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Care Homes Investment: Where is the UK’s Oldest Population?

Areas with a large older population face greater demands in terms of health and social care provision.

Over the past two decades, the average age of a UK resident has risen by 2 years, to 40. Within 30 years, 1 in 4 people is expected to be aged 65 and over. Freshly released data from Centre for Cities reveal where the youngest and oldest populations in the UK are concentrated.

Recent figures predict one in six Britons alive today will live to a century.

The number of centenarians in the UK currently stands at 15,000 and the predicted growth of this older population is staggering. The population of people aged 90 and over has grown more rapidly than other age groups in recent years with forecasts revealing that around 10 million people alive today will reach their centenary!

Such findings have prompted the UK government to allot more than £300m to support the ageing population. Business Secretary Greg Clark announced that £210m will go towards the development of early diagnostic tools and innovative treatments while £98m will be spent on a ‘healthy ageing programme’ designed to help the elderly with the quotidian affairs that come with old age.

In conjunction with the government’s ambition to tackle dementia, England’s leading cause of death, another £40m will go to a dementia hub that will be established in London in partnership with University College London. The hub will host 350 leading scientists researching new treatments for the debilitating disease, supporting the government’s agenda to have the best dementia care internationally by 2020.

UK’s Oldest and Youngest Population

Freshly released data from Centre for Cities reveal where the youngest and oldest populations in the UK are concentrated. According to the independent think tank, over the past two decades, the average age of a UK resident has risen by two years, to 40. Within 30 years, one in four people is expected to be aged 65 and over.

While the youngest population in the UK reside in Slough with an average age of 33.9, the oldest population belongs to Blackpool, a seaside resort on the Irish Sea coast of England with an average age of 43.2. Following Blackpool are fellow coastal cities: Worthing (43), Bournemouth (42.8) and Southend (42.2). More than one in five residents of each city were 65 and over in 2016 — this seems to illustrate the attraction of the seaside for those in retirement  and welcoming their sunset years.

The oldest population in the UK is in Blackpool, a seaside resort on the Irish Sea coast of England with an average age of 43.2. Image by The Beach Guide UK

Blackpool: Poor Health, Rich Demand for Care Homes

Areas with a large older population face greater demands in terms of health and social care provision. The 2017 Health Profile for Blackpool reveals that the health of the people there are generally worse than the England average.

According to a report by Joint Strategic Needs Assessment (JSNA), Blackpool has a higher recorded prevalence of dementia in those aged over 65, with a 3.4% population in Blackpool compared to 3.2% nationally. Not surprisingly, the majority of admissions to care homes in Blackpool is due to dementia.

The UK is alarmingly ill-prepared for this rapidly growing population, as JSNA reveals that even family carers of people afflicted with dementia themselves are infirm. This called for NHS to treat dementia as a priority area and thus, a National Dementia Strategy was launched in 2009. However, in 2011, NHS Blackpool conducted a survey of local GPs which suggested that dementia care of every degree still has many serious improvements to make, particularly towards the development and implementation of local care pathways and education programmes to meet GP requirements. Overall dementia care in Blackpool must improve and expand dramatically to tackle the increasing number of people with the disease.

Figure 1 – Blackpool: Males and Females aged 65+ expected to have dementia (projected to 2030)

Blackpool has a higher recorded prevalence of dementia in those aged over 65, with a 3.4% population in Blackpool compared to 3.2% nationally. Not surprisingly, the majority of admissions to care homes in Blackpool is due to dementia. Image by JSNA BLackpool.

The JSNA report also stated that the next common health crisis besetting the older population in Blackpool is depression, with depression rates expected to rise in the following years.

Again, it must be stressed that well-equipped and well-staffed care homes that cater to a range of diseases besetting the elderly, is not confined to Blackpool; the media is fraught with news of poorly-run and ill-equipped care homes across the UK.

Thus, the UK care sector is in urgent need of dementia-specific care facilities and nursing, with several being closed down due to an inability to meet Care Quality Commission guidelines and regulations. Moreover, care homes of substantial quality are particularly in high demand!

What inevitably trails such conditions is a thriving market that benefits investors. It is evident that high demand and seemingly perpetual relevance will continue to propel the care home market forward, and a weighted analysis of the yields will undoubtedly manifest the immense potential of this asset class.

Care Homes Investment: A Stand Out Asset Class

Care for the elderly generates in excess of £14.5 billion for the UK economy. According to The National Audit Office’s 2014 report into Adult Social Care, care needs are climbing. Effectively, the government is predicting that 1.7m more adults will require some form of care and support over the next 20 years.

Given its escalating demand, property group Knight Frank has placed care homes at the top of the list of high returns from property in the health sector, where yields of up to 10% are common.

Aside from rewarding returns, this commercial property investment also offers an exit in the form of a sell-back option to the developer at an appreciated value.

Carlauren Lifestyle Resorts Blackpool, once completed, will be one of the latest lifestyle quality care homes in Blackpool, offering investors 10% returns assured for 10 years. Exit is available from year five onwards. Alongside access to 24/7 care home packages, the luxurious 61-studio care home scheme located on Blackpool’s seafront boasts spectacular sea views, fine dining and bar, cinema, hair and beauty salon, and spa.

Feel free to contact the team at CSI Prop for more information and how to build an impressive property portfolio.

By Nimue Wafiya

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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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International Applications to UK Universities Hit Record High

So much for Brexit: latest figures show that the number of EU and international students applying for university places in the UK has increased to over 100,000 for the first time, a rise of almost 8% compared to last year. Image by Universities UK

The number of international applicants into UK universities rose by 11.1% to 58,450, the highest number on record.

Latest UCAS figures show that the number of applications by EU and international students for university places in the UK has increased to over 100,000 for the first time – this is a rise of almost 8% compared to last year.

