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Will house prices go down in 2022?

Will house prices go down in 2022?

In the property industry, a New Year brings the age-old question of whether house prices will go down over the next 12 months and whether now is a good time to buy a house. To understand what might happen in the housing market in 2022, it is important to reflect on where things stand today. With the average property price reaching record highs, Surrenden Invest looks at what factors will shape the market over the next year.

£268,349

The average cost of buying a property in the UK stands at £268,349

6.90%

On average, house prices increased by 6.9% in the year to October

+10.6%

Northern Powerhouse cities continued to record the strongest growth rates

+4.80%

Property hotspot Newcastle recorded a +4.8% rise in the year to October 2021

What happened in 2021?

Across the board, data analysed by the industry’s biggest names have shown that UK property prices increased at a double-digit pace throughout 2021.
The latest UK House Price Index – released in December – has reported that the average cost of buying a property in the UK stands at £268,349. This figure is 10.3% higher than the average values a year earlier. Data released by the mainstream lender, Nationwide, support this growth rate, recording the average cost of buying a property at £252,687 – up 10% since November 2020.
The vast nature of the UK’s property market means that indexes will differ based on the composition of the data available to the body at the time of release. Therefore, buyers keeping a close eye on the nation’s property market should delve deeper into headline stats by looking at the regional performance of the property market they are considering for investment in 2022.
Those looking for an in-depth analysis of property prices on a city and regional level are likely to be reassured by the most recent Zoopla UK House Price index, which compares the performance of 20 UK cities. The most recent index reported that, on average, house prices increased by 6.9% in the year to October, with the rate of growth starting to ease following the end of the government’s Stamp Duty Holiday incentive in September.
Despite the slowdown, the report emphasised that the average rate of growth recorded over the last three months is significantly higher than at any time since 2014, helping to highlight the current strength of the market.
Overall, the UK’s largest regional cities significantly outpaced the 2.4% rate of house price growth in London. Northern Powerhouse cities continued to record the strongest growth rates with a +10.6% climb recorded in Liverpool, +8.7% in Manchester, and +7.9% in Sheffield. Even at the lower end of the index, regional property hotspot Newcastle recorded a +4.8% rise in the year to October 2021.
Elsewhere, the UK’s Second City Birmingham recorded an impressive +6.3% growth rate.

Commenting on the overall performance of the marketing during 2021, Jonathan Stephens, Managing Director of Surrenden Invest, said:

“Over the last 12 months, property prices across the nation have continued to rise steadily, and while London’s market has slowed to a certain extent, regional markets have gone from strength-to-strength. This is a trend that we expect will continue throughout 2022.”

What’s happened since the pandemic?

The UK’s property market experienced significant changes throughout the pandemic. From the complete closure of the market during the first national lockdown in March 2020, where the number of properties sold reached the lowest levels since records began, to the introduction of a Stamp Duty Holiday and record-low interest rates, the industry has undoubtedly displayed its resilience during the pandemic.
It is safe to say that Covid-19 dramatically altered everyday life, with many people experiencing a shift in the amount of time spent in the office and commuting to work.
Naturally, this pattern has been reflected across the property market, with homebuyer and renter habits changing over the last 18 months. According to a survey about what people want from property conducted by MFS, a garden or outdoor space is the number one feature for homebuyers in 2021. Square footage is ranked second and access to fast broadband and mobile connectivity third.
The survey, undertaken by 2,000 UK adults searching for a residential property, also highlighted the need for space. The number of Londoners who moved out of the capital and into surrounding areas boosted countryside property sales by £5 million.
However, it is not just the sales market that has undergone changes caused by Covid-19. The easing of lockdown restrictions in the summer and a return to city centre living pushed rental growth to the highest level in 13 years in Q3 2021.
The latest Hometrack Rental Market Report has revealed that average UK rents increased by 4.6% in the year to September. The resumption of a more ‘normal’ life and the commencement of a new academic year have been attributed to a sharp rise in the cost of renting.
Despite the upheaval caused by the pandemic, the demand for property across the country has remained strong. Those considering investing in the sector should pay close attention to trends on the market to secure the best potential gains.

