose by 8% y-o-y.

We strongly foresee that UK student accommodation is set to remain popular due to its recession-proof qualities, alongside supply still unable to keep up with demand across the UK. There will be growth in overseas investors due to the favourable exchange rate. Knight Frank predicts that UK’s purpose built student accommodation sector is set to reach a total value of £45.8bn by September 2017 while rental growth of 2.5% is expected. The sector has grown by 37% since 2014, from £30.9bn to £42.5bn, making it one of the fastest growing asset classes in the UK property market.

 

House Prices Continue to Increase

The UK housing market is a tough cookie, staying resilient in the toughest of times.

Figures by the Office for National Statistics (ONS) for October 2016 showed that house prices across the UK grew 6.9% y-o-y. While this may be the lowest growth figures recorded since end 2015 (the market slowed mostly due to stamp duty and other tax changes), this is still strong growth nonetheless, driven by the general undersupply of housing across the UK. The Royal Institution of Chartered Surveyors (Rics) predicts that UK house price growth will slow down in 2017, but that the legacy of insufficient housing will see demand continue to outstrip supply, leading to a 3% rise over the year. The weaker pound will prove favourable to international investors.

 

Britain’s Crisis: Housing Remains Critically Undersupplied

Some 250,000 – 300,000 houses need to be built every single year to tackle soaring house prices and home shortage in England. The latest figures show that only 190,000 homes were added to England’s stock last year — the highest number since the financial crisis. With the current uncertain climate, there are fears that fewer homes will be built in 2017, with Jones Lang Lasalle (JLL) suggesting that the number of housing starts (ie start building) could fall to 134,000 (from 147,880 in 2016).


Rents Continue Rising

Data from Savills shows house prices vs rental. Image credit: BBC

Despite the change in stamp duty affecting landlords, there remains a significant community of renters in the UK, due to the critical undersupply of housing and prices at inaccessible levels. Commentators predict rent rises of 2%-3% across the UK; Savills has forecast a rise of 2.5% in 2017, while in London the increase will be at 3% as more people share homes to split the cost. In fact, Savills has predicted that rents would rise faster than house prices i.e. at 19% between now and 2021 while house prices only rise by 13%. Rics suggests that rents will rise by about 5% p.a. for the next five years because of strong demand and shortage of properties.

PwC’s research into housing affordability for generation rent shows that buyers may now have to save for 19 years in order to buy their first home (assuming deposit is raised entirely from their own savings without family assistance). In 2000, the same group would have been able to buy after saving for just 6 years, and in 1990 it took only around 2 years.  PwC estimates a generation renter starting to save in 2016 can now buy in 2035. See our article: Britain, A Nation of Renters?

Manchester Knocks London Out in Price Growth

For the first time in 7 years, London is no longer within the top three growth regions in the UK as the effect of Brexit is more keenly felt in London. Regional cities like Manchester and Birmingham are in the spotlight due to better public realm improvements and more students choosing to stay and work in these cities. Manchester is leading the price growth among key cities in the UK, recording rises of 8.9% y-o-y as demand exceeds supply and unemployment falls. The outer boroughs of London are posting faster growth rates than the inner boroughs and this trend is looking to stay this year.

House price growth rates: inner vs outer London boroughs. Source & credit: CBRE

Rightmove’s most recent report, based on asking prices of properties for sale, shows a steady start to 2017’s housing market, with annual growth in the East and South-East regions of England significantly outpacing London and the South-West. Again, prices are being bolstered by a lack of housing, meaning that demand continues to outstrip supply.

Conclusion

There is strong potential in the UK real estate market as it is not as affected by Brexit as many think. UK student accommodation is a good investment asset as we see increased interest and investments into the sector, even from among our own clients. Key to strong returns is to buy in cities with  good universities and accommodation undersupply. For residential property, we have always maintained that Manchester is the city to focus on while outer boroughs of London, particularly East London (especially areas with Crossrail accessibility) will bring better returns than inner London.

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CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Gen-Y: The Future of the UK Property Market

Part 1 of our Manchester series underscores research highlighting Manchester as the UK’s no. 1 property investment hotspot in the next 10 years. In Part 2, we discuss why Manchester is poised to have the strongest rental market in the UK.


Video credit: Select Property Group

According to Savills, demand for rented accommodation has increased by 17,500 households per month over the past decade to 2014. This demand for rented homes is set to rise by more than 1 million households over the next 5 years.

The private rented sector in Manchester is slated to boom with over 10,000 new build-to-rent units are due to be built over the next few years. This is due largely to the Mancunian city’s largest concentration of young working adults, i.e. the Generation Y.

7 Reasons Why Generation Y is the Future of the UK’s Property Market – Select Property Group

  • They do not want to be tied down with long-term mortgages
  • Career-focused; they stay in roles for shorter lengths of time as they progress later in life
  • Prefer to live in dense, diverse urban villages
  • Demand ceaseless access to technology and fast-paced information
  • Professional and educated with a good work-life balance
  • Value practical amenities that make living easier
  • No expectation to own a property – success is defined in other ways

#DidYouKnow that Manchester is home to over 60% more 25- to 29-year-olds than the national average? (source: Manchester Property Guide 2015)

Manchester has the youngest working demographic in the whole of the UK.

Why is Manchester the Fasting Growing Generation Y City

  • The city’s population is rising quicker than any city outside of London and 2.85 million people will live there by 2025 – 89% of this new population is Generation Y.
  • It means over 60% more 25 to 29-year-olds live in Manchester than the UK average. This Generation Y market accounts for 22% of Manchester’s overall total population, almost 4 times the national average
  • A huge 85% of people living in Manchester city centre now privately rent and 70% of the population is classed as BINKY – Big Income, No Kids Yet
  • 58% of graduates from the Greater Manchester universities enter employment in the local area. That’s almost 20,000 new workers a year. Every year.
  • Aspirational and career-focused young people are naturally drawn 70,000 new jobs will be available to them over the next decade.
  • City targets state Manchester needs 4,000 new units a year to house its rapidly growing Generation Y market. Only 1,417 annual units are set for delivery over the next eight years. Two-thirds of this supply is still subject to planning.

This post is originally published by Select Property Group.

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Manchester: Best Property Investment Yields

In Part 1 of our Manchester series, we discuss the facts & figures that make Manchester THE top city for investment in the UK. The numbers don’t lie.
Photo credit: Select Property Group

The investment landscape in the UK is changing. The focus has moved from London as the go-to destination for investment and the UK’s largest economic gains, to Manchester.

With the highest yields and critical undersupply of housing in the Northern Powerhouse on the back of significant investments by the government, Manchester’s growth is just beginning. Today, Manchester is at the top of the league in annual rental increases in the UK and, with a rapidly expanding population comprising greatly of the youngest demographics in the country, Manchester is the best place for property investment.

In fact, property advisor JLL has predicted that house prices in Manchester will increase by 26.4% in the next 5 years, with 5.5% growth over the course of 2016.

Trust the facts. Here are 10 reasons why you should invest in Manchester:

Manchester has secured £8.2 billion of investment over the past decade, more than Birmingham’s £6.5 billion or Glasgow’s £5.3 billion – CBRE, Jan 2016

2  HSBC ranked Manchester as the UK’s no. 1 city for property investment yields in 2015, thanks to average annual returns of 8% – HSBC, 2015

3  Since 2010, average annual yields in Manchester have risen by 6.02%, the highest in the UK. In comparison, yields in London rose by just 4.71% during this period

4  Manchester named as UK’s top property investment hotspot in the next decade – House Simple

5  Manchester is a young community, with over 60% more 25- to 29-year-olds living there than the national average. These people need rental accommodation – Manchester Property Guide 2015