UCAS (The Universities and Colleges Admissions Service) operates the application process for a large number of universities in the UK. Its figures show that the number of EU applicants increased by 3.4% to 43,510. Last year, the number of EU students applying to British universities fell by 7%, right after the Brexit vote results.

HESA figures show that over the past decade, non-EU international applicants rose the highest, by 70%, compared to EU students at 48% and UK students from outside the region at 24%. Chart from Cushman & Wakefield Student Accommodation Report 2018

Meanwhile, the number of international applicants rose by 11.1% to 58,450, which is the highest number on record. HESA figures show that over the past decade, non-EU international applicants rose the highest, by 70%, compared to EU students at 48% and UK students from outside the region at 24%. Amongst international students in the UK, the highest numbers come from China, Malaysia and Hong Kong. Latest statistics place China, Malaysia and the US as the top three foreign student nationalities in the UK.

One factor contributing to the increase in overall applications is the weaker pound. Since the UK voted to leave the EU on 23 June 2016, the pound had devalued sharply, falling by as much as 21% per cent against major currencies. This makes studying in the UK a more affordable option for foreign students seeking a British education, particularly those from countries with lower exchange rates compared to the sterling.

Amongst international students in the UK for the 20015- 2015 period, the highest numbers come from China, Malaysia and Hong Kong. Latest statistics place China, Malaysia and the US as the top three foreign student nationalities in the UK. Chart by Cushman & Wakefield Student Accommodation Report 2018.

An explanation for the rise in EU students, in particular, could be the reduced tuition fees that they currently qualify for. Prospective students could be making a last-ditch effort to secure places in a British university before the UK formally leaves the Union, and the subsequent increase in fees.

The Government had announced that EU students starting in this academic year would be entitled to reduced fees and funding support for the duration of their course, even after the UK leaves the Union. EU nationals who have resided in the UK for over five years are also able to apply for undergraduate maintenance support and postgraduate loans.

Ultimately, British universities continue to be world-renowned and sought-after for their quality education. The prestigious University of Oxford and Cambridge are ranked number one and two, respectively, in the Times World University Rankings 2018. A total of 31 British universities managed to rank in the top 200 worldwide.

Helen Thorne, Director of External Relations at UCAS, said: “The UK’s universities are highly popular with EU and international students because of the quality of the teaching and experience they offer.”

For quite some time now, university-managed accommodation in the UK have been unable to keep pace with student numbers, giving rise to privately-managed purpose-built student accommodation (PBSA). The popularity of PBSAs has also been boosted by a more discerning and affluent student population, which demand a higher standard of living than private landlords in the UK can provide. PBSAs are typically located close to universities and the city centre, and are well-equipped with a myriad of amenities.

This rapid increase of EU and international students, upon the backdrop of declining numbers of UK home students, will continue to fuel the need for commercial student property, granting investors a brilliant opportunity for investment in one of the UK’s top performing asset classes.

One up-and-coming PBSA development in the Liverpool city centre, Natex, is a impressive 566-unit student residential scheme, approximately 5 minutes walk from two of the UK’s top universities (University of Liverpool and Liverpool John Moores University). It offers a unique opportunity for commercial property investors with 9% nett rental returns assured for 5 years. Construction is poised to begin in Aug 2018, and completion is expected in Q3 2020.

By Ian Choong

Source:


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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Landlords: Abide by UK Energy Efficiency Law or Face Fines

UK residential and commercial property landlords must abide by minimum energy efficiency standards effective today or face fines.

Hundreds of thousands of UK residential and commercial landlords could face fines for failing to make their rental homes more energy efficient once legislation comes into force. The regulation takes effect today (1 April) for new rental lets and renewals of tenancies, and for existing tenancies, on 1 April 2020.

A fine of up to £5,000 can be issued for those renting out homes that fall under the lowest F or G rating in the Energy Performance Certificate (EPC). Under the law, it is illegal for landlords to rent out property that breaches the requirement for a minimum E rating unless exemptions apply.  

Like the Landlord Licensing scheme (if you are a landlord, read about the scheme here), the requirement for energy-efficient homes is not news, having been set out in The Energy Efficiency (Private Rented) Property Regulations 2015, and the onus for compliance rests with property owners and landlords.

The older the property, the poorer its energy efficiency is likely to be. Landlords with homes built in the Victorian era and early part of the twentieth century ias particularly at risk of being caught out as these types of property are often most lacking in insulation. The Department for Energy and Climate Change said when it announced the move that 65% of F and G EPC rated private rentals were built before 1919.

Many properties that are F or G rated could be made compliant just by making one change. For example, 40% of privately-rented properties could be improved above an F or G category just by installing loft insulation.

Energy Efficiency Regulation Impact on UK Rental Market

Chief executive of ARLA Propertymark, David Cox, says: “There isn’t a huge amount of awareness among  UK landlords and tenants on the energy efficiency laws.

“However, over the last five years, the number of properties which are EPC rated F or G has gone down from around 700,000 in 2012, to less than 300,000. Therefore, even without statutory enforcement, UK landlords are responding to tenants’ demands for better quality, and better insulated properties.”

However, statistics seem to suggest that landlords are behind in getting their properties ready for the deadline. Monthly data by the Association of Residential Letting Agents (ARLA) show that overall rental properties managed by letting agents fell by 5% in February compared to January, the lowest level since May 2016.

Cox explained that the drop in rental supply indicates that UK landlords are cutting it fine and removing their properties from the market to make the necessary changes before the regulation takes effect.

“We could see up to 300,000 properties taken off after the deadline passes because they don’t reach the minimum requirements,” he warned.

It will, however, be difficult to know how UK landlords will be policed, says Cox, adding that less than 500 landlords are prosecuted every year and adding new laws is unlikely to improve prosecution rates.

