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Are British Accents A Reflection of the UK Housing Market?

How do the Brits rate the many different accents in the British Isles and are they a reflection of the British property market?

There is a sort of ‘pecking order’ to the accents found in the British Isles. But here’s the question: is this pecking order a reflection of the performance of the property market in the different cities in the UK?

There is a common fallacy that surrounds the British accent, the misconception being that there’s only one. Well, there isn’t.

If you were to do a quick analysis of English dialects, you will find that there are roughly as many accents in the British Isles as there are in the whole of North America – including Canada, Bermuda and Native American dialects. Drill deeper and you will find that there is one dialect per every 1.3 million people in the British Isles (vs. a rather unimpressive one in 10m people in North America)!

This is a fact known to few, with many not even realising the huge variety in British accents, let alone the hilariously painful hierarchy associated with it.

Thanks to YouGov, an international Internet-based market research and data analytics firm headquartered in the UK, the mystery to this social pecking order has been  has unravelled.

There is a hierarchy associated with all the accents in the British Isles. Which do you prefer? Image credit: YouGov

YouGov conducted a research based on the public’s ratings of the attractiveness of the 12 main British accents in the UK and found that the public has deemed the Birmingham ‘Brummie’ accent the most unattractive. A study by psychologists from Bath Spa University expressed the reason behind this prejudice: apparently, people with Brummie accents sound like crooks, and are viewed as less intelligent and less imaginative.  Of course, these stereotypes are not rooted in science, and should not be treated as a true measure of intelligence.

Interestingly, the Liverpool ‘Scouse’ and Manchester ‘Mancunian’ accents were the second and third worst, respectively.  A good thing, then, that accents are neutralised in song, for Liverpool-born Paul McCartney and John Lennon of The Beatles, along with Mancunian Liam Gallagher of English rock band Oasis, might have had a harder time topping the charts!

 

So, Which British Accent Won the Linguistic Battle of Appeal?

Taking the top spot in YouGov’s research is the Southern Irish accent. Those keeping up with news on entertainment may have come across the likes of Saoirse Ronan and Cillian Murphy, whose speeches and interviews alone may well prove the report true.

Quite surprisingly, though, Received Pronunciation (RP), the very accent of the Qqueen herself, came in second place with a considerable 11-point difference from the first spot. RP has quite the prestigious reputation with only 2% of the British population speaking it, all of whom are of high social standing.

Waltzing into third place is the Welsh accent. A separate study by The Language Gallery revealed that people who speak with the Welsh twang were perceived as sounding happier than those with other English accents. Robert Downey Jr. has taken up the challenge of learning this jolly accent for his upcoming film, and Welsh fans are ecstatic about it.  

 

All British Accents Retain Their Glory Outside the UK

In the end, regardless of what the Brits themselves think, it appears that the rest of the world continues to marvel at the sophistication of all British accents.

Lyndsey Reid, a Brummie-speaking writer at Business Insider in the US recounts that there really isn’t a “bad” British accent in America given the numerous compliments she has received since landing in New York.

Her accent, she says, is a novelty that sets her apart in a positive way. Since her move to America, she has been asked to do presentations at events and provide an insight into the British English language. And, it is her voice that has been used in voice-overs for internal corporate videos.

“You guys think I sound like Emma Watson,” says the wordsmith, “and even though that couldn’t be further from the truth, I’ll take it.” 

 

British Accents Are Not A Reflection of the Housing Market 

While their accents don’t quite meet the mark (at least among the Brits), Birmingham, Liverpool and Manchester have something else going on for them — their property market.

Those keeping up with the news must be aware of the regional city rise, whereby house prices in cities outside London are experiencing greater growth than in the capital. Shrewd investors would know that these three cities, while home to the UK’s bottom three accents, are actually subject to  have some of the best house price growth rates in the UK.

And, as such, we conclude that the scales have tipped in favor of the flourishing cities of Birmingham, Liverpool and Manchester.

At CSI Prop, while we cannot offer lessons on the British accent, we can help you invest in some of the best properties the UK has to offer! Contact us at +603 2162 2260 to invest in properties Birmingham, Liverpool and Manchester.

