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Surrenden Invest London

London 2017 – buy-to-let investors keeping the faith 2> By | Market Research | No Comments

London 2017 – buy-to-let investors keeping the faith

By Surrenden Invest | March 21, 2017
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Property prices in London are a law unto themselves. The London housing market is one of the most exciting – and sought-after – in the world, while rental property in London also generates a great deal of interest. Figures from the HomeLet Rental Index show that average rental values in the UK capital reached £1,520 pcm in February 2017. That’s a jump of 23% since 2011, according to the London Economic (compared with a 14% rise across Great Britain as a whole).

For buy-to-let investors in London, the prestige of owning a property in such an iconic city, combined with the high rental income, is a winning combination. Regardless of Brexit, England’s capital city remains a firm favourite with investors from around the world.
The London housing market, like many of the UK’s larger cities, is facing a massive shortfall of residential accommodation. Supply simply cannot keep pace with demand. Some 50,000 homes are required annually in the capital in order to address the shortage. At present, only around half that amount are being built.
Buy-to-let property in London plays a key role in servicing the capitals residents over the coming years. According to PwC, 60% of Londoners will rent their home by 2025. The fact that 60% of the capital’s residents were owner-occupiers in 2000, throws the huge spike in demand for rental property in London into sharp relief.
Rising prices have played a large part in this trend (though they are far from being the only factor behind it). Figures from Savills and the Land Registry show that the average property price in London is £530,000, while the median inner London salary stands at just £34,000 a year. First-time buyers pay an average of £96,000 for their deposit, according to Halifax. For many Londoners, renting is the only option.
London draws in bright young things from around the world thanks to its employment opportunities, cultural pursuits and world-class social scene. 16% of Outer London’s population is aged 25 to 34. The figure rises to 25% for Inner London, compared with the ONS’s figure average UK figure of 13%. But many of those who head to the city for work will never be able to buy there.
Buy-to-let investors in London also benefit from the sheer size of the city. Such incredible diversity makes for a wide variety of up-and-coming areas and investment entry prices. This makes London attractive to a broad range of investors.
While the UK’s 2016 decision to leave the EU, and the formal Brexit process beginning in 2017, have made many families in the UK more cautious about moving house, the capital remains an enticing prospect for buy-to-let property due to the fact that demand for housing in London so vastly outstrips availability. Despite the Brexit-related uncertainty, prices in the capital still rose by 3.2% in 2016, according to London estate agent Foxtons.
The long-term outlook also remains positive. Projections from Savills for house price growth over the coming five years put central London price growth at 21%, other prime London growth at 15%, suburban growth at 16%, inner commuter area growth at 20% and outer commuter belt growth at 19%. Any Brexit-related jitters in prices are expected to be short-lived, with promising prospects for growth over the five years to the end of 2021.
London’s infrastructure and connectivity also support property investment in the city. As well as outstanding services running across the city, London is easily accessible from other major UK cities, as well as operating fast, regular train services to key European destinations. The city is also served by a vast network of airports, including Heathrow, Gatwick, London City, Stansted and Luton.
In addition, new travel infrastructure projects such as Crossrail and HS2 are benefitting buy-to-let property investment in London by creating newly desirable pockets of the city along their routes. Additional and enhanced commuter links are improving London’s already impressive transport network and benefitting investors as well as residents.
While investors are of course focused on London’s unique potential in terms of financial returns, there is also an added bonus to buying property in the capital. The prestige of owning property in London is not to be underestimated.
London is famous around the world. According to the MasterCard Global Destinations Cities Index, it was the most visited city in Europe in 2016 and the second most visited city in the world, welcoming some 15.96 million international visitors. From Big Ben and the Houses of Parliament to the London Eye, the English capital’s iconic imagery is recognised far and wide. Owning buy-to-let property in London unarguably carries a certain credence.
All in all, the financial and reputational aspects of London real estate investment combine to make the city a truly unique offering when it comes to buy-to-let property investment. With a population of 8.674 million, more than 50% of whom rent their homes, buy-to-let investors in London enjoy access to in excess of 4.3 million tenants. Coupled with the projected five-year price rises of between 15% and 21%, it’s hard to argue with the logic of turning to the housing in London when it comes to profiting from a UK buy-to-let investment property.