UK property landlords can find out about recommended improvements for their property by checking their Energy Performance Certificate Recommendations Report, or obtaining a Green Deal Advice Report. There are many options for financing under the Green Deal and even receiving free insulation work under the Energy Company Obligation.

Benefits of Compliance for UK Landlords

The Department of Energy and Climate Change claims that increasing a property’s energy efficiency could increase its market value.

Data shows that the average annual cost of energy for an EPC band G property is £2,860, and £2,180 for an F rated property. This contrasts with an average annual cost of £1,710 for an EPC band E property.

Therefore a tenant whose home is improved from EPC band G to band E could expect to see their energy costs reduced by £1,150 a year so long as there were no wider changes in how they use energy in the property.

Research by AXA Business Insurance found the improvements most sought after by tenants were enhanced energy efficiency, through tools such as insulation, newer boilers or double-glazing.

Ultimately, it will result in cheaper heating and better quality of homes for tenants. However, at a time of consistent government change, increasing ambiguity and various tax increases, the proposed cost of changes at £2,500 per property is going to put further pressure on landlords, especially those outside the prime rental markets in London and the South East,” said Cox.

For detailed information about the new regulation, read: www.rla.org.uk/landlord/guides/minimum-energy-efficiency-standards.shtml

By Ian Choong

Source:


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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Australia has the Happiest Migrants in the World

Australia is ranked within the top 10 happiest countries in the world, holds the number 6 spot for the happiness of foreign-born migrants and is the seventh most accepting country of migrants.

Australia is a good place to settle for both natives and immigrants alike. And why not? The country has a sound economy and banking sector, good governance and some of the best education systems in the world. It is home to not one, but three, of the World’s Most Liveable Cities.

How happy are you in your own country? More specifically, if you now permanently reside in a country that is not your own, how happy are you living where you are now?

Well, if you live in Australia, chances are that you’re a happy camper!

A recent study revealed that Australians — both its native citizens and migrants — are among the world’s happiest people.


Australia’s Top Scores for Happiness

The World Happiness Report 2018, which takes a deep look at how immigration affects the happiness of societies, ranks Australia as the top 10 happiest countries in the world. The report, also ranks Australia as number 6 for the happiness of foreign-born migrants and the seventh most accepting country of migrants in the world. This is especially interesting, given that most of the world’s happiest countries have a high proportion of migrants. In Australia, half the population were either born overseas or has one or both parents born overseas.

Clearly, Australia is a good place to settle for both natives and immigrants alike. And why not? The country has a sound economy and banking sector, good governance and is one of the best education systems in the world. It is home to not one, but three, of the World’s Most Liveable Cities, with Melbourne holding the record of the most liveable city for 7 consecutive years!

Little wonder that Australia’s population growth has been on an uptrend, increasing by another 1.6% to 24.7m in the 12 months to end Sept 2017. That’s one person added every 1 minute and 26 seconds! As expected, the state of Victoria experienced the highest growth in the country, charting a rate of 2.4%.

Is there any surprise, then, to the ever-growing  property market within Australia’s largest cities like Melbourne, and Sydney and Brisbane?,

A recent article on the spiraling growth of Melbourne CBD illustrates the population expansion of the city in detail, and how the city is expected to hit 266,455 residents by 2037 due, largely, to births and immigration, thus driving demand for homes.

But, back to the subject of happiness. The World Happiness Report 2018 says that a factor determining immigrants’ happiness is how accepting the people of the host country are. It also notes that among the 10 happiest countries of the world, Australia has the highest percentage of migrants at 28% of its population.

Perhaps Australia is the most successful multicultural society in the world after all.

Spread the happiness around. Let us know how happy you are wherever you are in the comment box below!

By Marzatul Ruslan

Source:


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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The General Election 2018 & the Malaysian Property Market

As the country gears up for the general election, questions abound on its impact on the housing market.

What’s the post-election outlook for the Malaysian property market? 

With Malaysia’s General Election 2018 (GE14) looming just around the corner, house-buyers and investors will undoubtedly ask the question: “What is the post-election outlook for the Malaysian property market?

Bank Negara had announced in November 2017 that the property glut in Malaysia reached its highest level recorded in the past 10 years. At the same time, Deputy Finance Minister Lee Chee Leong announced that the amount of unsold residential units had risen by 40% during the first half of 2017.

During Q1 2017, unsold residential units climbed to 130,690, the highest in the decade.

Over the past few years, the trend in new housing supply has been skewed towards the higher-end property segment. Developers favour the higher-end property segment due to the higher margins it is able to generate, and tend to neglect affordable housing, with it not being as profitable.

Thus, right now, the Malaysian property market is characterised by an oversupply of non-affordable housing. Houses remain out of reach for many households due to the failure of the market to produce a sufficient quantity of affordable housing for the masses.

The maximum affordable house price in Malaysia is estimated by Bank Negara to be RM282,000. However, in 2016 the actual median house price was RM313,000, beyond the means of many households. From 2007 to 2016, house prices grew by 9.8%, while household income only increased by 8.3%.

Housing affordability by income levels in Malaysia, in 2016

Bank Negara reports that out of the almost 150,000 unsold properties (146,497) nationwide in 2017, 83% were priced above RM250,000. 61% of the total unsold units were high-rise properties, 89% of which were priced above RM250,000.

By state, Johor had the largest share of unsold residential units, having more than a quarter of the total units (27%), followed by Selangor (21%), Kuala Lumpur (14%) and Penang (8%).

83% of unsold units in Malaysia in 2017 were above RM 250,000.

Bank Negara governor Tan Sri Muhammad Ibrahim said the government’s efforts in affordable housing are very much needed, and cites the failure of the property market to provide supply in the affordable range.