6  Manchester has a higher job growth rate than London, recording a 47% increase job advertisements in April 2015 alone compared to 42% in London. 70,000 new jobs will be created by Greater Manchester’s financial and professional services sector by 2025 – CV Library & BNY Mellon

7  Manchester was named the best UK city to live in for the second consecutive year – EIU Global Liveability Survey 2015

8  Manchester’s population expected to grow by 125,000 to 2.87 million in the next decade – ONS

9  With the redevelopment of transport systems, more than 15 million people can reach the city in less than 45 minutes by 2025 – up from 7 million currently – BNY Mellon

10  Greater Manchester to get its own directly-elected mayor, with the region receiving £1 billion worth of devolved powers from the UK government. This will enable Manchester to hold new freedoms to better control its own budgets and will be able to dictate which areas need the most investment on a regional level.

In Part 2 of our Manchester series, we explore the influx of Generation Y in the city and how it contributes to greater demand for rental housing. Stay tuned!

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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UK Student Property in 2016

Phase II of London Spring Place which launches in Kuala Lumpur end of February. Phase 1 sold out within the year of launch!

UK student property is the strongest investment platform today, surpassing other traditional real estate classes. In 2015, the UK student property sector saw investments to the tune of £6 billion – twice the amount invested in the sector in 2013 and 2014 combined. Experts say the sector is likely to see more investment in the years ahead.

UK Student Property

Formerly reserved for institutional investors, UK student property has become one of the most popular investment vehicles to date in the world of property investment. From a mere £500 million in 2010, direct investments in the sector reached £6 billion in 2015, surpassing the £3 billion in 2013 and 2014 combined. More significantly, this marks an increase of more than 300% over the £1.7 billion invested in 2014 alone.

Is Growth in the Sector Set to Continue?

The answer is yes.

The fact remains that there is still an acute under supply of purpose built student accommodation (PBSA) in the UK due to restrictions in building permissions, a challenging planning environment and the government’s support for housing development. Meanwhile, the number of foreign students continues to rise due to recently abolished restrictions in foreign student numbers, which comprise the traditional mix of new first year students and second- and third-year returners.

To illustrate, the number of foreign students at Britain’s top universities doubled between the 2005/2006 and 2013/2014 academic years. These students tend to come from wealthy families who are able to afford the soaring cost of tuition for non-European Union residents and demand a high-class standard of living. The Higher Education Statistics Agency reported that the number of residents living in private halls more than doubled between 2007 and 2014—from 46,000 to 102,000—a trend predicted to continue. The dramatic upswing has been fuelled by the inability of university-managed accommodation to keep pace with student numbers.

London’s full time student population alone is expected to rise by 50% in the next 10 years, whilst student cities, particularly where there is a Russell Group university, is expected to see dramatic increases in student numbers. EU and non-EU students are the fastest growing segment, bringing a net benefit of £2.3 billion per annum to London’s economy supporting 60,000 jobs in the capital.

But, beyond the fundamentally undersupplied market, one reason for the success of PBSAs is that students have become more discerning, especially in light of increased tuition fees. Unite Group reports that 85 per cent of second year undergraduates are now looking for quality, purpose-built student homes that fulfill all their needs (including peace and quiet and access to night life), and with the CBRE statistics showing that student accommodation generally has occupancy rates of some 99%, it’s easy to see why people put their money into this area of the market.

Conclusion

The structural undersupply in purpose built UK student property has caused prices to skyrocket. Student housing charity Unipol, for example, reported a rent rise of 25% in purpose-built student accommodation between 2010 and 2013 – nearly double the rise in the rental sector as a whole in that period (13%).

Experts predict that student housing will experience a continued strong demand but with significant supply side challenges in London and key student towns. With this demand from students for more luxurious space, coupled with rising student numbers and strained supply, there is certainly potential for all sorts of investors to get top marks for their shareholders and earn strong income and profits from the sector.