Housing market predictions 2022

It seems obvious, but, at this point, it is worth highlighting the importance of differentiating between the easing of house price growth and values decreasing. For those looking to buy property in 2022, it is doubtful that property prices will dramatically decrease over the next 12 months. Instead, buyers will find that the rate at which values will climb will ease.
Throughout 2020 and 2021, buyers rushed to the market to maximise the government’s Stamp Duty Land Tax (SDLT) savings. As a result, in 2021, it is thought that 1.5 million property transactions will take place. However, the time-sensitive incentive has ended, and transactions are expected to fall to 1.2 million in 2022, which is more in line with the 5-year average.
The window to complete property purchasing during the SDLT naturally created a competitive market. Propertymark’s Housing Market Report reported an average of 19 buyers for every available property.
However, with the urgency to complete now over, property prices are set to continue to rise throughout 2022, with the rate of growth expected to ease. According to Savills, the UK’s mainstream housing market can expect a +3.5% growth rate throughout 2022, citing a shortage of available homes to push prices upward.
Across the property sector, forecasts generally align with this growth rate, with Zoopla expecting a +3% increase, whereas JLL (+4.5%) and Rightmove (+5%) are slightly more optimistic.
In terms of demand, market experts at Zoopla expect that buyer demand will remain strong moving into the new year, with the sector beginning to ‘normalise in 2022’. The property portal cites low supply levels to underpin prices across the next 12 months.
Based on market predictions, it is unlikely that house prices will go down in 2022. Instead, those searching for a property will be comforted by an easing of price rises; however, with a high demand for housing, buyers will likely need to act fast to secure their investment.

£1,058

The average cost of renting is £1,058 per calendar month

0.25%

Bank of England’s decision to raise interest rates from 0.01% to 0.25%

300,000

Construction of new homes well under the government’s target of 300,000 new builds per year

18.80%

Savills predicts a total 5-year price growth of 18.8% in the North West and Yorkshire and Humber

Rental market predictions 2022

For those entering the buy to let property market in 2022, UK property hotspots will continue to benefit from a bounce-back driven by a desire for life to return to ‘normal’. Currently, the average cost of renting is £1,058 per calendar month, and according to JLL, the average rent will increase by 2.5% throughout 2022.
The most recent report from HomeLet has praised the UK’s Private Rented Sector (PRS) as ‘exceptionally resilient’ throughout 2021 and, when it comes to demand, a lack of available new rental properties compared to pre-pandemic levels will continue to push rents upwards in 2022.
For buy-to-let investors, the UK’s property market is a robust choice for rising rental returns and capital gains, making it an excellent choice for investment.

Is now a good time to buy a property?

When it comes to buying a property for personal use or as an investment, it is important to understand your motivations and what’s driving your decision to buy.
Without establishing goals, property investors will not be able to track the performance of their portfolios. Likewise, those buying their primary residence should also consider the reasons behind their purchase. For example, how long are you likely to stay in the property? Upcoming changes to your circumstances and whether you want to buy a new-build or something that requires a bit of work and will therefore require additional funds.
Once you have a clear set of goals, buyers must establish their financial obligations. Securing the best mortgage rate is one practical option to ensure that purchasers get the best deal for their purchase. Despite the Bank of England’s decision to raise interest rates from 0.01% to 0.25% in December 2021, the borrowing cost remains exceptionally low compared to the last five or even ten years.
To determine how much you can borrow, here is a handy mortgage calculator to help investors get an idea of their initial outgoings. Investing in off-plan property through a reputable developer or property consultancy like Surrenden Invest is another way for buyers to reduce the initial outgoings. In addition, buyers purchasing during the off-plan stage are often rewarded with an early investor discount, benefiting from any uplifts in value across the local property market during construction.
For homeowners and investors who are willing to wait for a property to complete, off-plan property investment can offer some of the strongest capital growth potential. Buyers wondering whether now is a good time to buy a property should also consider the cost of waiting for the ‘perfect’ time to invest. With house prices showing no signs of slowing down and the potential for interest rates to climb over the next few years, buyers who act now will benefit from rising prices expected throughout 2022 and beyond.

Positive 5-year forecast

With the construction of new homes well under the government’s target of 300,000 new builds per year, JLL predicts that there will be a shortfall of 500,000 properties from the 1.5 million needed over the next five years. An overall lack of housing across the country will undoubtedly lead to rising prices. JLL expects house prices to climb by 20% between now and 2026, meaning that property investors who enter the market at today’s price could see the value of their assets rise in a relatively short period.
Property investors considering where to invest for the best capital growth potential will continue to benefit from the north-south divide in mainstream house prices. Savills predicts a total 5-year price growth of 18.8% in the North West and Yorkshire and Humber, with these two regions outperforming the 5.6% and 10.4% expected in London and the South East, respectively.