By Nimue Wafiya

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UK Property Investment Beyond Brexit

In less than a year, the UK  will officially exit the EU. Here is an overview of the Brexit effect on the UK property market.

Recently, popular actor Sir Patrick Stewart joined Members of Parliament and business leaders in London for the launch of a campaign called The People’s Vote. The campaign calls for a second Brexit vote, and drew some 1,200 people, including representatives from all of Britain’s major parties.

The actor, who played Professor X in X-Men, and Captain Jean-Luc Picard in Star Trek: The Next Generation, had earlier said that both his iconic X-Men and Star Trek characters would have backed Remain. This provoked a retort from Boris Johnson, the British Foreign Secretary. Mr Johnson drew upon Star Trek’s famous line, saying that Brexit will enable the UK to “boldly go” to areas it has neglected in recent years as it seeks trade deals.

On 29 March 2019, the UK will cease to be part of the EU as per the terms of Article 50. Taking into consideration the time needed for ratification by both the EU and UK, negotiations need to be complete by the end of 2018, or both parties risk a ‘cliff edge’ scenario where ties are suddenly severed with no arrangement as to how to move forward outside World Trade Organization (WTO) rules.

The UK has long been a global superpower with London as the world’s financial, education and cultural centre — even before it became a member of the EU.

Brexit and the property landscape

The UK has long been a global superpower with London as the world’s financial, education and cultural centre, even before it became a member of the EU.

Our position has always been that there will, undeniably, be risks and opportunities. And while uncertainty is bound to rock the housing and economic market, we are positive that the UK will adapt to changes caused by Brexit. The slowdown in the housing market is likely a short-term one as the lack of housing supply in the UK will not change overnight, thus there will continue to be opportunities for property investors.

CBRE, in its Brexit Guide for Real Estate Decision Makers released last month (March 2018), echoes the sentiment and concludes that Brexit is not likely to have a significant impact on the property market.

The British Prime Minister has said on many occasions that she would rather that no deal be made (in negotiations with the EU), than a bad one. CBRE calculates the probability of a no-deal Brexit scenario at around 25%. A no-deal scenario would mean the UK leaving on WTO rules, rather than continued preferential market access. Such an outcome could be damaging for the short-term confidence in the UK economy, especially if the UK is not well prepared.

What is significant for the real estate market are the current negotiations on future trade and migration arrangements.

Migration controls are likely to be tighter, but it is not clear yet to what extent the controls will be. In the 2017 General Election, the Government restated its target to cut nett migration to below 100,000 people per year. This will be challenging given that nett migration into the UK is currently more than double that amount, and added on to the fact that the Government wants to allow highly-skilled EU immigrants to continue to come to the UK.

The reduction in immigrants could very well cause labour shortages and inflation. A shortage in labour affecting the construction sector could mean the slowing down of on-going developments, inevitably causing real estate demand to rise. This was implicitly recognized in the Government’s November 2017 Budget, in which £34 mil was allocated to retraining the unemployed to work in this sector.

However, any attempt to tighten migration controls will not be made until 2021 at the earliest, given that the Government has made a commitment to import the entire body of EU law into domestic legislation, which will take a while.

This will also mean that regulatory legislation for the property market is likely to stay stagnant until after 2021 as well. Tax change is not likely to differ either. Most taxes have been nationally-determined, with the exception of VAT and customs duties where the EU has specific influence. Thus Brexit will not induce much change in that regard.

Residential Property

The residential property market is on the road to recovery, going up by 34% from the post-crisis sales rate, which was about 1.2 million sales in 2017.

First-time buyers have increased from the long-term average of 41% to 48%. This can possibly be attributed to the Government’s Help to Buy program, which provides more accessible financing for those looking to purchase residential property. Movers are hindered by a lack of stock coming onto the market, and this trend is most pronounced in London.

CBRE predicts that house price growth will slow to around 1.5% in 2018, but rally in 2019 and reach 17.1% in the next five years.

