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Investors Can Look Forward to UK Rents Increase of 15%

Categories: Reading and Research

UK rents are expected to increase by 15% over the next 5 years, according to research by the Royal Institution of Chartered Surveyors (RICS).

The survey observed that smaller landlords were quitting the buy-to-let sector, affecting supply. “A reduced pipeline of supply will gradually feed through to higher rents,” RICS Chief Economist Simon Rubinsohn said.

Meanwhile, the supply of rental property in the UK continues to fall. In 2017, buy-to-let properties were sold at a rate of only 3,800 a month, leading to the first drop in the number of homes available to rent in 18 years, according to the latest report from the Ministry of Housing. 

In total, the number of privately rented homes in England fell by 46,000 last year — the largest reduction since 1988.

Buy-to-let properties decreased drastically last year. Source: Thisismoney.co.uk, Ministry of Housing, Communities and Local Government

The drop is attributed to the UK Government’s recent tax measures which, among others, increased stamp duty and reduced landlord relief claims against mortgage interest. The stamp duty changes have made it more expensive to purchase a buy-to-let property, and tax relief is set to drop further yearly until the 2020-21 tax year. 

These changes have made it less profitable for UK landlords, especially those on a mortgage, to rent out their properties. House prices have also grown faster than rents, prompting many landlords to exit the sector. Trade association UK Finance highlighted a 19% fall in new mortgages approved for buy-to-let homes in the UK.

Demand continues to rise, and rents are expected to spiral over the next few years. This points the way towards the purpose-built rental sector as a replacement for the traditional buy-to-let properties, which are often older houses on the outskirts of city centres, geared toward owner-occupiers.

Still, rental properties located in prime city centre locations remain attractive to young working professionals who are unable to purchase their own homes. These rental properties are set to rise in the face of dwindling buy-to-lets.

Developing cities in the UK regions like Manchester, Birmingham and Liverpool are growing quickly, and properties in the city centre offer access to business opportunities, employment, and entertainment demanded by a modern working lifestyle.

While interest rates remain low, investors looking towards the UK can thus take advantage of the shortage in supply for rental properties, investing in prime locations in developing cities where the demand is the highest.

Manchester, Liverpool and Birmingham are the best places to invest in the UK. Click on the hyperlinks embedded into the cities if you want to learn more.  If you are interested to explore investing in regional UK property for high returns, don’t hesitate to give us a call at +65 3163 8343 (Singapore), +603 2162 2260 (Malaysia), or email us at info@csiprop.com!

By Ian Choong
Edited by Vivienne Pal

Sources:

  • https://markets.businessinsider.com/news/interestrates/uk-property-rents-to-rise-15-over-next-5-years-rics-1027444780
  • https://static.halifax.co.uk/assets/pdf/mortgages/pdf/August-2018-House-Price-Index.pdf
  • https://www.thisismoney.co.uk/money/buytolet/article-5771875/Landlords-offload-4-000-buy-lets-MONTH.html
  • https://www.savills.co.uk/blog/article/243068/residential-property/buy-to-let-landlords-face-falling-yields.aspx
  • Featured image: alfahir.hu

 

 

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Manchester Top 10 in the World for FDI

Categories: Reading and Research

Manchester has chalked up yet another feather in its cap. The northern city now ranks among the world’s top 10 most popular cities for global investment, according to IBM’s latest Annual Report on Global Location Trends.

The report, IBM’s eleventh, tracked the movement of investment flows and its impact on economic growth around the world. This latest accolade adds credence to Manchester’s track record as one of the fastest-growing cities in the UK. 

Along with Liverpool, Manchester attracted 68 foreign direct investment (FDI) projects in 2017, beating other global cities like Toronto and Barcelona. Specialisms in cyber security, FinTech and advanced materials helped the city bring the largest number of investments into the UK, second to London.

The report echoes the EY Attractiveness Survey UK 2017/18 which ranked Manchester as the most successful city to attract FDI outside London. Manchester also retained its place as the UK’s Most Liveable City in the Economist Intelligence Unit’s 2018 Global Liveability Ranking.

Manchester is the fastest-growing city for house prices in the UK, followed by Liverpool. Source: Hometrack, June 2018

The UK is currently placed fifth in the list of the worlds’ most influential FDI destinations. Britain was also ranked fifth for FDI job creation, with 51,500 new jobs born out of these global investments. Manchester and Liverpool jointly created 7,000 jobs last year.