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Surrenden Invest Liverpool

Liverpool 2017 – booming northern buy-to-let location 2> By | Market Research | No Comments

Liverpool 2017 – booming northern buy-to-let location

By Surrenden Invest | March 21, 2017
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Liverpool is an ancient city that offers modern residents a superb blend of culture, heritage, leisure and economic opportunity. Over 800 years old, the city has held the titles of European Capital of Culture and World Capital City of Pop (thanks in large part to the legacy of The Beatles). Buy-to-let property in Liverpool also means that the city has plenty to offer to investors.

Present-day Liverpool is a thriving metropolis that attracts tourists from around the world. With World Heritage Sites scattered throughout the city, along with an excellent retail and restaurant scene, Liverpool has something to offer everyone. For sports fans, there are two football clubs (Liverpool and Everton), as well as the world-famous Grand National horseracing course at Aintree.
Liverpool’s economy is one of the largest in the UK. The Liverpool Economic Briefing 2016 provides the latest employment, jobs and business figures for the city. These show that employee jobs in Liverpool city region grew by 2.5% in 2014, with the city seeing relatively large growth in private sector employment. Driven by entrepreneurs in companies of all shapes and sizes, Liverpool’s private sector jobs increased by 8.1% in the years to 2014.
Considered over the longer-term (1998-2014), Liverpool’s employment growth stands at 13.5%, just ahead of the UK average of 13.4%. The figures provide a strong backdrop for those interested in buy-to-let property investment in Liverpool.
Liverpool’s economy is dominated by service sector industries including public administration, education, health, banking, finance and insurance. Tourism is also an important part of the city’s economic offering; figures from the Liverpool City Region Local Enterprise Partnership show that the city’s 54 million annual visitors are now worth some £3.8 billion in income to the local economy, supporting more than 49,000 jobs.
Liverpool’s economy is one of the most buoyant in the UK. CV-Library’s league table of the strongest job growth in the country showed that Liverpool experienced a 34.8% surge in job vacancies in Q1 2016, making it the city with the strongest year-on-year job growth in the country. Graduates, young professionals and buy-to-let investors in Liverpool are all keen to benefit from this position.
Liverpool is a buzzing hub of entrepreneurialism and energetic startups. Santander chose Liverpool as the location of its first business incubator and Launch22 opened its first non-London incubator there. The SparkUp accelerator programme launched by the local Chamber of Commerce has encouraged the blossoming culture, positioning Liverpool as the north of England’s front-runner so far as new entrepreneurial talent is concerned.
The Northern Powerhouse initiative, to which Prime Minister Theresa May allocated a new cash injection of £556m in January 2017, has Liverpool as one of its key cities, with a focus on funding transport and infrastructure projects. These initiatives have been designed to put the city at the forefront of the UK’s leading business destinations.
The work of the Northern Powerhouse is backed up by a number of regeneration schemes. Regeneration in Liverpool is undertaken as part of the ambitious Liverpool Vision. The UK’s first urban regeneration company, Liverpool Vision was set up in 1999 to lead the physical transformation of the city. The results were impressive, with vast swathes of the city renewed, from individual projects such as museums, parks and stations to whole areas such as the Baltic Triangle and the Commercial District. Attention has now turned to New Chinatown and Royal Liverpool.
Regeneration in Liverpool is focused on several key projects at present. The £35 million regeneration of Lime Street station is in response to Network Rail’s projection that morning peak passenger numbers will double by 2043, from 20,000 to 40,000. The first phase of the regeneration is due for completion by September 2017, with work finished by autumn 2018.
The £260 million regeneration of Anfield is another example of Liverpool’s commitment to its vision of a dynamic future as a key part of the UK economy. Housing, parks, the expansion of the football stadium, a new public square and a range of new developments and retail outlets are all incorporated into the exciting, long-term vision.
A further important strand of the city’s future is the proposed Liverpool2 deep-water port, which has the potential to substantially alter distribution within the UK, as part of the £1 billion Superport logistics cluster.
Such a robust cultural and leisure offering, combined with a welcoming business environment and clear commitment to the future, has seen Liverpool’s population expand rapidly in recent years. According to the World Population Review, Liverpool’s residents total an estimated 467,000.
Liverpool’s growth in population, along with a demographic shift that has seen emerging young talent flock to the city, has altered the landscape of its property market significantly. Youthful entrepreneurs are looking for high-end homes in perfect city centre locations. The result is a thriving market for rental property in Liverpool that has seen buy-to-let properties boom.
The 2016 TotallyMoney Buy-to-Let Yield Map saw Liverpool comfortably included as one of the top ten postcode districts in the UK for high yields, while The Times flagged the city as one of the top five places for rental yields in the UK in 2016.
Meanwhile, Martin & Co Woolton has found that Liverpool tenants are, “happy to pay a little more to rent a really desirable property.” Great news for buy-to-let investors!
Liverpool’s property prices are reflecting the city’s popularity. Apartment prices have risen by 21.87% in the past five years, according to Zoopla, reflecting the potential for capital growth. This demonstrates the potential for excellent capital growth enjoyed by buy-to-let property investors in Liverpool.
With healthy yields, strong tenant demand and increasing property values, Liverpool has all the elements required by savvy investors looking to maximise profits from their buy-to-let property portfolio.