Investing in property in 2022

It is difficult for property investors and homebuyers to ignore the fundamental demographic and economic changes supporting house price growth over the next five years. Buyers looking to invest in property in 2022 are likely to benefit from a real estate consultancy like Surrenden Invest. With over 2,000 properties sold in seven years, our team of professionals is on hand to discuss your investment needs and match our available properties with your financial goals.

For more information about buy to let property investment, contact Surrenden Invest today.

Introducing The Silversmiths, Birmingham: A Jewel in Jewellery Quarter’s Crown

Introducing The Silversmiths, Birmingham: A Jewel in Jewellery Quarter’s Crown

Surrenden Invest is pleased to present a unique opportunity for investors to own a remarkable Grade ΙΙ listed apartment in Birmingham city centre. Located in the most sought-after corner of central Birmingham, The Silversmiths presents buyers with the chance to own a slice of history and benefit from the rising demand for a rental property in the city’s affluent Jewellery Quarter.
With construction already underway, this beautifully executed period conversion will be delivered by NVSM – a Developer with an extensive track record in delivering high-quality restorations of listed buildings in Birmingham and London. With an exclusive allocation of 10 apartments within The Silversmiths development, Surrenden Invest has a range of units available within this historical buy-to-let investment.
Due to demand, four apartments have been reserved and taken off the market by clients searching for a property of this calibre in Birmingham city centre.  Investors looking for a top-performing property investment with a historical-wow factor and an exceptional kerbside appeal should act now to ensure they don’t miss out on this rare opportunity to invest.

Presenting The Silversmiths Apartments

The Silversmiths is a boutique development of 34 luxury, two, and three-bedroom apartments spanning three floors. Tenants will be offered a peaceful slice of city-centre living, overlooking a residence-only courtyard or a quiet residential street.
Unlike other new-builds available in Birmingham city centre, the Developer will focus on amplifying the property’s existing period features by delivering open-plan interiors that include beautiful original wood beams and exposed brick walls.
Sold on a long leasehold agreement, buyers searching for a truly unique property in one of the UK’s best-performing locations for buy-to-let returns need to look no further than The Silversmiths.
OWN A SLICE OF HISTORY
Over the last 10 years, the UK’s Private Rented Sector (PRS) has played a critical role for investors and tenants alike, delivering new-build properties in locations with rising demand for rental property. Yet despite increasing levels of construction, it is safe to stay that the ability for investors to own a period property in the heart of a UK property hotspot is incredibly rare.
Dating back to 1865, The Silversmiths building was created during the reign of Queen Victoria and has seen six monarchs, the start and end of the industrial revolution, plus it remained standing throughout WW1 and WW2. Today, the thoughtful renovation will bring the building back to its former glory, making The Silversmiths development a unique opportunity for investors.

1.10m

Birmingham is the largest city outside of London, boasting a city centre population of 1.1 million people.

163%

Between 2002 and 2015, the Birmingham City Centre population grew by 163%.

16.5%

property values are set to climb at a markedly fast pace in Birmingham by 16.5% by 2024.

15.9%

Over the next few years the cost of renting in Birmingham forecast to rise by 15.9% by 2024.