Tim Newns, Chief Executive of MIDAS, Manchester’s inward investment agency, said: “This report once again confirms Manchester as a globally significant business destination and, together with Liverpool, illustrates the potential of the Northern Powerhouse.

“Greater Manchester is ambitious, visionary and passionate about the future. Billions of pounds are being invested to create inspiring, connected business environments that support innovation and reflect future needs, and ensure that the region continues to be a draw for the world’s most innovative companies and biggest brands.

“Talent is one of the key attractors for global businesses and with student retention figures at an all-time high in Manchester, it is creating an even more compelling case for investment.”

In August, Booking.com, the world’s third largest e-commerce company announced a £100 million investment into a new global HQ in Manchester, with online health and beauty retailer The Hut Group (THG) also announcing plans to move into MediaCityUK.

This weekend, find out more about this amazing project in Manchester and how you can profit from it.

This weekend, learn how you can invest £75K & GET BACK £190K in 5 YEARS with the POWER OF LEVERAGE! Come for the EXCLUSIVE WORLD LAUNCH of an iconic new residential development in the Manchester city centre – THE CROWN On Manchester’s Skyline. Call +60162288691 to book your seats now!

By Ian Choong
Edited by Vivienne Pal

Sources:

  • https://www.manchestereveningnews.co.uk/business/business-news/manchester-foreign-direct-investment-ibm-15103754
  • http://www.businesscloud.co.uk/news/tech-giant-bookingcom-to-invest-100m-in-manchester
  • Featured image: Prolific North
 
 
 
 
 
 
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Billion Dollar Whale
 
 Categories: Reading and Research 
 
 
 
  
 
One billion dollars.
Few can truly grasp the magnitude of that sum of money. But we could try and give you a rough idea in property terms!
With $1 billion, you can get 4585 homes in Manchester at a cost of £166,000* per home. With a rental yield of 5.90% p.a.** and annual capital growth of 7.4% p.a.*, that $1 billion can get you total returns of £2 billion*** in 7.5 years!
*Hometrack, June 2018
**Private Finance
***Total value of asset + 7.4% capital growth + 5.90% annual rental yields over 7.5 years.
Now that’s a whale of an investment! Why just blow it all away when you can put it into a growth asset and double your investment!
Got $1 billion to spare and fancy blowing it on some property? Give us a shout! Or let us know in the comment box below what you would spend your money on! 
By Vivienne Pal
Sources
  • https://www.hometrack.com/uk/insight/uk-cities-house-price-index/june-2018-cities-index/
  • https://www.thisismoney.co.uk/money/buytolet/article-5315623/Where-invest-buy-let-2018.html
 
 
 
 
 
 
 
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Manchester Tops House Price Growth in UK
 
 Categories: Reading and Research 
 
 
 
  
 
Manchester recorded a 7.0% increase in house price growth compared to London’s dismal 0.4%.
Manchester is England’s top performing city for house price growth, the latest data from Hometrack shows, while London remains on a flatline.
The data comes from the property research firm’s UK Cities House Price index, which tracks housing data across 20 UK cities and regionally.
For house price growth over the last 12 months, Manchester obtained top spot at a cool 7.0% increase followed by Birmingham at 6.5% and Liverpool at 5.9%. 
Price growth in London showed no signs of recovery, staying at a stagnant 0.4%.
Across the UK as a whole, prices have gone up by 4.3% over the last 12 months.
Price Growth of UK Cities in last 12 months: Leading cities in the UK that outshine London.
Many cities in the Northwest have posted high capital gains over the average for the last 12 months. Yet, there is still much room for growth, as prices remain low, well under the national average. 
The average price in Manchester was at £163,200, Birmingham is at a slightly lower £159,800, and Liverpool, at £118,800.
Comparatively, the average price of a home in Britain is £217,400. 
Although price growth in London is stagnant, housing in the capital costs more than double the national average, at a whopping £491,200!
Average Prices in UK Cities: London prices are at stratospheric levels, making high yields and capital gains quite impossible.
Richard Donnell, Insight Director at Hometrack says that the London market is going through a period of price alignment, having posted some very large gains over the past 8 years.
“Over the last 12 months, average prices in London have grown by just under 1%. This is much lower than the annual average growth of 9% over the last 5 years. These averages mask a wide range of house price growth at a sub market level. Actually, house prices are falling across a third of London’s local authority areas.”
Homes in the capital have become unaffordable for many people after years of surging prices, while wage growth remains meagre and lenders apply tougher mortgage criteria. 
However, the price gap between regional cities and the capital is narrowing.
Hometrack expects the gap in prices between London and other UK cities to close further over the next two years. This follows a similar pattern from 2002 to 2005 when London house price growth was relatively weak compared with the rest of the country, after a period of surging prices from 1996 to 2000.
Richard says, “We expect house prices to keep rising across regional cities such as Birmingham, Manchester and Edinburgh over the next two to three years. During this time house price growth in London will remain flat, with annual price rises of approximately 0-2%. As a result, the gap between house prices in cities outside of the south-east and house prices in London will continue to contract.”
Price falls in London will reduce the gap between it and regional cities
Manchester and Birmingham are expected to be the first cities to move closer to London prices, with demand for housing likely to be boosted by strong job growth. They are forecast to return towards average prices being around half of those in the capital compared to a third today.
“The level of house price inflation seen in large regional cities during the last peak, between 2000 and 2003, gives a good indication of how much prices may rise this time around. If history is to repeat itself and these cities are to get back to where they were, then prices could increase by as much as 20-25%,” Richard adds.
This weekend, find out more about this amazing project in Manchester and how you can profit from it.
This weekend, learn how you can invest £75K & GET BACK £190K in 5 YEARS with the POWER OF LEVERAGE! Come for the EXCLUSIVE WORLD LAUNCH of an iconic new residential development in the Manchester city centre – THE CROWN On Manchester’s Skyline. Call +60162288691 to book your seats now!
By Ian Choong
Sources:
  • https://www.theguardian.com/money/2018/jun/29/london-house-price-growth-at-nine-year-low-amid-edinburgh-and-manchester-spurt
  • https://www.hometrack.com/uk/insight/uk-cities-house-price-index/may-2018-cities-index/
 
 
 
 
 
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How Improvements in Transport Affect Your UK Investment
 
 Categories: Reading and Research 
 
 
 
  
 
Birmingham is a fast developing city, supercharged by regeneration and transport improvements (Source: Paradise Birmingham)
 