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Surrenden Invest Birmingham

Birmingham 2017 – a hotbed of economic activity 2> By | Market Research | No Comments

Birmingham 2017 – a hotbed of economic activity

By Surrenden Invest | March 21, 2017
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Buy-to-let property in Birmingham has captured investors’ imaginations for a multitude of reasons. This thriving West Midlands city is second only to London in terms of population size, with more than 1.1 million residents. The city is a hotbed of dynamic economic activity and young people have flocked to it in pursuit of economic opportunities, cultural attractions and recreation and leisure facilities. This has created strong, sustained demand for housing in Birmingham in recent years.

Birmingham’s population grew by an impressive 9% between the 2001 Census and the 2011 Censuses. The addition of so many people seeking to be part of the city’s future has done great things for Birmingham. This is reflected in the January 2017 Birmingham Economic Update, which shows every single indicator moving in the right direction.
The economic dashboard contained within the report shows that Birmingham’s nominal GVA is up by £1.2billion (5.1%), resident earnings are up by 3.8% and NVQ4+ qualifications are up by 17.0%. The only downward movement relates to claims for unemployment benefit, which have reduced by 6.2%. This is all excellent news for buy-to-let investors in Birmingham.
Also positive are Birmingham’s entrepreneurial credentials. Business startups in the city were up by 37%, according to the January 2017 Economic Update, reaching a level of 65.8 per 10,000 residents.
In keeping with its dynamic workforce and thriving economic activity, Birmingham is undertaking an ambitious City Centre Masterplan, to ensure that the city remains a world-class venue for those who live and work there. The second phase of the Big City Plan, the City Centre Masterplan aims to expand the size of the city core by 25%, running from 2010 to 2030 and covering five areas of development estimated to be worth £10 billion.
The plan incorporates some 5,000 new homes and 50,000 new jobs. A number of impressive elements have already been completed, including the new Library of Birmingham and the first new city park since Victorian times (Eastside City Park). Such developments are already benefitting those who have invested in buy-to-let property in Birmingham, but adding to the desirability of the city as a place to live.
The City Centre Masterplan also aims to improve Birmingham’s transport infrastructure. This included the £600 million redevelopment of New Street Station, which opened in September 2015. The redevelopment was much-needed – Birmingham New Street’s annual rail passenger numbers more than doubled between 2004/05 and 2014/15, rising from 16.2 million to 35.3 million, based on figures from the Office of Rail and Road Statistics.
Birmingham’s transport infrastructure is set to receive a further massive boost, thanks to the high speed rail network planned to run between the city and London, known as HS2. According to independent research undertaken in 2013, the implementation of HS2 could lead to 26,000 new jobs in Birmingham/Solihull, an average gross value added increase of £680 per worker and a £4 billion increase in annual economic output.
Birmingham is a key UK hub for foreign direct investment (FDI), with incoming firms citing the city’s strong talent pool, affordable space and transport links as reasons for their belief in Birmingham. In 2015, the city was the third greatest recipient of FDI in the UK, securing its best investment results for a decade, according to the EY UK 2016 Attractiveness Survey.
Housing in Birmingham – and particularly rental property in Birmingham – has experienced increased demand as a result of this influx of residents. Like much of the UK, the city is in the midst of a housing crisis. Buy-to-let property investment in Birmingham is seen as one of the key ways in which this need can be met. At present, it is estimated that some 89,000 homes are needed in order to house the city’s growing population.
House prices in Birmingham have risen by 4.12% in the past year, according to Zoopla, while rents are currently averaging £963 pcm. This is excellent news for buy-to-let property investors in Birmingham who are seeking the perfect blend of healthy yields and capital growth potential.
Across the UK generally, home ownership levels are falling sharply. Between the 2012/13 and 2014/15 English Housing Surveys, published by the Department for Communities and Local Government, home ownership fell from 65% to 64. As fewer people own their homes, more rent. The opportunity for those investing in buy-to-let property in Birmingham and other sought-after city locations is clear.
England’s second city certainly has a winning combination when it comes to attracting interest from investors. Its youthful and entrepreneurial workforce is creating a truly dynamic environment for businesses within Birmingham, while the mixture of foreign direct investment and regeneration funding from within the UK is elevating the entire city to the next level. For those with a keen nose for future success, buy-to-let property investment in Birmingham is well worth considering.

