UK Build to Rent

BPF pledges longer tenancies and higher market supply for Build to Rent

Posted Posted in Build to Rent

The British Property Federation (BPF) has pledged to improve the rental market through the UK Build to Rent sector, which has the potential to become the major player in the sector over the next few years. In a move which housing minister Gavin Barwell has called “great news”, the BPF said it will make more homes available, as well as longer periods of tenancy. Drafted in line with the targets that were set out as part of the government’s latest white paper on housing, the pledge from the BPF and 20 major parties with an interest in the UK Build to Rent sector says it will “demonstrate the sector’s commitment to providing three-year tenancies and working with government to ensure the sector can play its part in rolling back 20 years of housing undersupply”. Two of the major benefits that will come from the pledge will include longer tenancies. This is something that the rental market will welcome in general, as it offers better security in the long term.     Now that people are more open to living in rental homes for longer periods, as opposed to simply seeing them as a stop gap until they can afford to buy, longer tenancies are preferable, because they allow people to see their rented property as a home. It’s something that has been on the cards for some time in rented homes, but a pledge from an organisation such as the BPF should help to make this a reality by normalising longer tenancies. Landlords welcome longer tenancies  as they help to reduce void periods.   Ian Fletcher, the BPF’s director of real estate policy, said: “The Build-to-Rent sector welcomes the government’s multi-tenure ambitions for the housing market, as outlined in the recent Housing White Paper, and this pledge underlines one of […]

The best regional investment hotspots for property

The best regional investment hotspots for property in 2017

Posted Posted in Property

Investment in rental properties is one of the most popular ways to save for the future in this day and age. With returns of between five and eight per cent possible, and a rise in demand as fewer people opt to own a home year after year across the UK, it’s no surprise that rental investment is thriving across the country.   But investing is about more than simply buying a rental home and waiting for the money to start rolling in. You need to know where to invest, and why, to ensure you have the best chance of success. Here, we take a look at a few of the stars of the British rental market and why they make great places to invest in property. Northern Powerhouse   Without a shadow of a doubt, the Northern Powerhouse cities are some of the best to invest in at the moment away from London. With a focus on creating a thriving economy in the north and investment to back up those desires, it’s clear that places like Liverpool, Manchester, Leeds and Sheffield have the potential to bring investors in property therein strong returns for years to come.   The regeneration of Liverpool and the subsequent migration of more businesses there in the next few years is set to make the city a fantastic modern place to not only work, but also live. This is likely to bring an influx of young professionals to the city, who will be looking for purpose built rental properties that give them the lifestyle they want to lead.   It’s a similar story across the Powerhouse as well, with Manchester seeing a continued rise in media companies and Leeds’ rise in digital marketing industry standings both helping to bring more skilled young people to the region, […]

Horror Houses: UK Property Investment Improves Living Standards

Posted Posted in Buy-to-Let

From leaky pipes to coin-operated showers, from dodgy DIY to uninvited, furry visitors, the Experience Invest team has had their fair share of horror house stories. Student digs Many of the team’s student housing horror stories are from years ago and before legislation to improve HMOs was introduced, and before investment in a new wave of purpose-built student accommodation had begun. When I moved out of university halls in 2006, I moved into a shared house in the second year with friends. The property was cheap, spacious for the price and, most importantly, close to the university. Everything seemed OK, until things started to break. First the hot water broke down, then we discovered mould, and one housemate was locked inside her room because the door handle (attached by Blu Tack) had fallen off – but on the outside of the door.     With £5 billion worth of investment in the UK’s student property sector in 2015 alone, horror stories like mine are starting to become a thing of the past. According to the latest figures from the property experts at Knight Frank, there are around 525,000 purpose-built student rooms across the country. It is thought that the UK’s student sector is now worth an impressive £43 billion in terms of value (stock owned privately and by universities). By the end of 2016, £4 billion would have been invested in UK’s student accommodation sector. Looking back, my house of horrors wasn’t too bad but I would stay in a purpose-built student development like London Park House if I had the choice again.   Generation Rent There are currently £4.5 million tenants across the UK. ‘Generation Rent’ is a term which is thrown about a lot these days and why wouldn’t it be? The huge housing deficit has forced people […]