CBRE house price and rental forecast for 2018-2021

Commercial Student Accommodation

Commercial student accommodation is set to be a growth area, with or without a Brexit deal. Research from Cushman & Wakefield showed that the supply of studio rooms has more than doubled since 2014. In 2017 a record-breaking 30,000 bed spaces were provided.

However, supply is still not keeping pace with the growth of students in recent years. CBRE’s research shows that there still is much headroom for further provision of student accommodation in many cities in the UK.

CBRE’s valuation index of 65,000 bed spaces reached double-digits, with total returns at 11.9% in the 12 months to Sept 2017. This significantly outperformed the Investment Property Database (IPD) All Property Index at 9.5%, which provides an indication of investment performance for the entire real estate market as a whole.

Nett rental growth of the index reached 4.1%, which was pushing double the IPD ERV (Estimated Rental Value) growth, at 2.2%.

Future demand for student property is likely to increase as latest UCAS figures show that student applications have gone up. The number of applications by EU and international students for university places in the UK increased to over 100,000 for the first time in 2018, a rise of almost 8% compared to last year. From this it can be seen that Brexit is irrelevant to students looking to further their studies, and the UK remains a popular place due to the reputation it has for quality tertiary education.

David Feeney, advisory associate at Cushman & Wakefield explains, “The UK is still a global education hub, attracting the best students from around the world. Even with Britain’s exit from the EU progressing, the relatively weak pound has attracted additional applications from non-EU students, with their numbers rising 5% over the last year. It is a key market, as 23% of the UK student population is now from overseas.”

Healthcare

Healthcare real estate investment hit record prices in 2017, reaching double (£1.4bn) that of the whole of 2016 (£720m) in just January to October. A majority of investments went into commercial care homes, far surpassing the rest of the healthcare sector.

Healthcare Investment Volumes for 2016 and 2017 (CBRE)

The large disparity of care home supply and demand has driven investments in this area. The UK’s population is ageing rapidly and existing facilities are already unable to cater to the current demand. There is also a lack of support for sufferers of dementia, a demographic which is also increasing rapidly.

We can see more real estate investment trusts (REITs) starting to focus on this in 2018 and beyond. AXA’s acquisition of Retirement Villages and L&G’s acquisition of Inspired Villages and Renaissance Villages were all purchases involving established operators with development pipelines.

Conclusion

The current uncertainty in the air continues to dampen confidence and growth in the UK’s economy. Currency-induced inflation has not yet fully dissipated, slowing consumer spending. Yet, as we have said previously, the weak pound has attracted a good number of international real estate investors to the UK, increasing demand for property. The weak sterling provides investors with a great opportunity to get into the UK property market right now, and cash in later when the market regains its footing.

Certain sectors like commercial student property and commercial elderly care homes are Brexit-proof due to the high demand and low supply, regardless of whether the UK does or does not exit the EU with a deal. These sectors also have the advantage of being accessible to the individual investor and not just REITs, with their availability to be purchased in affordable units.

Article by Ian Choong

  • http://fortune.com/2018/04/16/patrick-stewart-brexit-second-peoples-vote/
  • http://www.irishnews.com/news/worldnews/2018/04/16/news/boris-johnson-draw-upon-star-trek-catch-phrase-to-defend-brexit-1305065/
  • https://www.ft.com/content/d0e520be-cf6b-11e7-b781-794ce08b24dc
  • http://valuedinsights.cbre.co.uk/uk-student-accommodation-storylines-applications-affordability-and-appetite-from-investors/
  • CBRE Brexit Guide for Real Estate Decision Makers
  • https://csiprop.com/brexit-uk-property-outlook/
  • https://csiprop.com/international-applications-to-uk-universities-hit-record-high/
  • https://csiprop.com/press-release-silver-lining-behind-brexit-for-malaysian-investors/
  • Feature image: offshorelivingletter.com

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

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

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

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UK’s Younger Generation Opt to Rent As Over-50s Dominate Property Market

The latest data from Savills looking at UK homeownership has revealed that the amount of the nation’s property wealth held by the older generation is on the rise, while youngsters are increasingly less likely to own a home.