Two-thirds of buyers still work in the capital, and transport links are what enable them to live away from London. Larger homes are cheaper to find away from the capital, and, with improvements to the public transport networks, many prefer the larger living space, despite having to take a longer commute to work.
Migration out of London is at its highest ever level. The number of Londoners in their 30s leaving the capital has risen by 27% over the past 5 years, according to the Office for National Statistics (ONS).
Unsurprisingly, the most popular destinations for these leavers are concentrated around London’s commuter belt. 
Savills data shows that 14% of all their new home buyers across the UK were moving from London in the last 3 years, with 39% of them upsizing to a larger property. Between 2015 and 2017, the average new build home bought by a Londoner was 14% larger than a home bought by someone moving from elsewhere. 
Two-thirds of buyers still work in the capital, and transport links are what enable them to live away from London. Larger homes are cheaper to find away from the capital, and many prefer the larger living space, despite having to take a longer commute to work.
Transport improvements trigger higher demand
Transport has a key role to play in the delivery of new homes. As people look to move to a new area, a transport hub can fuel residential demand and, consequently, house price growth.
Train stations that have seen the largest increase in passenger use over the last two years are those that have seen larger volumes of new homes delivered. Areas such as these have, on average, seen house price growth that is 5% higher than neighbouring areas over the past five years.
As people continue to move out of London, improvements to infrastructure can provide an opportunity for developers to take advantage of the demand for new homes in commuter locations.
Commuter belt hotspots
Over the past 2 years, stations that saw the largest increase in passenger use were those within a 19- to 39-minute journey from a central London terminal. These are also the markets which have seen the largest increase in secondhand sale prices over the past five years – an average of 44% against the average for England and Wales of 20%.
Some of the highest increases in passenger use were in lower-value locations in the Home Counties such as Ebbsfleet, Apsley and Luton – areas on the cusp of higher-value ones. As affordability in the capital becomes more stretched, we expect these up-and-coming locations to remain popular with London movers, particularly if they are located on new or improving lines such as HS1 or the Midland mainline.
Train stations with highest increase of passengers over the past 2 years likely have affected house price growth in their areas (Source: Savills Research)
Beyond the commuter belt
Hotspots beyond traditional London commuter locations have already benefited from infrastructure improvements. 
The upgrade of Birmingham New Street, for example, has seen a 33% increase in passenger use since 2015, while house prices within 2km of the station have increased by 44% over the past five years.
Ahead of High Speed Rail 2 (HS2) at Curzon Street station, there has been significant investment in the regeneration of Birmingham city centre. This has fuelled commercial investment from companies such as Deutsche Bank and HSBC, and has helped to support residential demand and subsequent house price growth.
This is also rippling out into markets surrounding Birmingham. Rugby, Coventry and Long Buckby have all seen an increase in commuters of between 18% and 19% while house prices have increased by 35%, 46% and 67% respectively over the past five years.
New residential developments in the city are attractive to investors as a result. One example is Arden Gate which is located in the prime city central area. These luxury apartments are only a few minutes away from the central New Street train station, close to entertainment, shopping centres, and major businesses, including the HSBC HQ. Currently the developer is offering a 6% rental assurance for the first 12 months. Prices start from £182,950, with up to 70% financing available.
Up in the Northern Powerhouse, Transport for the North (TfN) which became England’s first sub-national transport body in April revealed a £70bn 30-year plan that includes the Northern Powerhouse Rail. Under the plan, new lines and upgraded existing lines will be linked to the HS2, increasing connectivity between the North’s largest cities and enhancing opportunities for both workers and investors alike. 
The ripple is taking effect for, as a direct consequence, Manchester’s Piccadilly station and its surrounding areas will be overhauled. This could be the start of a series of more overhauls across the Northern Powerhouse.
Outlook
The ripple effect of Londoners moving to the commuter belt is expected to gain momentum. Occupiers searching for more space are likely to bring London’s equity with them and will be targeting markets with the quickest links to the capital. These include established prime locations and up-and-coming areas which are more affordable than its surroundings.
This ripple effect will be expected to move beyond London’s commuter zone to markets in the Midlands and the North. House prices there have risen more in line with wages, and therefore remain more affordable. The most capacity for growth will likely be there over the next few years.
The strong local economy and infrastructure investment will remain catalysts for residential demand and house price growth. The £1.7 billion Transforming Cities Fund will provide funding for improved connectivity in areas such as Greater Manchester, Cambridgeshire, the West Midlands and Liverpool City Region.
What do you think about transport improvements driving house prices? Drop us a comment below. If you’re interested to take advantage of transport improvements in the pipeline, and invest in property in the UK regional cities, don’t hesitate to give us a call at 03-2162 2260, or email us at info@csiprop.com.
Article by Ian Choong
Sources:
  • https://www.savills.co.uk/research_articles/229130/228279-0
  • https://csiprop.com/uk-government-continues-focus-northern-powerhouse/
  • https://www.buyassociation.co.uk/2018/05/15/transport-for-the-north-will-unleash-new-opportunities-outside-london/
  • https://www.buyassociation.co.uk/2018/03/15/hs2-northern-powerhouse-rail-transform-manchester-piccadilly/
 
 
 
 
 
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Oscars 2018: The UK Proves Itself Again
 
 Categories: Reading and Research 
 
 
 
  
 