“If you look at the numbers in 2014 and 2015, the numbers of affordable houses were quite good, accounting for 75% of the supply of residential properties. But in 2016 and 2017, the numbers were reversed, as only 25% of residential properties were in the affordable range.

“Obviously, there was a market failure. If the government did not come in and provide the additional supply of affordable houses, the problem would have been acute,” he said after releasing Bank Negara Malaysia’s 2017 annual report and the Financial Stability and Payment Systems Report 2017.

The Government had, in November, frozen approvals of luxury property developments indefinitely and temporarily halted the development of shopping malls, commercial complexes and condominiums priced above RM1mil to address the oversupply; it is quite clear that the market is on a decline. Works Minister Datuk Fadillah Yusof has since clarified that this freeze would be applied on a case-by-case basis.

Malaysian property market in 2018 and the impact of GE14

There has been much concern that the Malaysian property market is in a bubble. Fears are that the current glut together with the increasing supply pipeline of properties still in construction, will lead to a market crash soon.

Real estate expert Ernest Cheong warned that developers were aggressively marketing their properties because they were in danger of losing their bridging finance from banks. The bridging finance is used by developers to support their construction.

“This is where the danger starts. I predict if this continues, markets will crash within 24 to 30 months because consumers do not have the financial capacity to buy properties any more. Furthermore, developers who started building two years ago are expected to flood the market further with their units.” he said.

Institute for Democracy and Economic Affairs’ (IDEAS) senior fellow Carmelo Ferlito stated, “Malaysia is undoubtedly experiencing a housing bubble and the unsold properties are a natural consequence of this bubble.”

Ferlito said it would be crucial for Bank Negara to refrain from supporting the property industry by lowering interest rates or the government bailing out developers. “Intervention will only result in a longer and more painful crisis with prices kept artificially high by the central bank when the market is demanding for lower prices.”

IQI Global chief economist, Shan Saeed opined that the property market in the country is merely undergoing some ‘sector changes’, and that there was no danger of a bubble.

“In some areas, property prices are going up, but there are also areas where the price is going down. The property market moves with GDP (gross domestic product) growth, and the growth is currently very solid and on the upsurge. Customers are still buying (property) because income levels are rising. So I believe these concerns concerning the property market are unfounded,” he said.

Real estate firm Rahim & Co stated that Malaysia is unlikely to face a property bubble with the several pre-emptive measures Bank Negara has already put in to stabilise the market, some of which include abolishing the Developers Benefits Under Liquidity Scheme (DIBS), and tightening of the conditions for financing.

CBRE WTW managing director Foo Gee Jen cites the country’s strong fundamentals and measures by Bank Negara as having moderated the impact from price growth in the last market boom.

“While housing prices in Malaysia have been on the rise, they have not reached an unjustifiable level where the price unreasonably exceeds its economic returns” he says.

Credit rating agency Moody’s expects a decline in property prices due to the supply overhang. “In our view, the increasing oversupply and the prospects of a material property price correction will continue to build as new supply enters the market and poses a risk to Malaysian banks’ asset quality,” it said.

Savills Malaysia managing director, Datuk Paul Khong said that house buyers are currently adopting a wait-and-see attitude against subdued and lacklustre transaction activities in the property market.

“It is no surprise to the sector that 2018 is an election year, of which market sentiment is quite mixed. We, therefore, foresee the property market to be rather flattish this year with nominal excitement,”

“We do, however, expect some market movements in the later second half of 2018 (2H18) — especially if the GE14 goes well and the confidence factor returns,” he said.

Savills executive chairman Datuk Christopher Boyd adds that, regardless of increase in demand, “it will not cause a price explosion because it will be tempered by quite a considerable backlog that some developers need to clear as well as the increasing supply.”

Virata Thaivasigamony of property consultancy CSI Prop states that the upcoming General Elections is expected to give a boosting momentum and direction for the country’s property sector.

“We expect GE14 to set the pace for the future, and go some way towards restoring the current lack of confidence in the local property market,”

“Currently the local property market is on a downward trend due to supply not meeting the demand for affordable housing, and demand not meeting the oversupply of higher-end properties. It will take some time till developers rebalance the available supply, and the market regains its footing,”

“The ringgit has strengthened so now would be a ideal time to invest in foreign property, in markets like the UK and Australia, with a potential for great returns,” he added, highlighting recent news reports that the ringgit had strengthened to a 2-year high this month.

Uncertainty still clouds the local market going into 2018, and the current glut of property, with more still in the pipeline, does not bode well for investment prospects in Malaysia at this time. With the ringgit currently at a 2-year high, property in overseas markets like the UK and Australia are more attractive than ever, offering investors an opportunity to take advantage of the currency rate and get on to the overseas investment bandwagon.

Article by Ian Choong

Sources:

  • http://www.freemalaysiatoday.com/category/nation/2017/11/18/bank-negara-property-glut-highest-level-in-a-decade/
  • http://www.freemalaysiatoday.com/category/nation/2017/11/13/unsold-residential-units-rise-40-in-first-6-months/
  • http://www.theedgemarkets.com/article/cover-story-higher-inventories-and-lower-margins-seen-among-developers
  • http://www.theedgemarkets.com/article/govts-housing-schemes-do-not-distort-market
  • http://www.freemalaysiatoday.com/category/nation/2017/11/14/property-market-will-be-badly-hit-in-2018-says-expert/
  • http://www.freemalaysiatoday.com/category/nation/2017/08/20/property-market-bubble-set-to-burst-says-think-tank/
  • http://english.astroawani.com/business-news/there-no-property-bubble-malaysia-160551
  • https://www.nst.com.my/business/2018/02/334879/malaysia-unlikely-face-property-bubble
  • https://dbv47yu57n5vf.cloudfront.net/s3fs-public/pullout/20180323_ep_2616_locked.pdf
  • https://www.thestar.com.my/business/business-news/2017/11/27/moodys-expects-decline-in-property-prices-due-to-supply-overhang/#zI4BuSEAHm0lxl7s.99
  • http://www.theedgemarkets.com/article/ringgit-strengthens-more-2-year-high
  • Charts from BNM Quarterly Bulletin, Third Quarter 2017
  • Featured Image from hazuism.blogspot.com
  • https://csiprop.com/malaysian-property-market-decline-2018/
  • https://themalaysianreserve.com/2018/04/02/property-market-on-wait-and-see-attitude-pre-ge14/