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Surrenden Invest Manchester

Manchester 2017 – no end in sight for booming rental property demand 2> By | Market Research | No Comments

Manchester 2017 – no end in sight for booming rental property demand

By Surrenden Invest | March 21, 2017
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Lying within the UK’s second most populous urban area, Manchester is one of the country’s most important cities. It has been ranked by the Globalization and World Cities Research Network as a beta world city, making it the highest ranked British city other than London.

Manchester is in the midst of a sharp expansion of its population, which is expected to reach 625,000 by 2025. This is excellent news for buy-to-let property investors in Manchester. According to Centre for Cities, Manchester is at the forefront of the revival of city centre living in the UK, with young professionals (those aged 35 and under who hold a degree) driving that growth.
Over the coming decade, the Greater Manchester area is expected to grow increasingly quickly, with analysts working for the city’s town hall forecasting a population increase of 20% by 2025. Rental property in Manchester is clearly going to be in much demand over the coming decade.
The reasons for Manchester’s rapid growth are varied. The city is at the heart of the UK government’s Northern Powerhouse policy, for which Prime Minister Theresa May announced a newly-allocated cash injection of £556m in January 2017. The initiative seeks to redress the UK’s north/south divide and focus investment on the northern half of the country.
The Northern Powerhouse focuses on improved transport links and the diversion of money and power in order to grow local cities. Manchester is pegged as the main beneficiary of the approach, having been handed a far-reaching package of powers by Chancellor George Osborne. An elected mayor, to be in place by the end of 2017, will lead the city in its new flagship Northern Powerhouse status.
Manchester already enjoys a decent transport infrastructure, including international connections. Passenger numbers exceeded the 25 million mark at the city’s airport in 2016, making it the third busiest airport in the UK (and the busiest outside of London).
Longer-term international transport connections are also promising. The UK’s new high-speed railway system, known as HS2 and due for completion by 2033, will deliver a Manchester to Paris journey time of just 3 hours 38 minutes. Domestic journey times will also be slashed, with travel from Manchester to Birmingham reduced to just 1 hour 8 minutes.
Regeneration in Manchester has enjoyed significant funding in recent years. The recently completed Spinningfields area of the city centre showcases the best of contemporary city planning, with world-class retail and leisure facilities benefitting all those who live in and visit the city, as well as buy-to-let investors in Manchester who are keen to profit from its property market.
The forward-looking local government has focused on attracting foreign direct investment (FDI) for Manchester and using it to the city’s advantage. According to the EY Attractiveness Survey UK 2016, “Manchester has been the leading recipient of FDI among England’s major urban centres in every year since 2009.”
Manchester’s growing economy is a source of pride for the city’s residents. According to figures from the Office for National Statistics, Manchester’s metropolitan economy is the second biggest in England. The Manchester Evening News reported in 2015 that the city was growing faster than Paris, Tokyo and Dubai.
Swift population growth and a backlog from several years of housing undersupply have combined to mean that Manchester’s overall backlog has now reached over 40,000 homes. The pressure this has put on supply has thrown into sharp relief the need for plentiful accommodation as demand spirals.
Along with the rest of the UK, Manchester is experiencing a decline in owner-occupier levels within its property market. Nationwide, home ownership fell from 65% to 64% between the 2012/13 and 2014/15 English Housing Surveys, published by the Department for Communities and Local Government. More good news for those investing in buy-to-let property in Manchester!
As owner occupier levels decrease, rental levels rise. With city living experiencing a sustained renewal, this has created an exciting environment for buy-to-let investors in Manchester who are seeking to profit from property. Property prices in the city rose by 8.9% in 2016, the second fastest rate in the UK. The undersupply of rental property in Manchester also means that home price inflation in the city is at its highest rate for 12 years.
Buy-to-let investors in Manchester have come to the rescue of the city’s booming population of renters, with a range of high quality buy-to-let offerings in the past few years. However, the sharply increasing population means that a great deal more buy-to-let property in Manchester is required in order to meet tenant demand.
The impact of this is already being felt, with Manchester included in the UK’s top ten postcode districts for buy-to-let by yield in 2016, based on figures from the TotallyMoney Buy-to-Let Yield Map.
The city’s unique situation has made it the ideal place for buy-to-let investors in Manchester who are looking for a combination of capital growth, strong demand and competitive yields, not just for the short-term but (thanks to the vastly increasing population), for the longer-term as well.