Take a look at our new UK housebuilding infographic

Posted Posted in UK Housing

UK housebuilding in numbers infographic explains the numbers behind the headlines. Find out why the construction of new properties is important UK housebuilding is a hot topic at the moment, that’s why the experts at Experience Invest have put together a new infographic. As you can see, the UK housebuilding infographic cover a selection of areas in and around the housing crisis. There is a huge undersupply of housing across the country. Data from the Yorkshire Building Society has shown that UK housebuilding targets have been missed by 1,199,180 since 2004.     UK Housebuilding Promises In 2015, the government promised to build 200,000 new homes per year up until 2020 in a bid to ease the market. In 2015, just 142,890 houses were built in the scheme, 29% under target. Although housebuilding appears to be an important part of the government’s plan, the House of Lords Economic Affairs Committee believes that the target should be 300,000 per year if the gap between supply and demand can be rectified. Housebuilding in 2016 2016 has been a year for change in the UK’s property market. The introduction of higher Stamp Duty tax for buy-to-let and second home purchases, the result of Brexit and the drop in the value of sterling have had varied effect of the market. The introduction of lower interest rates by the Bank of England has now opened up the market to first-time buyers and many overseas investors have taken advantage of the drop in the value of sterling. Off plan property investment could allow developers to build housing and receive funding across the build phase. “Our new UK housebuilding in number infographic simply rounds-up the numbers behind the headlines. The spotlight has been on the property market more than ever in 2016 and we believe the market will continue […]

Homeownership reaches lowest level in 30 years

Homeownership reaches lowest level in 30 years

Posted Posted in Buy-to-Let

Homeownership reaches lowest level in 30 years in England a new report by thinktank Resolution Foundation has revealed. The widening gap between earnings and property prices have been blamed for the drop in the amount of people who own property. The report highlights that the problem is country wide and extends to locations outside of London. “London has a well-known and fully blown housing crisis but the struggle to buy a home is just as big a problem in cities across the north of England,” Stephen Clarke, Resolution Foundation, commented. Greater Manchester, for example, has seen a massive drop in the amount of people owning their own house since 2000s. In 2016 just 58% of households in Manchester were homeowners. This figure marks a significant drop to the 72% recorded in 2003. Read more…  Government to Build more Homes According to Yorkshire Building Society, house building targets across the UK have be missed by 1,199,180 since 2004. The huge housing deficit and rising property prices has meant that homeownership is out of the reach of many first-time buyers. The Government must build 300,000 homes each year in England to help solve the housing crisis, an increase of 50% from its current target (House of Lords Economic Affairs Committee) however, it seems highly unlikely that these targets will be met. Can Build-to-Rent Help? Private developers and investors have provided a much needed lifeline to the UK’s property market in the form of build-to-rent sector. Developments like The Residence Manchester from Experience Invest offer property investors a way to purchase off plan apartments with a discounted price. The development will contain 300 new-build apartments ranging from 1, 2 and 3 bedroom units. The city centre location will provide much needed housing for the local area. However, The Residence won’t be just another […]

Experience Invest invites you on a virtual walkthrough of a new buy-to-let project in Manchester

Posted Posted in Buy-to-Let

Experience Invest has just released a new walkthrough video of its latest buy-to-let project in Manchester. The Residence is a new £70 million Build-to-Rent project which overlooks the River Irwell in Manchester. The construction will see 300 apartments build across two landmark towers. Offering stunning river views and overlooking Manchester’s vibrant city centre, The Residence will contain large one bed, two bed and three bed apartments. Follow the link to see inside The Residence Manchester which is exclusive to Experience Invest. Limited number of units Due to the high demand for Build-to-Rent apartments in Manchester, the development is now 70% sold out. Apartments are available with a 16% exclusive investor discount and, due to the location’s prime location, investors will be able to capitalise rising property prices and the continued regeneration and expansion of Manchester’s city centre. According to the experts at Jones Lang LaSalle, property prices in Manchester could rise by 26.4% over the next four years. Investors entering The Residence with a 16% discount will secure strong capital growth potential in the mid-to long-term. Upon completion, investors will receive 7% NET per annum which will assure for 3 years. Throughout the construction period 3% interest will be paid on all deposited funds. UK’s no.1 location for buy-to-let returns In a time where the UK’s government has actively put plans into place to discourage buy-to-let investment to enable first-time buyers to get onto the market, The Residence will provide assured rental returns for 3 years. Rental returns which are higher than comparable properties in the local area and in London. According to HSBC, Manchester is the UK’s best location for buy-to-let return. Due to Manchester’s on-going regeneration and its status within the Northern Powerhouse, rents are predicted to rise by 26.3% between 2016 and 2020 (JLL). Click the icon […]

Is student accommodation still an attractive option for investors?

Is student accommodation still an attractive option for investors?

Posted Posted in Student Property

With a record level of £5.9 billion of investment in the UK’s student accommodation investment in 2015, the sector is thriving. Student accomodation is the UK’s top performing asset class. The experts at Savills believe that £4 billion will be invested in student assets in 2016. This shows real potential for strength in investment to continue for many years to come as the sector continues to perform on a mainstream level. Since April 2016, an additional 3% Stamp Duty levy has been applied to UK buy-to-let property and on second homes purchases however, not many investors realise that student property is exempt from the tax increase. Pay no Stamp Duty Tax As Stamp Duty Tax is not paid on UK student property, investors can save between 3% and 15% on their purchase depending on the price of their investment. Student accommodation tends to cost less than residential property which could increase demand as more people look towards the sector as a way to get onto the property ladder without spending too much initially. What’s more, student property provides investors with the freedom to buy as many units as they like. Investors can purchase multiple student apartments equal to or more than the value of a residential apartment and save thousands on Stamp Duty tax. There are also no restrictions for overseas buyers. Where to invest? Some UK university towns and cities provide better opportunities than others. Cities like Liverpool, Manchester and Leeds all have a large student population and, despite new student rooms coming on to the market, there is still an acute undersupply of rooms. Experience Invest recently commented on Liverpool’s booming student property market. Follow the link to find out more. Commuter belt towns such as Luton and Brighton also can offer investors higher than average returns from student […]

Could these passive income ideas earn you money?