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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Liverpool: Hotspot for Economic & Population Growth

A new survey on the UK’s 24 leading urban economies saw Liverpool rated as one of the top four hotspots in the UK for economic growth potential.

Liverpool’s economic growth rate, coupled with investments into the city’s development and infrastructure, is poised to create more jobs, further driving demand for housing and cementing its reputation as one the best-performing property investment locations for landlords.

The results of a survey on the UK’s 24 leading urban economies saw Liverpool rated as one of the top four hotspots in the UK for economic growth potential.

The study was executed by a global design and infrastructure consultancy known as Arcadis. To achieve the rankings, six key features of a prospering city were calculated and compared: workforce and skills, infrastructure, business environment, place, city brand and housing. Liverpool was ranked within the top four economic hotspots together with Edinburgh, Oxford, and Cambridge.

The report was welcomed by both City Region Metro Mayor Steve Rotheram and managing director of the Liverpool City Region LEP, Mark Basnett.

Mr Rotheram said: “This is an encouraging report but, in a sense, it tells what we already know. External validation is always useful and helps to signal to UK and international investors the huge opportunities that exist within the city and wider city region. Devolution gives us a huge opportunity to realise that potential by prioritising the areas identified in this report.”

The report revealed that Liverpool’s strengths were its brand, infrastructure, positive business environment and quality and affordability of housing supply — the latter has earned Liverpool a considerable number of titles as one of the UK’s best buy-to-let areas.

 

Not the First Time

A look at Liverpool’s economic history reveals that its position at the top of a list on economic growth is not some newfangled occurrence. In 2015, figures by the Office for National Statistics (ONS), revealed that Merseyside, a metropolitan county that comprises Liverpool among other cities, experienced an economic growth rate faster than London, Manchester and any other major British city.  Just last year, Liverpool was voted as ‘The UK’s Buy-To-Let Hotspot’ for property investment returns and capital growth. With this positive trend extending into 2018 along with major regeneration schemes, Liverpool and economic growth are set to be well-acquainted in the years to come.

Liverpool’s strengths were its brand, infrastructure, positive business environment and quality and affordability of housing supply.

 

 

Liverpool’s Knowledge Quarter: Catalyst of Economic & Student Population Growth

What will further catapult Liverpool’s economic progress is the Knowledge Quarter, a £2bn vision to establish  the city as one of the world’s leading districts for science, technology, innovation and education.

For this goal to be actualized, it is crucial for well-resourced and world-leading universities to take the lead due to their resources and conducive environment. What is usually forgotten is that labs and classrooms are the birthplace of pretty much all the latest technology. AI and deep learning, automation and predictive analytics have all, in some form, started in an educational institution and not a traditional software development environment. The Knowledge Quarter is a perfect example of the UK’s progress towards this major goal, marking its transition into the next digital revolution and cementing Liverpool’s position as one of UK’s core cities taking part in it.

With several universities already residing in Liverpool’s Knowledge Quarter, a growing student population is bound to follow — Liverpool is home to a whopping 67,000 students!

Worth noting is the rising demand for proper accommodation  in the undersupplied student property market. Found below are figures that illustrate the dire shortage of purpose-built student accommodation (PBSA) in Liverpool as of late 2017:


Student Population: 67,000

Amount of Housing Available Through University: 4,500
Amount of Total Student Housing Available: 17,857
Potential Yields: Approx. 8% per annum

 

This shortage, a burgeoning student population and the relevance of the Knowledge Quarter as a one-stop education and technology centre, make PBSA in Liverpool the ideal investment.

Opportunities for investment are also found in the residential property sector as high house rental values have given Liverpool’s city centre some of the highest rental yields in the UK. According to latest research, Liverpool and Nottingham were the best performing property investment locations for landlords with average nett rental yields of 6.2%, no doubt greatly credited to the education sector. With Paddington Village, a massive regeneration scheme within the Knowledge Quarter, poised to create up to 10,000 jobs and fuel demand for housing, we see this trend continuing into the future.  

With Liverpool’s Knowledge Quarter and education centres in mind, it would be a good idea to dip your toes into the pool of Liverpool’s looming success as soon as possible! 

Feel free to contact the team at CSI Prop for more information about how to get involved with Natex and how to build an impressive property portfolio.

By Nimue Wafiya 
Additions & edits by Vivienne Pal

Sources:

http://lbndaily.co.uk/liverpool-one-top-four-hotspots-growth-potential-new-report-says/

http://www.finsmes.com/2018/03/new-report-reveals-liverpool-is-one-of-the-top-hotspots-for-growth.html

https://www.timeshighereducation.com/blog/uk-cannot-compete-digital-age-without-top-universities

http://www.primesite-developments.com/5-best-student-towns-invest/

www.movecommercial.com/12439-2/

https://www.propertywire.com/news/uk/liverpool-nottingham-top-buy-let-investment-rankings-uk/

www.csiprop.com/uk-property-outlook-2018/

www.resolutionfoundation.org/media/press-releases/merseyside-grew-fastest-in-a-strong-year-for-britains-major-city-economies/

www.csiprop.com/liverpools-knowledge-quarter-world-class-innovation-district/

www.csiprop.com/properties/natex/


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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Investment Opportunities in UK’s Youngest Cities

A younger population can bring advantages such as attracting businesses, which will have a larger pool of working age residents to draw from.