INVESTING IN A UK PROPERTY HOTSPOT
Widely considered the UK’s Second City, Birmingham is the largest city outside of London, boasting a city centre population of 1.1 million people and 2.6 million across the wider metropolitan area.
Between 2002 and 2015, the Birmingham City Centre population grew by 163%, making it one of the fastest-growing populations across the country. Moreover, with the introduction of various multibillion-pound regeneration projects and the introduction of HS2 rail, the city’s central population is set to rise rapidly, creating an ideal environment for buy-to-let investors.
Potential rental income is one of the key factors buy-to-let property investors consider when evaluating an investment, so it will be encouraging news to many that average rents across Birmingham are rising.
The latest data from JLL has offered an insight into the rate of growth in rental values over the next few years, with the cost of renting in Birmingham forecast to rise by 15.9% by 2024. The regional picture also shows that property values are set to climb at a markedly fast pace in Birmingham, with property prices tipped to rise by 16.5% by 2024.
Buyers considering The Silversmiths investment are likely to witness the value of their off-plan apartment rising throughout the construction period. With completion due in 2024, early investors can benefit from the potential to secure strong capital gains and higher rental returns.
INVESTING IN BIRMINGHAM’S JEWELLERY QUARTER
Located in the North-West of the City, the Jewellery Quarter is the ‘most walkable’ residential district and is more than just a hub for jewellery makers. This already prestigious corner of the city is undergoing a rapid transformation and has welcomed multimillion-pound commercial and residential projects, and it is on track to benefit from the planned Metro Tram extension.
With a high standard of living on offer plus a steady demand for rental accommodation, when it comes to property investment in Birmingham, The Silversmiths really is the jewel in the Jewellery Quarter’s crown.
WHY INVEST IN THE SILVERSMITHS?
Alongside securing a reliable rental return and the potential to sell the property at a later date for a profit, there are plenty of reasons for buy-to let-investors to consider The Silversmiths. Seasoned property investors will be fully aware of the time it takes to manage a successful buy-to-let asset, which is why an experienced Management Company will fully manage apartments within The Silversmiths upon completion.
What’s more, apartments within The Silversmiths will also include a 10-year building warranty upon completion, which places an obligation on the Developer to repair any defects that aren’t caused by general wear and tear or maintenance issues. This reassurance offers valuable peace of mind for investors who want to feel confident their asset has been completed to the highest standard and will retain its value should they wish to sell at a later date.
Finally, when it comes to offloading the property, investors are likely to find the demand for a newly renovated Grade ΙΙ listed apartment in Birmingham city centre a highly attractive asset on the local market. The rarity of a period conversion that has been completed to such a high standard will naturally be a highly-desirable choice on the local property market.
Commenting on the development, Jonathan Stephens, Managing Director of Surrenden Invest, said:

“We have admired the Developer’s previous projects and the remarkable attention to detail that has gone into the thoughtful renovations which has persevered some of the UK’s oldest buildings whilst delivering functional spaces that are perfect for modern living. The quality of the end-product has not gone unnoticed on the property market, with their latest project achieving 100% occupancy rate and delivering investors exceptional rental yields.

“The whole team at Surrenden Invest is delighted to have the opportunity to market ten truly unique apartments within The Silversmiths development. There is already a buzz around the project, and we have no doubt that these remarkable buy-to-let properties will be snapped up by our clients quickly.”

This selection of images was taken at the Developer’s latest project, the award-winning Bishton Fletcher Building. Located a stone’s throw away from The Silversmiths, this newly completed development illustrates the high specification of the Developer’s renovations of a historical building in Birmingham. The images will help paint a picture of what investors can expect from purchasing an apartment within The Silversmiths. What’s more, despite the pandemic, the development is fully sold out, with 100% occupancy level achieved.
ONLY SIX APARTMENTS REMAIN
With 40% of our available allocation already reserved by clients who have been searching for a period renovation property in Birmingham’s city centre, we highly expect the remaining six apartments to sell quickly.

For more information about The Silversmiths property, contact Surrenden Invest and a member of our knowledgeable team will be happy to send you the development brochure and the latest availability.

Best Places to Invest in UK Property 2022 | Buy to Let Market Overview

Best Places to Invest in UK Property 2022 | Buy to Let Market Overview

Over the past five years, the UK government has introduced several measures that have impacted the buy to let market, including reduced tax relief available to property investors and second-home buyers. On the surface, conditions like these might have made buy to let property more complicated for some, however the fundamentals of the market – such as demand for rental property – remained strong.
According to the Office for National Statistics, the number of households in the Private Rented Sector (PRS) increased from 2.8 million in 2007 to 4.5 million today. And with projections suggesting that 1.2 million new households will be created over the next five years, demand for PRS property is set to continue to grow.
To help investors capitalise on the rising demand for rental property, Surrenden Invest will outline the best places to invest in UK property in 2022 in this feature, by highlighting where is expected to provide investors with the best rental yields and the strongest capital growth potential.

Building on a positive 2021

Despite the pandemic, overall, 2021 proved an extremely positive year for property investors, with figures published throughout the year showing rising rental yields and steady house price growth.
As far as values are concerned, the latest UK House Price Index for August 2021(released in October) showed that average asking prices of sales agreed in England were 3.2% higher in August than in July 2021. Over the course of the year, prices increased by 9.8% and the average property value reached £280,921.
Savills also published separate data predicting UK house price growth climb by an average of 3.5% in 2022, with mainstream UK house prices expected to rise 13.1% by 2026.
Since the country reopened, the rebound in housing market activity is an encouraging trend, particularly for investors looking for signs that UK property will continue to provide opportunities for capital gains in the coming years. 2021 was also an excellent year for rental properties, with demand rising across the UK – especially since the country started to open up following the various lockdown measures introduced by the government.
Currently, rental prices in the UK average £1,061 per calendar month (pcm), excluding London from the equation, and the average rent is £891pcm. However, despite the pandemic, rental prices have climbed by 7.5% across the UK as a whole over the last 12-months.
Those considering investing in UK property should certainly see the last year as a triumph for the property market. Even in the face of challenging economic conditions, the property sector continues to show its resilience and offers investors an excellent chance of achieving good returns in the coming years.
But where should investors buy to achieve the best rental returns in 2022?