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Liverpool 2016 – booming buy-to-let in the north of England 2> By | Market Research | No Comments

Liverpool 2016 – booming buy-to-let in the north of England

By Surrenden Invest | February 10, 2016
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Liverpool is an ancient city that offers modern residents a superb blend of culture, heritage, leisure and economic opportunity. Over 800 years old, the city has held the titles of European Capital of Culture and World Capital City of Pop (The Beatles being a large contributing factor to the latter title).

Present-day Liverpool is a thriving metropolis that attracts tourists from around the world. With World Heritage Sites scattered throughout the city, along with an excellent retail and restaurant scene, Liverpool has something to offer everyone. For sports fans, there are two football clubs (Liverpool and Everton), as well as the world-famous Grand National course at Aintree.

Liverpool’s economy is one of the largest in the UK and is dominated by service sector industries including public administration, education, health, banking, finance and insurance. Tourism is also an important part of Liverpool’s economic offering; figures from the Liverpool City Region Local Enterprise Partnership show that the city’s 54 million annual visitors are now worth some £3.8 billion in income to the local economy, supporting more than 49,000 jobs.

Liverpool’s economy was one of the most buoyant in the UK during 2015. By May, the city had already topped CV-Library’s league table of the strongest job growth in the country. Liverpool is a buzzing hub of entrepreneurialism and energetic startups. Santander chose Liverpool as the location of its first business incubator and Launch22 opened its first non-London incubator there. The SparkUp accelerator programme launched by the local Chamber of Commerce has encouraged the blossoming culture, positioning Liverpool as the north of England’s front-runner so far as new entrepreneurial talent is concerned.

Physical regeneration schemes have accompanied Liverpool’s flourishing economy as part of the work of Liverpool Vision. The UK’s first urban regeneration company, Liverpool Vision was set up in 1999 to lead the physical transformation of the city. The results were impressive, with vast swathes of the city renewed, from individual projects such as museums, parks and stations to whole areas such as the Baltic Triangle and the Commercial District.

Modern-day Liverpool is still benefitting from substantial regeneration work. The £35 million regeneration of Lime Street and £260 million regeneration of Anfield are just two examples of a city that is committed to its vision of a dynamic future as a key part of the UK economy.

One hugely important strand of that future is the proposed Liverpool2 deep-water port, which has the potential to substantially alter distribution within the UK, as part of the £1 billion Superport logistics cluster. A new Chinatown project, new hospital and teaching school and also all on the cards.

Such a robust cultural and leisure offering, combined with a welcoming business environment and clear commitment to the future, has seen Liverpool’s population expand rapidly in recent years. According to the World Population Review, Liverpool’s residents totalled an estimated 467,000 in 2014, making it the UK’s ninth largest city.

The city’s growth in population, along with a demographic shift that has seen emerging young talent flock to the city, has altered the landscape of the city’s property market significantly. Youthful entrepreneurs are looking for high-end homes in perfect city centre locations. The result is a thriving rental market that has seen buy-to-let properties boom.

The 2015 LendInvest Buy-to-Let Index placed Liverpool as the UK’s second best buy-to-let area in terms of rental yield, with prospective tenants in the city “happy to pay a little more to rent a really desirable property,” according to Martin & Co Woolton.

Like much of the UK, Liverpool is experiencing vastly heightened demand for rental property. Martin & Co’s report showed 37% growth in tenant demand in the North West during 2015.

At the same time as demand for rental property is rising, so too are property prices. Liverpool city centre saw prices rise by 10.81% over the past five years, according to Zoopla, and by 3.16% in the last year alone.

It is this combination of healthy rental yields, rising tenant demand and increasing property values that has particularly caught the attention of buy-to-let investors in recent years. Liverpool has all the elements required by savvy investors looking to maximise the profits from their buy-to-let properties. A steady and sustained boom in buy-to-let is the result, with Liverpool positioning itself as one of the most important buy-to-let locations in the UK.

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Birmingham 2016 – the UK’s leading investment hotspot 2> By | Market Research | No Comments

Birmingham 2016 – the UK’s leading investment hotspot

By Surrenden Invest | February 9, 2016
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Birmingham is a thriving city in the West Midlands, which is often referred to as England’s second city, as only London beats it in terms of population. In recent years, many investors have sought Birmingham out as a residential buy-to-let investment destination. The city has captured investors’ imaginations for a multitude of reasons.

Birmingham is a city on the up. Between the 2001 Census and the 2011 Census, Birmingham’s population grew by 9%. The city now has more than 1.1 million residents, with young people flocking to the city in pursuit of its economic opportunities, cultural attractions and recreation and leisure facilities.

According to the October 2015 Birmingham Economic Update, the city’s employment figures are looking excellent. Total employment grew by 2.1% from 2013 to 2014, with the private sector driving the growth. The report confirms that Birmingham was the number one creator of private sector jobs among the core cities, accounting for 19.7% of the total. Overall, private sector employment in Birmingham rose by 5.7% over the year.

Birmingham is currently around a quarter of the way into its ambitious City Centre Masterplan, which forms the second phase of the Big City Plan. Running from 2010 to 2030 and covering five areas of development estimated to be worth £10 billion, the City Centre Masterplan aims to expand the size of the city core by 25%.

The plan incorporates some 5,000 new homes and 50,000 new jobs. A number of impressive elements of it have already been completed, including the new Library of Birmingham and the first new city park since Victorian times (Eastside City Park).

The City Centre Masterplan also aims to improve Birmingham’s transport infrastructure. This included the £600 million redevelopment of New Street Station, which opened in September 2015. The redevelopment was much-needed – Birmingham New Street’s annual rail passenger usage more than doubled from 16.2 million in 2004/05 to 35.3 million on 2014/15, based on figures from the Office of Rail and Road Statistics.

Birmingham’s transport infrastructure is set to receive a further massive boost, thanks to the high speed rail network planned to run between the city and London, known as HS2. According to independent research undertaken in 2013, the implementation of HS2 could lead to 26,000 new jobs in Birmingham/Solihull, an average gross value added increase of £680 per worker and a £4 billion increase in annual economic output.

Birmingham’s economic success and future potential has caught the attention of investors from around the world. The Greater Birmingham and Solihull local enterprise partnership (LEP) attracted more foreign direct investment than any other local enterprise partnership zone in the country during 2014/15, for the second year in a row. More than 6,000 jobs are credited with being created and safeguarded as a result of the investment, according to data from UK Trade and Investment. The area’s strong talent pool, affordable space and transport links were all cited by incoming firms as reasons for their belief in Birmingham.

Of course, all those talented workers need somewhere to live, which is creating strong demand for housing in Birmingham. Like much of the UK, the city is in the midst of a housing crisis. The city has space to build some 51,100 homes, but needs 89,000 in order to house its growing population. The shortfall of nearly 38,000 homes means that any new accommodation in the city is snapped up fast.

Increasingly, new homes in Birmingham are being purchased by investors (both from within the UK and overseas) as buy-to-let properties. Across the UK, home ownership levels are falling sharply. Between the 2012/13 and 2013/14 English Housing Surveys, published by the Department for Communities and Local Government, home ownership fell from 65% to 63%, the lowest level in nearly three decades.

At the same time as more people are renting, rents themselves are on the up. The HomeLet index revealed a rise of 8.5% across the UK in late 2015, which is excellent news for the growing number of investors turning to buy-to-let accommodation and looking for health yields in cities such as Birmingham.

England’s second city certainly has a winning combination when it comes to attracting investment. Its youthful and entrepreneurial workforce is creating a truly dynamic environment for businesses within Birmingham and the mixture of foreign direct investment and regeneration funding from within the UK is elevating the entire city to the next level. For investors with a keen nose for future success, Birmingham is definitely the place to be.

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Manchester 2016 – rental property demand set to boom for a decade 2> By | Market Research | No Comments

Manchester 2016 – rental property demand set to boom for a decade

By Surrenden Invest | February 9, 2016
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Lying within the UK’s second most populous urban area, Manchester is one of the country’s most important cities. The Globalization and World Cities Research Network ranked it as a beta world city in 2014, making it the highest ranked British city other than London.

Manchester is in the midst of a sharp expansion of its population. From mid-2013 to mid-2014 the Greater Manchester area added an average of nearly 50 people to its population every single day, according to government figures. The city’s population grew by 1.1%, compared to 0.8% across the UK. Over the coming decade, that growth is expected to speed up further, with analysts working for the city’s town hall forecasting a population increase of 20% by 2025.