While recent data by the Office for National Statistics (ONS) show that the UK is facing an aging population, key cities remain a hub for the young. What difference does the age of a city make?

With its beautiful, calming scenery and rich history and culture, the UK is home not just to the native Brit, but also millions of immigrants.

Over the past 20 years, younger people have increasingly chosen to live in the urban areas of the UK, while the share of older residents has fallen. Statistics show that the UK’s edgy and lively cities remain a favourite among the younger generation with 62% of people aged 18 – 34 living in cities in 2016 compared to 58% in 1996. In contrast, the share of people aged 65 or older fell from 51% to 46% during this period.

A recently released study by the Centre for Cities reveals some of the youngest cities in the UK, with  Slough as the clear winner at the youngest average age of 33.9. London, popularly assumed as the city with the youngest population, comes in at sixth place, with the average youngest age of 36.5. Here is a list of some of the youngest cities in the UK, with average ages of under 40:

Oxford   34.4
Luton   35.1
Cambridge   35.4
London   36.5
Bradford   36.7
Birmingham   37.6
Bristol   37.7
Manchester   37.8
Reading   37.8
Liverpool   38.2
Plymouth   39.4

Investment opportunities  

What draws the younger population to these cities? Job opportunities and expansion, good infrastructure, facilities and educational institutions — these are the essential pull factors. On the other hand, a younger population can bring advantages such as attracting businesses, which will have a larger pool of working age residents to draw from.

Among the cities which have been getting younger, Oxford, Cambridge and Brighton have large shares of high-skilled, high-paying jobs, and all offer good access to quality schools.

Manchester, the UK’s fastest-growing city, is Europe’s second largest creative tech hub with 70,000 people now working in the city’s creative, digital and tech industries. Like Liverpool, it is also home to some of the world’s leading universities, offering a huge cache of thinkers to future employers.

It is in cities like these that purpose-built student accommodation are at high demand, offering commercial property investors opportunities to grow their wealth in this high-yielding and unique sector. 

In Bristol, for example, the number of students needing accommodation is projected to grow to 44,000 by the 2018/19 academic year. The growth can be attributed to the city’s two notable universities, the University of Bristol and the University of West of England, which make up a total of 40,000 full-time students. Little wonder that student property is a top investment in Bristol.

Meanwhile, Liverpool’s £2bn vision to develop a world-class Knowledge Quarter will further reinforce its status as one of the best student cities in the world. The Knowledge Quarter represents an opportunity for significant future investment and regeneration, and will ultimately create more high-skilled jobs in the city. By attracting investment and creating jobs, people’s lives are improved and opportunities are created, thus attracting a greater number of young settlers and driving housing demand. 

Private Finance and Savills have now placed Liverpool and the overall Northwest as the top hotspots for buy-to-let investors with some of the highest comparative returns.  Does this pique your interest to grow your wealth in cities with a youthful population? Speak to us and find out more. Or send us a comment below!

Next week, we talk about cities with an ageing population and the opportunities they hold. Stay tuned.

Source:

http://www.bbc.com/news/uk-43316697

csiprop.com/the-top-investment-in-bristol/

csiprop.com/liverpools-knowledge-quarter-world-class-innovation-district/

csiprop.com/uk-property-outlook-2018/

csiprop.com/manchester-original-modern-city/

 

By Marzatul Ruslan

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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Where is the Best Place to Invest in UK Student Property?

While the final numbers have not yet been released, Jones Lang Lasalle (JLL) had projected the total investment volume of UK student property in 2017 to be in excess of £5 billion as demand remains high. Image taken from Priestley Lettings UK

UK student property continues to provide rewarding returns to investors over the years. While the final numbers have not yet been released, Jones Lang Lasalle (JLL) had projected the total investment volume of UK student property in 2017 to be in excess of £5 billion as demand remains high.

Recent data reveals that annual returns for student property between 2012 and 2016 reached an impressive 11.8%. Comparatively, in the same period, residential property was at 7.8% and commercial property, as a whole, at 7.4%.

According to data gleaned from the ONS & UK HPI rental growth index, CBRE student accommodation index and IPD quarterly property index, UK student property delivered 10.2% total returns —  a combination of 5.4% rental income and 4.8% capital growth.

Annual returns for student property between 2012 and 2016 reached an impressive 11.8%, a far better performance compared to residential property and commercial property as a whole. Image credit: Property Partner UK.

There was approximately £3.1bn invested in the UK purpose-built student accommodation market in 2016, making it the second highest year on record after the exceptional 2015, when 74,500 beds were traded at a total value of £5.9bn. While the final numbers have not yet been released, JLL had projected the total investment volume of UK student property in 2017 to be in excess of £5 billion as demand remains high.

More students than ever are studying away from home, meaning the demand pool for accommodation continues to grow. In 2016/17 the number of students living in private accommodation increased to 141,210, a growth of 6.4% compared to the previous year. This trend is predicted to continue, fueled by the inability of university-managed accommodation to keep pace with student numbers, and a more discerning and affluent student population.

A chart by Cushman & Wakefiled on the growth of studio bed spaces from 2014- 2017. Image: Cushman & Wakefield UK Student ccommodation Report.

UK universities continue to recruit an increasing number of students from outside the UK, with EU students growing by 48% and international students by 70% over the last decade. There are now over 397,000 students from outside the UK, making up nearly one quarter, or 23% of the student population.

