With Brexit, a Cabinet reshuffle and COVID-19 in the mix, the UK has gone through a seismic series of unfortunate events that would make Lemony Snickett proud. We take a quick look at how the UK property market has performed based on latest released figures and the market outlook in the near term.
Manchester remains the No.1 UK city on the Economist Intelligence Unit’s annual Global Liveability Survey for the 9th consecutive year, trumping London and underlining a continued demand by people to live and work there.
Manchester has once again clinched this year’s No. 1 spot of Most Liveable City in the UK, for its ninth year running.
The Economist Intelligence Unit’s annual Global Liveability Survey rated 140 of the world’s largest cities based on factors such as education, social stability, education, infrastructure and access to healthcare.
The survey paints a picture of the appeal and desirability of Manchester as a place to live and work.
The focus of those looking at UK Property Investment: one of England’s rising stars, Manchester is undergoing huge economic growth and transformation, drawing young talents and businesses into its arms, and spurring an ever-increasing demand for housing in the city.
On behalf of the developer, we provide you with the latest images and information as of January 2019 from The Residence construction site in Manchester, a UK property investment opportunity. Kindly click on the image below to access and flip through the update.
The Residence is only a few minutes’ walk from Manchester City Centre. It sits at the doorstep of Spinningfields (The Canary Wharf of the North), Manchester’s main shopping and commercial district and Deansgate, the financial district of the city. The Residence occupies a prominent position within the stunning new £400 million Greengate Masterplan Project and, upon completion, will be one of the tallest residential buildings in the city, making it highly desirable for tenants. The regeneration of Greengate is expected to unlock £400 million of investment over the next 15 years.
CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential 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.
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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.
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:
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.
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, 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:
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
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.
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!
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.”
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, 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: