Experience Invest celebrates its 15th year

Experience Invest celebrates its 15th year

Posted Posted in Experience Invest

As one year draws to a close and a new one dawns, Experience Invest will be ready to celebrate 2019 as the 15th anniversary of the founding of our company. It has certainly been an interesting time in UK property, with the market witnessing a number of major economic developments and challenges since 2004, but showing the resilience to plough on through even the strongest headwinds. An eventful 15 years Undoubtedly the biggest event of the past 15 years – not only for the property market but the entire UK economy – was the 2008 financial crisis, which triggered years of economic adversity and austerity. Like all industry sectors and components of the economy, property and the housing market inevitably felt the effects of the downturn. Following years of steady price growth – with consistent double-digit increases recorded between 2002 and 2004 – average house prices plummeted between the second quarter of 2008 and Q3 2009, according to Nationwide. Over the past five years, however, price growth trends have stayed consistently in positive territory, even in the years of uncertainty following the Brexit referendum. What this means is that property investors who were able to get into the market in the wake of the financial crisis, when prices were low, have since benefited from years of steady capital growth. Buy-to-let investors have also felt the positive effects of the latest trends. The buy-to-let property market exploded in the 21st century, with the number of private landlords soaring from tens of thousands in the mid-1990s to almost two million by 2014, according to figures from Paragon, a specialist mortgage lender. The buy-to-let market has faced some challenges of its own in recent years, such as the government’s reduction of tax relief on mortgage costs. But it has also benefited from major […]

New Guide available through Experience Invest

Ease of exit makes property the top choice for UK investors

Posted Posted in Experience Invest

New research from Experience Invest has revealed that one fifth of UK investors do not carefully consider their potential exit strategies when entering an investment opportunity. In June 2019, Experience Invest surveyed over 800 UK-based investors about how they plan and execute exit strategies and how much does the exit strategy influence their decision to invest. The research – which was conducted by an independent research partner – asked 831 respondents who all had investments ranging from £10,000 to £10 million in total value. The appeal of real estate Property was the most common asset class among the investors surveyed, with 53% of those surveyed owning one type of real estate investment. Stocks and shares were the second most popular choice, with 48% of respondents holding this type of investment. Following the top two, a significant drop to just 12% of people surveyed had invested in foreign exchange/currency, 11% had equity in private companies and 10% had invested in art. In terms of exit strategy, 62% of respondents cited property as an attractive opportunity because of the ease of liquidation. What assets do they own? All Property 53% Stocks/shares 48% Foreign exchange/currencies 12% Art 11% Debt investments 9% Classic cars/motorbikes/boats/yachts 7% Cryptocurrencies 6% Commodities 5% Other 7% Source: Exiting investments: How are UK investors planning and executing exit strategies? Exiting a property investment Experience Invest’s new report – Exiting investments: How are UK investors planning and executing exit strategies? – highlights the importance of a flexible or clear exit strategy when investing. Overall, 25% of those surveyed are currently unable to exit their existing investments however, when it came to property, this figure dropped to just 18%. Unsurprisingly, capital growth is the most important factor for 85% of property investors when planning an exit strategy. While 73% also revealed that […]

One Wolstenholme Square completion

Completion of One Wolstenholme Square development in Liverpool

Posted Posted in Experience Invest

For property investors looking for a route into the UK market, there are few locations more appealing than Liverpool, a vibrant, thriving city where house prices are relatively low and demand for high-quality rental accommodation is strong. The supply of housing in this attractive destination will soon be boosted by the arrival of One Wolstenholme Square, a collection of buy-to-let apartments in the city centre. Completion of One Wolstenholme Square As we move into the summer months, Experience Invest is pleased to announce that Block E – the final stage of the build – completed on time in the second quarter of 2019. Now all the work has been done, there is a total of 469 units on offer at One Wolstenholme Square, ranging from studios to one-bedroom apartments. The property will offer a range of desirable features and benefits for tenants, putting owners in a good position to receive strong, regular returns on their investment. Luxury features and a great location Tenants searching for high-end housing in the centre of Liverpool will find plenty to interest them at One Wolstenholme Square, including walnut-finish flooring and doors throughout the apartments, kitchens with high-gloss white units and large-format porcelain tiles in the bathroom. Furthermore, the property is situated in one of the most desirable parts of the city centre, boasting a prestigious L1 postcode. Liverpool’s main attractions and university campuses are just a short walk away, with the Albert Dock waterfront area and the Liverpool One retail and entertainment complex within easy reach. A high-performing UK property investment For investors, the financial advantages of this off-plan development include assured annual rental returns and capital gains. According to the May 2019 Zoopla Zed-Index, the average price of an apartment in Liverpool has climbed by 19.37% over the last 5 years. Since the […]

Build to Rent sector attracts record levels of investment

Build to Rent sector attracts record levels of investment

Posted Posted in Buy-to-Let

According to CBRE’s UK Residential Investment report, around £1.4 billion was invested in Build to Rent property in the first quarter of the year. This positive start to 2019 has highlighted investor and end-user appetite for new-build property investments. Despite the on-going uncertainty surrounding Brexit, high levels of investment in the UK’s private rental sector is an encouraging sign for property investors. What’s more, CBRE’s data suggests the second quarter of the year will continue to attract high levels of investment, with almost £780 million of transactions already under offer going into Q2. Popularity of Build to Rent Over the last few years, the UK’s Build to Rent sector has provided investors and tenants with a positive solution amid continuing housing supply chain issues. Investors entering the Build to Rent sector benefit from the expertise of a housebuilder who has pinpointed a prime location with an undersupply of housing, and tenants benefit from the addition of much-needed new-build properties on the market. Highlighting the popularity of the investment in the private rental sector, Knight Frank’s Residential Report expects investment to reach £146 billion by 2025 – a substantial increase from £87.3 billion in 2019. The report, which has calculated its forecast on the combined investment into purpose-built student accommodation, residential Build to Rent and senior living rental sectors, cites shifts to the ‘housing policy landscape in the UK’ and investor appetite towards portfolio diversification as the driving force behind an increase in investment. “The growth of these sectors is mainly down to investor appetite for diversification, the granularity of occupiers that comes with individual units, demographic and tenure shifts and a housing policy landscape in the UK that is now embracing diversity of tenure. “While there are significant differences in market drivers for each sector, there are key synergies in […]

Four UK property investment hotspots set for success in 2019

Four UK property investment hotspots set for success in 2019

Posted Posted in Investment

UK property investors are somewhat spoiled for choice when it comes to selecting the right destination for their next purchase. The days of the market being driven and dominated by London are over, with regional locations now providing just as many – if not more – opportunities to secure profitable investments.   The capital continues to offer great potential, of course, but buyers who want access to the widest possible range of prospects should also be looking to regions such as the north-west and north-east, as well as London’s commuter belt.   Here are four particular locations worth considering in 2019…   Manchester   One of the cities at the forefront of northern England’s steady regeneration in recent years, Manchester offers a lot of potential for property investors seeking strong capital growth and reliable rental yields.   The LendInvest Buy-to-Let Index for November 2018 showed rental yields of 5.29 per cent in Manchester, while Hometrack’s latest UK Cities House Price Index revealed year-on-year price growth of 5.8 per cent.   According to research conducted by Experience Invest, 33 per cent of investors are thinking about buying in Manchester in 2019, putting the city just behind London (35 per cent).   Liverpool   Manchester’s north-western neighbour, Liverpool could be an even more attractive option for investors seeking healthy capital growth, with Hometrack data showing that house prices in the city rose by 6.3 per cent in the year to December 2018. Despite this, Liverpool had the lowest average price (£121,900) of any of the 20 cities surveyed, suggesting there are some bargains to be had.   A quarter (25 per cent) of investors surveyed by Experience Invest said they were considering a purchase in Liverpool this year, making it the third most attractive location for UK property investment.   One of […]

Brexit – what could it mean for UK property?

Posted Posted in Brexit

What could Brexit mean for the UK property industry? It’s a question that is playing on the minds of many investors and businesses at the moment, as Britain inches closer to exiting the European Union on March 29th, still without an official withdrawal agreement in place. Jerald Solis, Business Development and Acquisitions Director at Experience Invest, considered this issue in a recent article for Business Leader, providing some insights that could prove valuable for investors at this uncertain time. Property prices The British economy has faced its fair share of uncertainty since the EU referendum result was announced in June 2016, but house price growth has been fairly robust in most regions. Halifax figures showed that house prices increased by 1.3 per cent in 2018, while cities like Liverpool (6.3 per cent) and Manchester (5.8 per cent) continued to see large year-on-year price growth in December 2018, according to the Hometrack UK Cities House Price Index. One location that has experienced a significant downturn is London, suggesting that investors seeking capital growth could benefit from looking to other regions after Brexit. Striking a positive note on the current outlook for prices, Mr Solis wrote: “In light of recent trends, the UK property market looks in good shape to overcome the hurdles that lie ahead.” The pound One of the most significant economic trends that emerged in the wake of the Brexit vote was the steady decline in the value of the pound. While this is not welcome news for British travellers heading abroad or businesses buying foreign goods, it has stimulated interest in UK property from overseas. International investors seeking to make the most of their current spending power have taken a greater interest in British real estate. This helps to explain the recent upturn in prime property sales, with […]

Reasons to be cheerful about property investment after Brexit

Reasons to be cheerful about property investment after Brexit

Posted Posted in Buy-to-Let

Brexit is dominating the national debate in the UK at the moment, and more often than not the discussion around this thorny issue has taken on a negative tone. There is a lot of insecurity about what leaving the EU could mean for British businesses and the economy, and understandably so, particularly when the terms of the withdrawal are yet to be finalised. As far as real estate investment is concerned, there are questions being asked about what Brexit will mean for the property market. It’s true that there is a degree of uncertainty on this front, but looking at some of the sector’s core trends and recent track record, there is also a strong case for investors to feel optimistic. Here are some of the main reasons why…   Strength of demand For buy-to-let investors, tenant demand is a critical deciding factor in the success of their investment, since it fuels regular rental yields and minimises the risk of property void periods. Various factors have contributed to rising demand for housing on the private rental market in recent years, including the growing student population. Britain’s higher education institutions traditionally hold powerful appeal for people in the UK and further afield, and this remained the case in 2018, regardless of the country’s impending departure from the EU, according to UCAS figures. In thriving university cities such as Liverpool and Newcastle, student accommodation has proven itself to be a lucrative asset class, and this is a trend that shows no signs of abating in the years to come. Looking beyond the student segment, the private rental market as a whole is witnessing growing demand from tenants. One of the main reasons for this is the demand/supply imbalance, with the delivery of housing failing to keep up with the number of people […]