Dan Gandesha, founder of investment platform Property Partner, said that during tough economic cycles where it’s harder to secure a job, people are more likely to go to university and extend their studies. This, he said, increases demand and while the number of places does not spike, it does help underpin the demand for student property.

“Having those counter-cyclical characteristics is quite unusual for an investment class. It’s very different to (other) commercial property. Residential property to some extent isn’t affected in the same way, but it doesn’t have the same attributes of student property, whereby the numbers and the demand go up (in a downturn),” Gandesha added.

 

UK student property hotspots

To get the best returns, investors of UK student property should pay attention to cities where universities have plans to grow and relocate campuses, as well as look at cities where the supply and demand balance is favourable. Better value investments can be found in historic and emerging regional locations that have good quality infrastructure and institutions with excellent track-records in education.

For instance, the University of Bristol is planning to invest £300m over the next five years in its brand-new Temple Meads campus, which will be able to accommodate an additional 5,000 students, boosting the demand for student property in the city.

Liverpool’s £2bn vision to establish a 450-acre Knowledge Quarter will further reinforce its status as one of the best student cities in the world. The Knowledge Quarter will encompass Liverpool John Moores University, the University of Liverpool, Liverpool School of Tropical Medicine, Liverpool Science Park, the new Royal Liverpool University Hospital, and will transform the area into one of the world’s leading innovation districts. These new innovations will prove to be a draw to students and working adults alike, fueling opportunities for investors of buy-to-let and purpose built student accommodation.

Birmingham has seen a record rise in the supply of student last year and is now home to 21,000 bed spaces, according to Cushman & Wakefield’s UK Student Accommodation Report. Birmingham is second-largest student city in the country after London, with a student population of around 65,000. The University of Birmingham, Birmingham City University, Aston University, University College London and Newman University are all situated in the city, keeping demand for student accommodation high.

With a current demand ratio of 1 student to 3 beds, UK student property is poised to remain a top investment asset class in the commercial property sector for some time to come. The counter-cyclical nature of this unique asset class, coupled with the UK’s world class education system (and the currently lower pound due to Brexit) will keep the flow of international students coming.

Source:

https://www.buyassociation.co.uk/2018/02/20/purpose-built-student-blocks-can-provide-healthy-returns-investors/

https://realassets.ipe.com/real-estate/sectors/alternatives/student-housing-market-revision/10018850.article

Cushman & Wakefield UK Student Accommodation Report

https://resources.propertypartner.co/invest-purpose-built-student-accommodation/

By Ian Choong

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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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What’s Trending: Becoming a Landlord in the UK

In the UK, becoming a landlord has become increasingly popular with recent data indicating an average increase of over 100,000 new landlords every year over a four year period since 2011/2012. Image by Simon Stannard from LinkedIn.

The reason behind this sharp upswing in landlords is greatly credited to the fact that they receive good income from rental property.

In the UK, letting out property has become increasingly prevalent. Recent data provided by HM Revenue & Customs (HMRC) indicate an average increase  of over 100,000 new landlords every year over a four year period since 2011/2012.

The reason behind this sharp upswing in landlords is greatly credited to the fact that they receive good income from rental property. With savers receiving lacklustre returns from banks and building societies, thousands more people are turning to the buy-to-let sector to fetch lucrative returns.

The figures prove this: according to HMRC, more than 1.9 million people received an income from property in the financial year 2015/2016. The total income earned by landlords in the UK reached £16.2 billion, an increase of £4.1 billion over a short span of only four years!

The annual personal income statistics published by HMRC also show that total income from property dividends almost doubled over the same period, from £42.5 billion to £83.8 billion, as the average income soared to £17,000 per investor.

Recent statistics released by the Office for National Statistics (ONS) on house price growth in the UK reveals a thriving property market. Additionally, the UK property outlook for 2018 illustrates the stability of the economy in the UK — it is no surprise that many have turned to the property market as a means of supplementing their income.


UK Landlords & The Rent Control Debate: It Isn’t Bad

Accompanying this spirited news, however, is talk of Labour leader Jeremy Corbyn’s pledge to enforce a cap on rent rises. Taken at face value, the news is bound to unsettle those involved in the property market, but, a closer look at long-term effects of the regulation could prove it to be quite advantageous for investors, tenants and renters alike. Investors, it appears, could find either condition advantageous.

Amid opposing views on rent control exists neutral ground where a notable point is made: with the number of renters continuing to rise, increasing the number of homes available should be higher on the priority list than capping rent rates. The British government, aware of the housing crisis plaguing the nation, has committed to a target of building 300,000 homes a year. But dissenters question if these homes will be affordable, and the realisation of this pledge remains to be seen.  

But, back to the subject at hand. The current state of rent rates are as follows: there is no limit as to how much landlords can increase rent rates across England. One of the proposed methods for bringing rents under control would be to ensure it can be increased at no more than the level of inflation.

Bricklane chief executive Simon Heawood, who supports the idea of rent controls, explains the bright side to the implementation: “Capped rent rises inside longer tenancies make a lot of sense. Renters get certainty that they’re not going to be priced out of their property on a whim, while UK landlords get happier tenants that stay longer and, therefore, improving returns. Indeed, rent rises could be lower than inflation if the market dictates, in which case we don’t believe tenants would be worse off.”

Whether or not Corbyn’s plans for rent control is implemented depends on Labour’s performance in the next general election. Ultimately, with or without the regulation, the property market continues to grapple with undersupply and a growing Generation Rent population, giving rise to opportunities for savvy investors.

 

Not the First Time, Not the Worst Time

Rents have been capped in the UK in the recent past. The Valuation Office Agency used to set a “fair” level of rent for each property, as well as calculating the amount by which rent could be increased, until the 1988 Housing Act came into play and reduced regulation in the sector.