The reasons for Manchester’s rapid growth are varied. The city is at the heart of the UK government’s Northern Powerhouse policy, which seeks to redress the north/south divide and focus investment on the northern half of the country. Improved transport links and the diversion of money and power are intended to grow local cities, with Manchester pegged as the main beneficiary of the approach, having been handed a far-reaching package of powers by Chancellor George Osborne. An elected mayor, to be in place by 2017, will lead the city in its new flagship Northern Powerhouse status.

In the longer term, Manchester is also set to benefit from the second phase of the UK’s new high-speed railway system, known as HS2, which will extend upwards from Birmingham and cut journey times from London to Manchester from 2:08 to 1:08. The system will also bring continental Europe within much easier reach for Manchester’s residents, with the current journey time from Manchester to Paris of 5:37 reduced to 3:38. The construction of the line should be complete by 2033.

In the more immediate term, substantial regeneration work is continually improving Manchester’s city centre, transport network, cultural attractions and sporting offering. The forward-looking local government has focused on attracting foreign direct investment (FDI) and using it to the city’s advantage. So much so, in fact, that EY’s UK Attractiveness Survey figures released in 2015 rated Manchester as the UK’s third most successful city in terms of attracting FDI, up from fifth place the year before.

Manchester’s growing economy is a source of pride for the city’s residents. According to figures from the Office for National Statistics, Manchester’s metropolitan economy is the second biggest in England. The Manchester Evening News reported in 2015 that the city was growing faster than Paris, Tokyo and Dubai.

The population growth experienced by Manchester has led to strong demand for new housing in hotspots across the city and the projected 20% increase in residents over the next decade has thrown into sharp relief the need for plentiful accommodation as demand spirals.

Along with the rest of the UK, Manchester is experiencing a decline in owner-occupier levels within its property market. Nationwide, home ownership fell from 65% to 63% between the 2012/13 and 2013/14 English Housing Surveys, published by the Department for Communities and Local Government, to reach the lowest level for nearly 30 years.

As home ownership levels have been falling, rental demand has been rising, creating an exciting environment for buy-to-let investors seeking to profit from property. Manchester is one city to have benefitted from the growing trend. As those swelling the ranks of the city’s residents have placed pressure on the property market, investors have come to the rescue with a range of high quality buy-to-let offerings.

But the sharp increase in population over the coming years will require a great deal more investment in new homes within Manchester, many of which will need to be rental properties in order to meet the heightened level of demand from tenants. The impact of this is already being felt, with Manchester listed as one of the UK’s top five areas for buy-to-let by yield in 2015, based on figures from LendInvest/Zoopla. Prices in the past year have risen correspondingly, up by 5.66% in the past 12 months and by 16.84% in the past five years, according to Zoopla’s data.

Manchester’s unique situation has made it the ideal place for buy-to-let investors looking for a combination of capital growth, strong demand and competitive yields, not just in the short-term but, thanks to the vastly increasing population, for at least the next decade.

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London 2016 – the city of choice for buy-to-let investors 2> By | Market Research | No Comments

London 2016 – the city of choice for buy-to-let investors

By Surrenden Invest | February 8, 2016
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London’s housing market is a law unto itself. For years, the capital has raced ahead of the rest of the UK in terms of house price growth and remains a favorite with investors from around the world.

But what makes London’s housing market unique?

There are certainly factors that the English capital shares with the rest of the country. The UK faces a chronic shortage of housing and successive attempts to solve the shortage have been overwhelmed by demographic changes, including an ageing population and a reduction in the size of the average household. From 2001 to 2011, the number of households in the UK increased by 8%, with two person households accounting for 34% of all households, according to Census data.

The UK simply cannot build homes fast enough. Coupled with that is growing demand for rental property, caused by rising prices. This is felt more sharply in London than anywhere else. In the City of London, the average annual salary is £48,023, according to the Office for National Statistics (ONS), yet Rightmove puts the average house price at £935,704. Price comparison website Go Compare recently reported that first-time buyers in London need a salary of £140,000 to get on the housing ladder, which falls rather short of the median average of £30,388 across the capital.

London draws in bright young things from around the world thanks to its employment opportunities, cultural pursuits and world-class social scene. 16% of Outer London’s population is aged 25 to 34. The figure rises to 25% for Inner London, compared with the ONS’s figure average UK figure of 13%. But many of those who head to the city for work will never be able to buy there. Renters accounted for 50.4% of households in London, according to the last Census.

The result is strong demand for rental property across the capital, making it the UK’s most attractive rental market in the eyes of many investors. The average property price in London, based on Land Registry figures, is £514,097 (as at December 2015), but there are many areas of the capital with lower entry points for investors seeking out up and coming areas, with a view to enjoying capital growth as prices rise, as well as rental income.