How landlords can maximise yields from student property in 2019

How landlords can maximise yields from student property in 2019

Posted Posted in Student Property

UK student property has proven itself as a lucrative investment in recent years, and this trend looks set to continue in 2019. Landlords keen to secure the best possible return on the assets in their portfolio this year will be focusing on a number of major factors, one of which is rental yield. Here are some key steps that can help to deliver the best possible rental yields on student property. Find the right location Location is a vital consideration in any property investment, of course, but it’s particularly important in the student housing market. Students will be looking for living space that offers benefits such as easy access to their campus and proximity to local amenities. Landlords that can meet these requirements will have very little trouble finding good tenants. According to TotallyMoney, areas with high student populations, such as Liverpool and the north-east, offer some of the highest rental yields in the UK. Six Liverpool postcodes featured among the top 25 buy-to-let locations for 2018, an encouraging statistic for those who have invested in projects such as Baltic 56. Charge the right rent Landlords looking to get the best possible rental yields on student property need to ensure their tenants are paying the right amount. This is likely to require some research on the local area and general trends in the private rental market. Charging too little creates the obvious disadvantage of missing out on rental income, even if it does offer the benefit of attracting stronger demand from tenants. However, it’s also important to be cautious of asking for too much. If there are cheaper alternatives available in the same area, the risk of void periods will increase. Offer a quality product In addition to location, students searching for accommodation will place a big emphasis on the […]

Buy to Let student property

Buy-to-let student property gains momentum with investors, says CBRE

Posted Posted in Buy-to-Let

Buy to let student property Trends in the UK Buy-to-let student property market have offered a number of reasons for investors to be cheerful this year, according to CBRE’s newly-launched Student Accommodation Index. The real estate services firm highlighted a number of positive trends in research covering the year to September 2018. During this period, capital values increased by 6.5 per cent year-on-year. This marks a big improvement from the annual growth of 4.5 per cent recorded in the 12 months to September last year. For investors, this is clearly a positive pattern, as is the recent increase in rents, which showed a three per cent gross increase and 3.4 per cent net growth in the latest surveyed period. On a national level, annual total returns were 12.3 per cent during the year to September 2018. Buy-to-let student property is now a readily available asset class that offers investors reliable rental returns. CBRE’s research also examined regional trends, with locations outside central London delivering total returns of 10.5 per cent and capital growth of 4.5 per cent. Other findings showed that small (fewer than 250 beds) and medium (250-500 beds) properties provided capital growth of 5.8 per cent and 6.2 per cent respectively, fuelling total returns of 11.6 per cent and 12.2 per cent respectively. Jo Winchester, head of student accommodation at CBRE, said: “This first published Student Accommodation Index demonstrates the continued strong performance of the sector, which has outperformed the CBRE Monthly Index over the last eight years. “UK student accommodation is now firmly established as a mainstream investment sector.” For investors looking for the best place to invest in student accommodation, Experience Invest is currently offering a number of opportunities for investors interested in this lucrative asset class, such as Opto Student Newcastle and Aura Student Liverpool. […]

BoE raises interest rates - what could this mean for property investment?

BoE raises interest rates – what could this mean for property investment?

Posted Posted in Buy-to-Let

  The decision of the Bank of England Monetary Policy Committee (MPC) to raise the base rate by 0.25 per cent this month may not seem like a very drastic move, but in its historical context the decision has been widely seen as highly significant. Although it is true that the cut from 0.5 per cent to 0.25 per cent during the panic that followed the 2016 EU referendum was reversed a few months later, the increase to 0.75 per cent has a wider significance. It has been described as the first “real increase” since 2007, with the MPC’s minutes hinting that this is the start of a process, albeit probably a slow one, of moving the base rate back towards something that might be considered historically normal. Interest rates and inflation Here Experience Invest looks at how the change in interest rates may impact property investors. In its minutes, the MPC revealed that the vote was unanimous and signalled its intention to take further action to curb inflation. It said: “The Committee also judges that, were the economy to continue to develop broadly in line with its Inflation Report projections, an ongoing tightening of monetary policy over the forecast period would be appropriate to return inflation sustainably to the two per cent target at a conventional horizon. “Any future increases in bank rate are likely to be at a gradual pace and to a limited extent.” Investors thinking about how the increased cost of mortgages might impact them need to weigh up two key facts. Firstly, the clearly stated intention of the MPC is to bring the base rate upwards, essentially acknowledging that normalisation is required to prevent inflation from continuing to exceed the target rate. However, the pace is bound to be slow, not just because the MPC […]