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 […]

Halifax reveals faster property market growth

Halifax reveals faster property market growth

Posted Posted in House Prices

  UK property prices grew by 3.3 per cent year-on-year in the three months to July, according to new data published by Halifax. This represented a significant jump from the three months to June, when the year-on-year increase was only 1.8 per cent.   A key reason for this increase was a 1.4 per cent month-on-month jump in prices in July.   The bank’s latest House Price Index showed that the typical UK home now costs a record £230,280.   As well as the year-on-year increase picking up, the quarter-on-quarter price rise also grew by 1.3 per cent on the February to April period.   Halifax managing director Russell Galley said: “While the quarterly and annual rates of house price growth have improved, housing activity remains soft.   “Despite the recent modest improvement in mortgage approvals, the latest survey data for new buyer enquiries and agreed sales suggest that approvals will remain broadly flat until the end of the year.”   He added that one factor that should help underpin sales and prices is the jobs market, with employment numbers at a record high and the number out of work at its lowest rate since 1975. This means job security is particularly high at present, notwithstanding fears of what might elapse after Brexit.   Another factor Mr Galley considered is that of the recent Bank of England base rate rise. It might be suggested that this would impact on the market by deterring those who will have to pay more for their mortgages. However, he said: “We do not anticipate that this will have a significant effect on either mortgage affordability or transaction volumes.”   If the base rate rise has little impact, this may be due to the slow speed of change. While the Bank of England’s Monetary Policy […]

Experience Invest returning to Cityscape Global, Dubai

Experience Invest returning to Cityscape Global, Dubai

Posted Posted in Experience Invest

  The Cityscape Global industry exhibition will once again be the focus of the real estate investment world later this year, as it returns to the World Trade Centre in Dubai from October 2nd to 4th.   Experience Invest will be returning for our second consecutive appearance at the show, and we will have plenty of exciting information and opportunities to share with fellow attendees. So you know what to expect, here is a video from last year’s show in Dubai.         Highlights from Experience Invest   There will be a lot for delegates to look forward to at Cityscape Global 2018, including the latest updates on industry developments, exclusive offers and opportunities to network and make new contacts. If you would like to keep up-to-date with the latest updates and announcements about the Cityscape Global show, visit the  Experience Invest Facebook page.   Experience Invest will be exhibiting at stand 4F30, where visitors will be able to see a new 3D model of the Imperial Square development in Luton, as well as iPads displaying product information and video screens showing company and development details.   The exhibition will provide a platform for the phase two launch of the Infinity Waters apartment complex in Liverpool, as well as phase three of Aura Student Liverpool and the Opto Student Newcastle project. A selection of highly desirable one bedroom apartments in Imperial Square – a residential, London commuter belt development – have also been held back for release at the show.   One of the strongest incentives for investors to attend the show is that they will have first pick of the units available in the new phase launches. This will include the best river and city view apartments at Infinity Waters and a great selection of one-bedroom apartments at Imperial […]

Liverpool tops list of UK buy-to-let hotspots

Liverpool tops list of UK buy-to-let hotspots

Posted Posted in Liverpool

Property investors looking to gain healthy returns from the UK buy-to-let market should look beyond London to some of the country’s most popular university cities, research has indicated. Comparison website TotallyMoney released a report highlighting the attractive yields available in some of the UK’s regional locations, with Liverpool offering the biggest returns of all. One of the key drivers of this trend is the strong demand coming from the student market. A dependable market Highlighting the opportunities available to investors who are willing to look beyond London and south-east England, the report showed that university cities such as Liverpool, Middlesbrough and Newcastle offer potential rental yields up to seven times higher than those available in the capital. This is the result of consistent, reliable demand from students, combined with relatively low house prices. Looking at specific locations, the study put Liverpool’s L7 postcode at the top of the list for typical rental yields, while the city’s L6 postcode was ranked second and L1 area was seventh. Middlesbrough and Newcastle-upon-Tyne also featured in the top ten. All of these destinations share the characteristic of being close to higher education institutions and offering lifestyle benefits for students. TotallyMoney’s head of brand and content, Joe Gardiner, said: “With students flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords. “Since so many students are looking for accommodation, landlords may use this as an opportunity to drum up competition between them.” Attractive opportunities Liverpool in particular is currently offering a number of enticing opportunities for investors, such as Aura Student Liverpool, a complex of apartments situated in the Knowledge Quarter. This is the closest new-build student development to the University of Liverpool. Features including fully furnished studio accommodation, […]