It looks like the odds are stacked against UK’s younger population. Many are leaning towards alternative ownership schemes, and in most cases, are opting to abandon the idea of owning a house entirely, in favor of renting.

The latest data from Savills on UK homeownership revealed that the wealth generated from the nation’s property market and held by the older generation, is on the rise. Meanwhile, what seems to be increasing for the UK’s younger generation is how unlikely they are to own property. Recent statistics from the Institute for Fiscal Studies show that the 25 – 34-year-old age group are around half as likely to own a property now than they were 20 years ago.

A whopping 75% of housing wealth in Britain is held by the over-50s, with a meagre 6% belonging to the under-35s. Zooming in on more specific age groups, the over-65s currently dominate the housing market, holding 43% of the country’s real estate wealth.

The discrepancy in equity between varying age-groups is summarised below:

The latest data from Savills looking at UK homeownership has revealed that the amount of the nation’s property wealth held by the older generation is on the rise, while youngsters are increasingly less likely to own a home.

This illustrates the thinning group of homeowners in Britain’s younger generation.

A deeper analysis reveals that homeowners have piled up equity by living longer, paying off their mortgages and watching as prices grew steadily in the final decades of the last century. While the latter has proven to greatly benefit the older generation, it has become quite the game changer for young, first-time home buyers.

First-time Home Buyers: The Discrepancy Between Average Income & Deposit

First-time home buyers are finding that complete homeownership is moving further out of reach as average annual income currently struggles to keep up with skyrocketing house prices. House prices are now 5.2 times higher than the average income, while in London, it’s a staggering 14 times higher!

In most regions, it takes the average first-time buyer about eight years to save for the deposit needed to buy a home. This rises to nine years in the southeast and 11 years in London. The typical deposit required to purchase a one-bedroom or studio apartment in London is £77,407, and £112,555 for a three-bedroom home. Meanwhile, the median income of a first-time buyer in London averages at £66,111. The stark reality is, many are unable to save such a sum and over a third reported that a proportion of their savings came from a gift or loan from family or friends.

UK’s Younger Generation Look Towards Renting and Partial Homeownership

UK’s younger population is currently looking towards alternative ownership schemes, and in most cases, opting to abandon the idea of owning a house entirely, in favor of renting.

The alternative scheme referred to is shared ownership, whereby buyers have the opportunity to purchase a percentage share of a property between 25% and 75% of the home’s full market value, paying a subsidised rent on the remaining share. Buyers can then choose to purchase additional shares as and when they can afford to, known as staircasing, allowing them to ultimately own their home outright.

Renting, on the other hand,  has been gaining momentum, with a considerable number of people turning towards it by choice. A research conducted by AXA revealed that less than 50% of its research participants are renting because they cannot afford to buy their own homes. The research also revealed that many enjoy the freedom of not being tied down by a hefty mortgage!

Conclusion: Renting is the Way to Go 

While UK’s older generation is predicted to continue benefiting from house price growth, the future is also welcoming a new wave of young renters. More people are choosing renting as a lifestyle option, particularly young professionals who enjoy the flexibility of renting, whilst being mortgage-free.

Jamie, a Business Manager for a Health GP Company in Northumberland, has a positive viewpoint of the evolving property market in the UK: “I have no issues with (renting). There is, to a degree, temporised value; you can often live in a nicer area, nicer street etc. for a cheaper monthly payment than a mortgage payment. Some see renting as ‘throwing money down the drain’, but I see it differently. Renting allows you to become, in some odd regard, a more static member of the travelling community,” he says.

Britain seems to be transforming into a nation of renters, which only adds to the appeal of property investment. For more information on this, click the following link: https://csiprop.com/britain-a-nation-of-renters/. If you are interested in investing in UK property, do contact us!

By Nimue Wafiya

Sources:


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

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

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

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UK Millionaires Say Wealth Starts with Property

UK Millionaire Gill Fielding on her wealth: “My wealth has come gradually and organically — starting with property. 

“The quickest and most reliable way to financial freedom is through investing in property, which we see time and time again through the results that our property-investing students achieve.” — Gill Fielding, UK millionaire & wealth management guru

How to be a millionaire: Top 5 reasons why investing in UK property could be your best option

Meet Gill Fielding, expert at all things UK property and founder of Fielding Financial, a UK-based company that specialises in providing financial planning, wealth management and mortgage solutions — did we forget to mention her millionaire status?

Fielding provides the following summary of her well-earned affluence:  “My wealth has come gradually and organically – starting with property.”

The qualified chartered accountant co-founded Fielding Financial on the basis of a personal mission: to educate the nation in managing and improving their own financial position. The company strongly believes that the quickest and most reliable method to attain this is through property investment, especially in the UK, where Fielding herself has invested in multiple projects. Take a peek at UK’s property outlook for 2018 and see why the property market there will continue to prosper and fetch great yields well into the future.

It goes without saying that a great number of investors have also acquired wealth through the same means as Fielding; a closer look at various types of investments shows that the odds truly are in your favor when investing in property (in the right places, of course). Oh, and in case you didn’t know, the three best buy-to-let hotspots in the UK that are set to offer the most competitive returns in 2018 are Manchester, Liverpool and Gateshead — something we have said so over and over in the past. 

Fielding Financial: Why Property Investment is the Best Option to Supplement Your Income

Fielding Financial has listed 5 key reasons why they believe property is the safest place to put your money (and they are very convincing, to say the least):

1. Investing in property puts you in the driver’s seat, while others do the work

Even though you may subcontract the management of the property to others, you’re in charge of the process and get to decide how and when things are done.

2. Residual income earned through rent yields higher returns than other investments

As a property investor, you’ll earn more money through rental income than if your money was in a high-interest bank account.

3. Anyone can become a property investor, even without personal start-up capital

The beauty of property-investing is that anyone can do it, even with no start-up capital.  Experienced agencies can teach you how to get started, even if you don’t have a deposit.

4. Fantastic capital gains

Properties are always in demand because there is a huge undersupply of homes in the UK. This means that even when there is a dip in the market, property prices often quickly bounce back up.

5. It allows you to leave a wealth-generating asset to your children

Due to the high demand for rental homes in the UK, a property portfolio can give your children (and future generations) a guaranteed income that a pile of money can’t provide them.

Property investment saved Rob Moore from debt and made him a millionaire. Image from BT

How to Invest in Property Successfully According to Rob Moore

Fielding’s fellow Brit and property millionaire, Rob Moore shares a common goal with her: to help bring to light the immense potential of the property market.

Moore’s story is a compelling one. Investing in UK property had not only saved him from a £50,000 debt; it generated enough income to transform him into a major property millionaire.  And it all started when a gallery owner urged him to attend a property networking event, insisting that most people on the rich list are in property.

True enough, Moore now stands among the wealthy, with many people looking up to him for financial guidance. Here are some of his tips for success, serving as a guide for beginners and a reminder for experts.

1. Have a clear financial plan and money bucketing systems

Decide what percentage of your income you will live off, save and never touch, then invest. After your income increases, change your plan accordingly; the challenging part, of course, is to never break these rules.

2. It is never too late to start but always too late to wait

Get perfect later, start investing and learning now!

3. Continually invest in yourself

Listen to podcasts, read books, take up courses and consult experts  — the more you learn, the more you earn!

These are sound tips, and the last point is particularly noteworthy: knowledge and research are key to successful investments! If you are interested in learning more about these millionaires’ takes on property investment, here are links to their latest books on the subject:

Gill Fielding – https://www.fieldingfinancial.com/landing-pages/property-puzzle-book-newbook/

Rob Moore – http://unlimited-success.co.uk/progressive-multiple-streams-of-property-income/

Ready and looking to invest in your first (or second or nth) property overseas? We’re here to help you invest (and possibly become a millionaire if you aren’t already). We have fabulous portfolio of Australian and UK residential and commercial property to choose from. Call us!  


Sources:


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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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

Sources:


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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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