Worth noting are other superpowers in Europe currently practicing rent control. Paris, Berlin, Munich and Scotland are all home to different types of rent control, yet their economies  continue to thrive. Paris, in particular, continues to be one of the most desirable property markets in Europe despite the cap!

What are your thoughts on rent control? Ever thought of investing in UK property? If you feel the urge to jump onto the landlord bandwagon in the UK, contact us!

Sources:

www.csiprop.com/regional-uk-property-tops-price-growth/

www.csiprop.com/uk-property-outlook-2018/

https://www.ft.com/content/134a8a32-cf73-11e7-b781-794ce08b24dc

www.buyassociation.co.uk/2017/04/20/build-rent-developers-investors-make-three-year-tenancies-norm/

https://www.propertywire.com/news/uk/becoming-landlord-becoming-increasingly-popular-uk/

https://www.buyassociation.co.uk/2018/03/06/rent-control-debate-caps-help-hinder-uk-tenants/

By Nimue Wafiya

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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 Commercial Property Investment Rose 66%

Natex, a new-build student property investment located strategically in the Liverpool city centre, is a commercial property investment with 9% returns p.a. with 5 years assurance.

Unlike residential property investors, commercial property investors benefit from certain tax exemptions (T&C apply), allowing for higher returns on investment.

According to prominent research outfit Savills, investments in UK commercial property has risen 66% to £4.2 billion in February 2018 compared with the same month last year.

Savills states in its February Market in Minutes report that despite economic pressures from Brexit, investor appetite for UK property remains strong. In 2017, total investment into UK real estate reached £65.4 billion, representing a 26% increase on 2016’s annual total.

Unlike residential property investors, commercial property investors benefit from certain tax exemptions (T&C apply), allowing for higher returns on investment.

CEO of Savills UK and Europe, Mark Ridley, commented: “January’s volumes demonstrate that investors are still looking beyond Brexit and are happy to commit to the UK to secure prime property with secure income characteristics. Based upon current projections, driven by a downward shift in equivalent yields, we expect total returns for average UK commercial property to be around 7% this year.”

In its latest report, the Investment Property Forum (IPF) said the outlook for 2018 has improved over the three months since its last survey was conducted, with average rental and capital value growth rates increasing in virtually all sectors.

Its UK Consensus Forecasts report, which surveyed 23 property consultants and fund and investment management houses, showed that the rental value growth average forecast had risen to 0.8% from 0.4% three months ago.

Student property sector stays robust

Student property, as a subset of the commercial property sector, remains a popular investment, boasting a low requirement of capital but yielding high returns.

According to CBRE’s student accommodation index, between 2012 and 2016, annualised returns for the sector totalled an impressive 11.8%. This can be compared to the residential sector at a still respectable, but lower 7.8%, and commercial property as a whole, at 7.4%.

Places at UK’s higher education institutions remain in demand worldwide. 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.

In 2015-16, there were almost half a million non-EU students in the UK, about one-fifth (19.2%) of the 2.3 million total. In the 2017/18 academic year, non-EU applications had risen by 2.2% even while EU applications had fallen ostensibly due to Brexit.

To date, there is a total of 1.7 million full time students in the UK. Of this number, 23% are foreign, bringing the growth of international students in the UK to a whopping 70% from 2006 to 2016.

23% of the 1.7 million fulltime students in UK are foreign. Above, HESA charts the largest international student nationalities in the UK over the past decade (Cushman & Wakefield).

The Government’s recent removal of the student cap will provide more spaces for the large number of foreign students applying to study in the UK, increasing demand for quality student accommodation.

New-build student developments like Natex in Liverpool and Bristol City House in Bristol continue to provide opportunities for the savvy investor thanks to their strategic location in the city centre and proximity to top universities.

UK care homes: fast-growing segment in commercial property sector

Care homes are another fast-growing segment of the commercial property sector. The UK is facing an aging population, with the threat of dementia becoming increasingly prevalent among the elderly. Patients suffering from dementia require specialized care, and living at a care home can ensure they have the best possible quality of life.

Julian Evans, Knight Frank’s Head of Healthcare said that the UK care homes market faces an imminent crisis due to a national shortage of beds. However, this crisis and acute undersupply of care homes has created opportunities for investors, and will continue to drive investor appetite in the coming years.

“The disparity of care bed supply and demand presents increasing opportunities for investors, and, combined with the fall in the sterling, has generated a truly global appetite for the sector.”

Research by ONS revealed that 1 in 4 people will be aged 65 years old in less than 30 years. Alzheimer’s Research states that 850,000 people live with dementia in the UK today. This figure is expected to balloon to two million by 2050. However, the supply of beds at care homes in the UK are not enough to meet this burgeoning demand.

Care home investments can offer up to 8% net-yield per annum for up to 25 years, as well as provide an exit clause or contractual buyback.

Got questions? If you’re interested in investing in UK commercial property, send us a comment or message below and we will get in touch with you!

Sources:

http://www.savills.co.uk/_news/article/72418/228196-0/2/2018/savills–uk-investment-rose-66–y-o-y-in-january

www.buyassociation.co.uk/2018/02/20/purpose-built-student-blocks-can-provide-healthy-returns-investors/

https://realassets.ipe.com/news/uks-2018-commercial-property-outlook-improves/10023400.article

http://www.ipf.org.uk/resourceLibrary/investment-property-forum-uk-consensus-forecasts–winter-2017-18–full-report.html

https://www.propertyfundsworld.com/2017/03/07/249343/crisis-uk-care-home-sector-provides-opportunities-developers-and-investors-says-kn

csiprop.com/the-top-investment-in-bristol/

csiprop.com/care-homes-investment-stand-asset-class/

UK Student Accommodation Report 2017/18, Cushman & Wakefield

By Ian Choong

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). 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