3.20%

Average asking prices of sales agreed in England were 3.2% higher in August than in July 2021

£280,921

Over the course of the year, prices increased by 9.8% and the average property value reached £280,921

£1,061

Rental prices in the UK average £1,061 per calendar month (pcm) excluding London

7.5%+

Despite the pandemic, rental prices have climbed by 7.5% across the UK as a whole over the last 12-months

Best UK buy to let areas for 2022

To help property investors make an informed decision, Surrenden Invest has outlined the best buy to let areas for 2022. As mentioned earlier in this feature, when it comes to capital growth potential, the UK average in 2022 stands at 3.5%, with the growth rate in London lagging behind at just 2%.
According to Savills, the north-south divide will continue to close over the next five years, seeing house price growth excel across the North of England and the Midlands, whereas values in the South and South East will rise – albeit at a slower pace.
The potential for price growth looks particularly positive for Northern Powerhouse cities like Manchester and Liverpool.  The wider North West region is expected to see values climb by 4.5% in 2022 and by 18.8% in the five years 2026. Interestingly, Savills expects the same rate of growth across Yorkshire and the Humber.
Location
2022
2022-2026
(5-year cumulative)
North West
4.5%
18.8%
Yorkshire & the Humber
4.5%
18.8%
North East
4%
17.6%
East Midlands
4%
15.9%
West Midlands
4%
15.9%
South West
3.5%
13.1%
South East
3%
10.4%
East of England
3%
10.4%
London
2%
5.6%
UK
3.5%
13.1%
Source: Savills Research.
Investors looking towards regional property hotspots including Birmingham, Leeds, and Newcastle can also expect to secure higher than average returns across 2022 and over the next five years, with values in the North East expected to increase 17.6% by 2026 and 15.9% in the West Midlands. When compared to the UK average of 13.1%, it is clear that regional property hotspots are most likely to deliver property investors with the best capital gains potential.

Best rental yields

Throughout 2021, the UK’s best buy to let areas were regional cities. Rightmove cited the effects of ”boomerang” tenants – those going back to cities following the easing of lockdown restrictions – attributing the rising rental costs.
A report from Rightmove revealed that demand for rental accommodation helped push rental growth in some regions to double-digit increases year-on-year, with rents climbing by 10.3% in the East Midlands and by 10% North West.
For buy to let investors, positive rental growth can be seen across regional rental hotspots, with average rents climbing by 8.4% in the East of England, 8% in Yorkshire and the Humber, and 6.9% in the West Midlands. When compared to London, where rents increased by 2.7% year on year, regional property investments are most likely to deliver the most robust return on investment over the coming years.
When it comes to demand, Birmingham and the West Midlands saw the highest tenant interest, with the amount of new prospective renters reaching a record high in September, according to Propertymark.
Buyers looking towards future demand should consider tenants affordability. With regional cities already attracting higher levels of students and young professionals than London, prime locations with younger populations, including Manchester, Liverpool, Leeds and Birmingham, offer strong rental yield growth over the next five years.

10.3%

Rents climbing by 10.3% in the East Midlands and by 10% North West.

16.5%

Reports expect rental costs to rise 16.5% by 2024 in Manchester, 15.9% in Birmingham, 14.8% in Liverpool, and 14.2% in Leeds.

8.4%

Positive rental growth can be seen across regional rental hotspots, with average rents climbing by 8.4% in the East of England

As JLL outlines in its 2020 UK City Centre Forecasts, “Manchester is forecast to see both the highest sales price and rental growth of any UK city over the next five years.” The report expects rental costs to rise 16.5% by 2024 (5-year cumulative) in Manchester, 15.9% in Birmingham, 14.8% in Liverpool, and 14.2% in Leeds.
Investors considering Northern Powerhouse cities may achieve some of the highest rental growth available on the market.
Encouragingly, the demand for new, high-quality rental properties continues to remain strong across the country for property investors and tenants alike. As a result, there is a steady flow of tenants who require properties in locations that offer a good quality of life, excellent transport links, and access to local amenities.
If you are looking to maximise returns from your buy to let property in 2022, keeping an eye on market trends, including tenant demand and regional growth, will likely steer you in the right direction.