Global investment into UK student housing. Source & credit: Savills Research file:///C:/Users/Marketing/Downloads/spotlight–uk-student-housing-2015.pdf

Ultimately it’s not just about what you invest in; it’s also where you invest in. In a recent report in the Property Wire, several student cities were highlighted as the next investment hotspot including Manchester, Liverpool, Birmingham and Brighton. Looking ahead, it is also likely that London will continue to be an attractive city for students from across the UK and around the world. However, there is the risk that prospective students will be put off by the cost of living in the capital (house prices have risen by 46% and private sector rents by 19% over the last five years according to the ONS).

‘So long as demand outstrips supply, upward pressure on both rents and capital values will continue to make the market an attractive proposition for investors, and we don’t expect the market to come off the boil for some time,’ says CBRE head of student housing advisory Jo Winchester.

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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UK Property Outlook 2016

UK property outlook 2016. London at sunset. Credit: wikipedia

Summary:

  • Overall positive outlook across the UK, but central London growth subdued.
  • Growth in the Northern cities due to governmental initiative and overall affordability amid high growth
  • Student property remains a good investment option given structural under-supply

The year started on a bleak note, no thanks to the current global economic climate. On the property front, the beginning of 2016 in the UK was headlined by policies to be imposed by the Chancellor on home-owners and landlords,such as future tax and stamp duty increases, and the abolition of mortgage income relief in 2017 – all this on top of predictions of a rise in Bank Rates, prompting doomsayers to predict an extreme downturn in the property market with projections stretching to 2021.

Read how the rates increase affects the Malaysian investor here

But, let’s not get ahead of ourselves. Forecasts are essential in helping the investor strategize, but it is crucial to take a closer look and weigh the predictions against the facts and what we already know:

Raising taxes and other rates are usually measures used by the government to protect the welfare of its house-buying citizens by preventing skyrocketing property prices and overarching speculation resulting from uncontrolled property-buying by wealthy local and foreign investors. The CGT in Singapore and Hong Kong and the RPGT in Malaysia, as well as FIRB taxes and stamp duty hike in Australia are a good example. We’re not saying you should ignore it; we’re just saying it’s not a deal-breaker.

To illustrate, a survey by the Council of Mortgage Lenders found that despite the negative outlook, landlords are confident that they will be able to absorb the impact of tax changes while over 80% are confident they won’t have to raise rents in order to cope.

As for all that talk on Bank Rate increases: the trend for pushing forward forecasts for the rate rise into the future has been going on since rates were cut in 2009; the prediction keeps getting pushed back in the end.

Currently, Bank Rates stand at 0.5%; the prediction for a rise was set for Dec 2016 or Jan 2017 following the first rate rise in the US in 9 years, last December. But with the global economic gloom of 2016 and comments of the Monetary Policy Committee (MPC) along with dramatic market movements, money markets imply that the first increase is poised for Aug 2019. Bank of England chief economist Andy Haldane said last year that the case for UK raising interest rates was “some way from being made” and that negative rates may still be needed.


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Time to Invest in Manchester

Planning to invest in Manchester? The £800m NOMA scheme near Manchester city centre spans 20 acres and when completed will feature four million square feet of offices, homes, shops and leisure amenities.The first phase of the project is a £100m headquarters for The Co-operative Group. NOMA will be developed over a period of 10-15 years.

EVERYONE loves London and wants to live in London. That’s understandable: after all, London is one of the world’s most historical cities and the capital of the world’s greatest empires of all time. It is also a cultural epicentre and one of the most exciting places in the world.

But #DidYouKnow that Manchester has been named by the Economic Intelligence Unit (EIU) as the best UK city to live insurpassing London – for the second year running?

Manchester has now become the UK’s powerhouse city – its fastest-growing to date, and the largest economic area outside of London with £56 billion gross value added (GVA) whilst London’s annual residential rent growth slows down with property prices hitting an affordability ceiling.

We are firm believers that the time has come to invest in Manchester. And here’s why:

 

3 REASONS TO INVEST IN MANCHESTER

1. Higher rental returns than London

With its population rising at three times the pace of the national average and exceptional transport links, Manchester is now the UK’s number one city for property investment. Average rental yields are 2.78% higher than the highest yielding London borough of Newham thanks to sustained demand for rental accommodation and one of the lowest levels of housing stock in the country.

According to Savills’ Matt Oakley, Manchester has the highest number of graduate retentions of any city in the UK. In 2014, Knight Frank’s Rental Revolution report states that rental return growth in Manchester increased by 5.27% – 13 times faster than yields in London.

Manchester has experienced capital growth of 21% in the last 18 months, with growing population and shrinking property supply forecast to drive property prices up by 22.2% over the next 3 years.

2. Government investments amounting to billions of pounds

The UK government plans to build an economic powerhouse in the north of England, with the creation of enterprise zones with favourable tax conditions and devolved local government powers designed to encourage investment.

To date, a £1 billion expansion of Manchester’s airport has been announced, which will drive an additional 10 million passengers annually, while connecting Manchester to more destinations around the world. Meanwhile, the construction of the HS2, the high-speed rail, will cut the journey time from Manchester to London to only one hour

3. Strong demand for short-term rental

The relocation of the BBC, ITV and Co-Op Bank headquarters to Manchester and the growth of NOMA reaffirm Manchester’s economic growth in the UK. As more corporations move their headquarters to Manchester, there will be positive job growth in the region, thus leading to a greater requirement for both long term and short term housing.

Manchester clocked the highest demand for property and accommodation with a short-term rental in the UK in June 2015.  About 43% of letting agents reported a significant increase in interest among prospective tenants in the region.

Manchester records about 10.3 million staying visits each year, with occupancy levels at hotels in the city hitting record levels in May 2015. This demand for short term accommodation has placed a strain on the already limited number of hotels and apartments in the city, particularly as more traveling business executives look for such accommodation types as the city continues to expand economically.

If you are looking for a viable investment in the UK, it’s time to start looking to Manchester. This city, with its huge student population and growing workforce, is definitely the place to plonk your pounds and pennies.

Call us at 03-2162 2260 or 016-228 8691 or 016-228 9150 for a chat. Our advice is free but valuable.

Additional reading:

  1. George Osborne intervenes to bring Chinese Premier & Investment into Manchester
  2. Chinese Agree Investments in Manchester
  3. PM Pushes China Investment in Manchester
  4. Manchester Rising as an Investment City

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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2015 Statistics: Best Buy-to-Let Investment in the UK

The ringgit has plunged. You’ve been saving diligently but the value of your savings is a fraction of what it once was. So you’ve decided to take matters into your own hands – you are investing in rental property to hedge against the ringgit (and get something back for your investment!).

Best Buy-to-let Investments in the UK

Congratulations! A wise decision, indeed.  But, where to invest?

Back to basics: invest in property located in countries/locations with

  1. stronger currency
  2. stronger economy
  3. job growth
  4. education opportunities

This help increases the value and ‘rentability’ of a property.

For most landlords with one or two properties, the key to success is capital growth. If the property you invest in grows in value, you will increase your total profits.

One market that has remained a haven for property investors is the UK. But, as London property prices soar higher and yields go lower, property in cities outside London are now showing great yield potential. The Brits, themselves, are beginning to look outwards of London as well. These places, really, are where you should put your money.

If you haven’t done your homework yet, take a look at HSBC’s annual research on rental yields around Britain. Their data show that Manchester is leading the pack on rental yields. The report has listed several profitable locations for investment.

London-lovers, don’t worry… HSBC has done a survey on rental yields in the various pockets of London, too. Read more here: http://bit.ly/1J5P4co


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260