The 2018 Oscars was, in its own way, an homage to British history and talent, following the announcement of several British winners.
For as long as you and I have been alive, the UK has been a superpower. The expanding crosses of the Union Jack seem to be mirrored by Britain’s far-reaching hands of success into pretty much every industry: education, manufacturing, culture, fashion and more. And, if the 90th Academy Awards is anything to go by, then Britain’s film industry has surely demonstrated its triumph in the form of several golden statuettes.
The 2018 Oscars was, in its own way, an homage to British history and talent, following the announcement of several British winners. 
Dunkirk, Christopher Nolan’s depiction of the Dunkirk evacuation in World War II, managed to scoop three out of seven awards it was nominated for, which are Best Film Editing, Best Sound Editing and Best Sound Mixing. 
Following in Dunkirk’s success is Darkest Hour, a British war drama regarding Winston Churchill’s account of his early days as Prime Minister during World War II. For this, English actor Gary Oldman won Best Actor in a Leading Role for his portrayal of Winston Churchill while Kazuhiro Tsuji took the award for Best Makeup and Hairstyling.
Phantom Thread, a film set in the glamour of the 1950’s British fashion scene, most deservingly received Best Costume Design while The Silent Child, a British short film, took the award for Best Short Film (Live Action).
Oscars 2018 Proves UK is Home to Great Talent 
The Oscars this time around, most definitely proved the UK is home to many talented artists and a thriving film industry — Christopher Nolan, director of Dunkirk amongst many other famous movies, revealed in Total Film that he was adamant that all of the cast be British for Dunkirk, which, evidently, worked out well in terms of film success and historical accuracy. Nolan himself was raised in Westminster, UK, crediting his own trip across the channel to Dunkirk and his knowledge of Britain’s rich history, for inspiring him to make the film. 
Inspiration for the Darkest Hour came quite the same way, with the film’s equally decorated English director, Joe Wright being enamoured by Winston Churchill, and his interesting leadership qualities. 
It goes without saying how important the filming locations were in bringing historical movies such as the Darkest Hour to life. Manchester, the second largest city in the UK, was featured heavily in the movie. Permission to film in Manchester Town Hall and John Rylands Library in the University of Manchester, which doubled for a World War II-era House of Parliament, provided the crew of the Darkest Hour the perfect solution to their location hunt. 
Location manager Joe Cairns, explains, “We were met with such a warm welcome and the ease of filming at both busy city centre locations made the production’s experience in Manchester an extremely positive one. To now have Screen Manchester, which is the dedicated film office for the City of Manchester, further develops the city’s strong commitment to supporting film & TV production and the clear understanding of the huge investment it can add to the local economy.”
Screen Manchester was recently established as the city’s official film office, to support location filming in the area. Along with Manchester’s brand new film office are many other film offices and studios spread out across the country, proving that the UK has a good eye for spotting industries that provide great returns.
Not surprisingly, Manchester is home to the fastest-growing creative industry in the UK outside London, with some 48,515 people working in industries such as design, film and TV, publishing and architecture. Many defining achievements in science and technology come from Manchester, too. It is where the world’s first IVF baby was conceived, where they split the atom and isolated graphene.
Manchester’s staggering development makes it an attractive place for investors looking for the next big thing to invest in. With all this economic progress happening in Manchester (and most of the UK, as proven with a little more research) one would be regretful not to take a look at the UK’s booming property market following high demand for more housing spaces. Should your interests extend beyond the Oscars and into real estate, please feel free to contact us. We can definitely help you with that!
What did you think about the Oscars 2018? Do you agree that the UK has much talent? Share with us your thoughts in the comment box below!
By Nimue Wafiya

 Source:
bcnews.go.com/Entertainment/director-christopher-nolan-tells-inspired-dunkirk/story?id=48772403
http://collider.com/bruno-delbonnel-interview-darkest-hour/
https://www.prolificnorth.co.uk/news/broadcasting/2018/01/manchester-looms-large-darkest-hour
http://www.screenmanchester.com/
https://www.manchestereveningnews.co.uk/business/business-news/manchester-fastest-growing-creative-industry-14295016
csiprop.com/manchester-original-modern-city
csiprop.com/uk-property-outlook-2018
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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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For Manchester United Fans: #ILOVEUNITED comes to Malaysia
 
 Categories: Reading and Research 
 
 
 
  
 
Manchester United fans in for a treat with first ever #ILOVEUNITED fan party in Malaysia
Do you consider yourself a Red Devil? Well-versed in the interesting origin of the glorious Manchester United Football Club?
If you’ve said yes to either or both, you’re in for quite the treat:
 
For the first time ever, Manchester United is bringing its #ILOVEUNITED fan party to Kuala Lumpur on 10th March, 2018! To be held at Berjaya Times Square, Kuala Lumpur, the event will feature a live match screening of Manchester United’s highly anticipated home match against Liverpool and a chance to win a once-in-a-lifetime VIP trip to Old Trafford!
While the exultation of experiencing the match with fellow supporters might be enough to satiate fans, this event is offering much, much more.
Star Trek’s Captain Kirk: looking intrigued. Image from Know Your Memes dot com
Manchester United Ambassadors Dwight Yorke and Denis Irwin, together with club legend David May will be landing in Malaysia to meet fans and give pre-match views and half time analysis of the game! 
The #ILOVEUNITED event will also feature an interactive, online hub linking fans around the globe, with the opportunity to upload and post their own videos and pictures expressing their support for the team.
There is still more to expect! Live entertainment, giveaways and competitions will be ongoing throughout the event to keep the crowd active and engaged.
Eager to grab a ticket? All you have to do to apply for free tickets is visit www.manutd.com/iloveunited latest by the 4th March, 2018. Applications will be entered into a ballot and successful applicants will be notified by email no later than the 6th March, 2018.
Fans who are Official Manchester United members simply need to submit their membership number during the application process to be guaranteed a ticket.
If  you find that your interest extends beyond football to include Manchester’s promising property market, you can contact us for assistance! 
Oh, and if you haven’t already seen it, check out our article regarding Robbie Fowler and his decision to tour London tour in an effort to promote UK property investment to his fellow Brits here: csiprop.com/fowler-strikes-again-in-the-uk-property-market/!
P.S: Did you know that a number of EPL footballers have also invested in the UK property market? Read our article!
Article by Nimue Wafiya
Source:
#ILOVEUNITED is heading to Malaysia
The Day Manchester United was Saved by the Dog – A Tale From Early Years 
Fowler Strikes Again in the UK Property Market 
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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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Manchester & UK Regional Cities Lead Property Price Growth
 