Despite London’s prices being so far ahead of the rest of the UK, many analysts are confident that they will continue to increase. Knight Frank has projected cumulative growth of central London house prices of 20.5% in the five years to the end of 2020. On the outskirts of the city, including the commuter belt, prices are set to rise even further: by 23.4%.

As developers fail to keep up with the pace of growing demand in the capital, the limited housing supply looks set to continue to push up property prices in London for the foreseeable future. According to estate agency Savills, “The market conditions we called ‘normality’ 10 years ago will not be resumed anytime soon.” It seems that London’s spiralling property prices have become the new norm.

While investors are of course focused on London’s unique potential in terms of financial returns, there is also an added bonus to buying property in the capital. The prestige of owning property in London is not to be underestimated.

London is famous around the world. According to the MasterCard Global Destinations Cities Index, it was expected to welcome some 18.82 million visitors during 2015, making it the world’s most visited city. From Big Ben and the Houses of Parliament to the London Eye, London’s iconic imagery is recognised far and wide and owning property in the English capital unarguably carries a certain credence.

All in all, the financial and reputational aspects of London real estate investment combine to make the city a truly unique offering when it comes to property ownership. With a population of 8.5 million, 50% of whom rent their home, London provides buy-to-let investors with access to 4.25 million tenants. Coupled with the projected price rises of upwards of 20%, it’s hard to argue with the logic of making London your city of choice when it comes to profiting from a UK buy-to-let investment property.

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There has never been a better time to invest in London

By Surrenden Invest | February 5, 2015
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Property Investment in London

There’s never been a better time to invest in property in London. With property values set to rise exponentially in the next decade, investors and international landlords are flocking to the capital to take advantage of the huge well documented capital growth prospects.

Surrenden Invest provides off market London property investment services to an international client base. Headquartered in central London, our consultants have an in-depth understanding of the investment market in the capital and are perfectly placed to source the best possible opportunities for investors. To view our latest selection of London investment property, please click here.

Sourcing off market property
Surrenden Invest unlocks exclusive off market property developments in London, meaning we’re able to offer high yielding investments in the city in high demand growth areas.The London property market is one of the most sought after real estate investment markets in the world. Surrenden Invest has access to stock with leading developers and house builders, offering exclusive off-market deal terms and maximising earning potential.

Residential property
Surrenden Invest is uniquely placed to offer investors access to residential property developments in high demand growth locations with the security and peace of mind that comes with working with well-established developers. We offer independent, transparent advice to our investors with the sole aim of maximising their returns in one of the most profitable residential property markets in the world.

Student property
As the UK’s fastest growing asset classes, we also advise that investors consider purpose-built high quality student properties in sought-after locations, particularly those that are in close proximity to London’s world-leading universities. Investing in student property in London can be a hugely profitable investment option and Surrenden Invest is on hand to help private investors capitalise on this growing market and negotiate the best terms on any deal size.

Speak to us about our latest property investments in London. Call our management team today on 0203 3726 499.

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Manchester is rapidly becoming an investment Mecca

By Surrenden Invest | February 4, 2015
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Property Investment in Manchester

Its economy is buoyant; its population is growing. Manchester is a sprawling city that’s only set for more expansion in the years to come, which means it presents exceptional opportunities for private property investors.

If you’re looking for high capital growth in key up-and-coming locations, Surrenden Invest will deliver. We bring our investors exclusive, off market property investments in Manchester that generate high yields and excellent capital growth. Our end-to-end property management services in Manchester allow you to leave the everyday running of your investment portfolio in the hands of our experienced team.

To view our latest selection of Manchester investment property, please click here.

Speacialising in off market property
Our strong relationships with local developers and house builders ensure we’re able to source the newest off market property investments Manchester has to offer. Our investors benefit from exclusive opportunities that are simply not available elsewhere; they are guided into strong investments by our expert consultants, who offer transparent, accurate advice that enables investors to make well-informed decisions, regardless of their previous investment experience.

Residential property
Residential properties are in high demand in virtually all regions of the city as developers strive to meet the needs of a growing population. Surrenden Invest will find a residential investment property in Manchester to suit the needs of any international investor. Calling upon our extensive knowledge of the local market, we will source and manage residential property investments that are going to bring you high yields and widen your earning potential.

Speak to us about our latest property investments in Manchester. Call our management team today on 0203 3726 499.

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