Posted Posted in Investment

Welcome back to the Experience Invest blog where we discuss what has been going on in the UK’s property market. Today we will be looking at passive income ideas. What is a ‘passive income’? A true passive income means no regular work, just a regular income. This means that instead of working a 9 until 5 job every Monday to Friday, a person could receive an income without leaving their home. Sounds too good to be true, doesn’t it? However, it is achievable. Many people aspire to generate a passive income so they can walk down the desirable path of financial freedom. For our latest blog post, the Experience Invest team has been thinking about other passive income ideas. From mobile apps to vending machines, from selling items on eBay to selling stock photos, we have come up with a range of passive income ideas. However, if setting up an online business or becoming an affiliate marketing machine isn’t quite what you are looking for, you may be happy to hear that there is still money to be made from the UK’s property market. Check out our inforgraphic for some passive income ideas (feel free to share it if you like it)… Can you generate a passive income from property? With the recent Stamp Duty Tax changes on second properties and buy-to-let investment now in place, landlords and investors may have had to consider the performance of their property portfolio. As purpose-built student property is exempt from the new stamp duty levy, many investors have looked towards this market to boost their income. Download our new Q2 2016 Student Accommodation Investment Guide to find out more information about how you can generate a passive income from property. The property experts in the Experience Invest team have been featured in wide […]

London Financial Centre Experience Invest

UK Commercial Property Sees Record Year

Posted Posted in Experience Invest, Property, UK Housing

Hello and welcome back to the Experience Invest blog, where we bring you the latest UK property sector news. A record amount of money flowed into the UK’s commercial property sector in 2015. Booming market The latest survey from the Royal Institution of Chartered Surveyors (RICS) shows that confidence is strong in all UK commercial property sectors. Property Wire reported that compared to the previous quarter, 43% more surveyors saw a rise in demand for industrial space in the final quarter of 2015. Meanwhile, 29% said the same of UK office space while 26% more saw increased demand for retail property in the final three months of last year. As such, 35% more chartered surveyors questioned projections that rents will rise across all UK commercial property sectors in the first quarter of 2016. This may be because new data from Lambert Smith Hampton found that UK commercial property returns measured 13% in 2015, although the firm added that as capital growth slows, this should fall to 9% this year. Funds flowing Financial news site The Wall Street Journal reported that the Lambert Smith Hampton study also found that a record £63.4 billion of investment flowed into UK commercial property in 2015. This is a rise of 4% on the year before and this record commercial property inflow was boosted by a 23% investment increase in the final three months of the year. Alternative commercial property was the most successful asset class in 2015. Last year it saw £14.8 billion in investment, a 4% increase on 2014. Out of this total, £8.2 billion was invested in hotel and leisure assets, while £4.6 billion was devoted to Britain’s student accommodation sector. Also, foreign investment in the UK’s commercial property market rose by 9% in 2015, meaning international buyers now account for 50% […]

Experience Invest

East of England sees house price rise

Posted Posted in Experience Invest

The team at Experience Invest always keep a keen eye out for the latest house price figures from the Office of National Statistics (ONS), and the latest House Price Index for July 2015 contains some interesting reading for those interested in property investments trends. Here at Experience Invest, we recently celebrated over ten years in business (you can read about our celebrations on Yahoo Finance), after over a decade in property consultancy you’d expect that we’ve seen every sort of property market trend come and go, but we can’t think of a time before when the East of England over took London in property growth, but for July 2015, it did. East of England property Property prices in London saw their biggest gains last year, and in to the year-end July 2015, London property prices rose 5.5% which was slightly lower than the 5.6% average in England. However, prices in the East of England rose by 8.3% in the same period. The East of England rise has been interpreted by some commentators as the ‘action leaving London’. However, we’re more likely to see this as the knock on effect of last year’s property rises in the capital. Now, priced out of the area many buyers and looking at the East of England and heating up the market there. We believe the action in London is set to continue but the higher prices in the capital are now dictating a slightly slower pace in the market. Northern Ireland Other interesting statistics thrown up by the ONS report is the recovery currently taking place in Northern Ireland. The financial crisis hit property prices everywhere, but few places were as badly hit as Northern Ireland. Indeed, even today prices are still 42% below the 2007 peak. Northern Ireland has reportedly seen a 7.4% […]