 Categories: Reading and Research 
 
 
 
  
 
Image credit: http://dailym.ai/2BG4GFG
The latest census on UK property price growth has been released by HM Land Registry and Office for National Statistics (ONS), showing tht UK regional cities top property price growth in the country.
It also shows a promising annual growth rate of 5.2% recorded in the month of December, 2017 — a 0.2% increase from the previous month. The average house price in the UK stood at £226,756 in December, approximately £12,000 higher than in December, 2016 and £1,000 higher than last month. 
Regionally, the Southwest, which includes the cities of Bristol, Plymouth and Salisbury, earned the best track record, with the highest annual growth rate of 7.5% approaching the month of December.
The Southwest is followed by the West Midlands, which includes the city of Birmingham, with an  annual growth of 6.3%. Meanwhile, the East Midlands also recorded similar property price growth levels.  
London experienced the lowest annual property price growth, at 2.5% — on the bright side, those looking to purchase homes in London for possible stay can enjoy affordable prices while they last.
Rising rates in the South West, East Midland and West Midland show positive outlooks for areas outside London (Img source: http://bit.ly/2C045Ql)
James Cameron, director of estate agency Vesper Homes, said landlords are selling up in London and looking for buy-to-let opportunities elsewhere, which is benefiting first-time buyers in the capital. 
“Landlords are therefore selling up so they can invest outside of London or trade up to a larger property which frees up the smaller ones for first-time buyers,” he said. 
Property price growth: what this means for investors
What can be derived from recent trends seen in areas outside England’s capital is that the regional market holds the greatest appeal to the savvy investor. 
Savills identifies Birmingham, Manchester and the overall Northwest as the top places for buy-to-let investors, with the highest comparative returns. They predict a 4.5% average annual return for Birmingham and Manchester, and 4.1% for the Northwest. Mortgage brokers Private Finance place Liverpool at the top for nett rental yields in 2017 once mortgage costs are taken into account, at a whopping 8%.
Price change by local authority for the year till November 2017 (Source: Gov.uk)
While house prices in London remain the highest, the affordability and potential of regions outside London make investing in property outside the capital so much more attractive.
Addressing the elephant in the room
While Brexit continues to amass uncertainty within the property market, the house price growth indicates resilience in the housing market supported by the undersupply of housing in the UK.
Recent news regarding property in London illustrates the housing crisis. Micro-flats, housing units that can take up as little as 31 square meters in total, show the extent to which the UK must reach to meet the demands of a growing population. 
Just this month, the Mayor of Watford, Dorothy Thornhill, voiced her concern after the council learned it might have to double the amount of houses it must build as part of the latest attempt by the Government to tackle the nationwide housing crisis.
In Birmingham, last month, a plot of land previously caught in a “store-wars” battle between a shopping centre owner and supermarket giant Sainsbury, has finally been claimed by Seven Capital, a property investment company in the UK. The plot of land, between Sutton road and Orphanage road, is being converted into new apartments, undoubtedly a consequence of critical undersupply of houses currently affecting the city. 
Late last year, it was reported that the dire undersupply of houses in Brighton and Hove would scarcely be supported by the Prime Minister of England’s solution to deliver 5,000 houses a year throughout the UK, which would bring only around a dozen new houses to the previously mentioned areas. This leaves room for private developers to establish themselves where demand is exceptionally high.
The housing market in the UK is still growing and you can be a part of it – should the positive outlook on the property market in the UK pique your interest, do contact us to get involved.
Article 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 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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Manchester, The Original Modern City
 
 Categories: Reading and Research 
 
 
 
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 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
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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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London Falling
 
 Categories: Reading and Research 
 
 
 
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
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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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