Skip London, but consider London commuter belt property

Over the last 12 months, the regions have outpaced London in new sales agreed, house price and rental growth, and it seems likely that this will continue over the next few years.
The slight ”cooling” of London’s property market will be of no surprise, with affordability in the capital a sticking point for most residents and investors. However, with attractive employment prospects in London and the pull of the ”big city lifestyle”, the traditional ”commuter belt” located just outside London is once again set to provide a strong attraction for investors next year, with areas with fast and reliable rail connections offering some of the best opportunities.
Those considering the London commuter belt property market should consider areas that offer travel times under 40 minutes by train like High Wycombe. Recently named the location with the ”most reliable” commute to London, High Wycombe offers a fast 35-minute train and is ranked in the top 10 family-friendly commuter towns for London workers.
Property values in the picturesque market town have increased by 8% over the last 12 months, with the average prices of property standing at £374,442 – significantly lower than the London average of £649,941.
As city workers start to return to offices, many companies have moved to a hybrid model regarding location flexibility. Buy to let investors who take note of this trend will be able to capitalise on the demand for rental properties within an easy commute from London.

How to invest in buy to let property in 2022?

Building a diverse portfolio can offer some highly attractive benefits for property investors. Location diversification is a popular strategy for investors who can broaden their options to ensure maximum benefit from various trends and fluctuations in the market.
Cities including Birmingham, Liverpool, Leeds, Manchester and Newcastle will prove attractive options for buy to let property investment in 2022 and beyond, offering investors the opportunity to secure reliable rental returns and capital growth potential. Plus, with the government’s commitment to level up the country’s economy, investors stand to benefit from long-term infrastructure projects that include HS2.
For those considering entering the property market, there are several reasons for investors to feel confident about the fundamentals driving buy to let sector.

To discover the best place to invest in UK property in 2022 for your portfolio, contact Surrenden Invest to discuss your requirements and to view our latest range of investments.

Growth location focus: Birmingham

Growth location focus: Birmingham

The UK’s population is booming and one result of this is a severe shortage of housing in many areas. Coupled with a shift away from home ownership and towards private renting, particularly in urban areas, this has created a number of key rental market growth locations. Birmingham is a prime example.

“Birmingham has the ideal combination of factors to make it a buy to let property UK investment hotspot. The city’s population is growing rapidly and the rate of house building has lagged behind the level of demand for new homes for many years. At the same time, urban regeneration work in the city centre is creating a number of sought-after locations, with renters wanting to be close to the heart of the action.”

Jonathan Stephens, MD, Surrenden Invest
According to Surrenden Invest’s report on National Growth Locations, Birmingham’s ambitious, large-scale regeneration projects, such as the £1.5 billion Birmingham Smithfield redevelopment, are drawing renters to the city centre in their droves. Meanwhile, the city’s established economic credentials (centred around manufacturing, retail, tourism and financial services and, more recently, creative and digital/tech businesses) are creating plenty of employment opportunities.
The West Midlands as a whole has a bright outlook. Savills has projected compound growth of 19.3% over the five years to 2023 for the area’s house prices. Birmingham is the region’s shining star. In fact, it the city has outshone many other urban areas in the UK over the past few years, with prices there rising faster than in any other UK city since the UK’s EU referendum in 2016.
Birmingham’s population is growing hand in hand with its house prices. The city is known for its youthful population, with the Birmingham Economic Review 2017 naming it the youngest major city in Europe. Nearly 40% of the population are under the age of 25. There were some 1,147,300 residents in 2018, according to the Office for National Statistics. That figure is set to rise to 1,313,300 by 2041 – growth of 14.5%.

“Birmingham’s economic credentials are backed by a strong cultural offering. This is a city with a vast amount to offer its young population, which is why it is enjoying such sustained popularity, particularly in terms of city centre living. Successful housing developments are those which meet not just the needs but also the aspirations of those young people.”

Jonathan Stephens, MD, Surrenden Invest
No.76 Holloway Head is one such site. The development enjoys an outstanding city centre location, just a couple of hundred metres from Birmingham’s upscale Mailbox and within two minutes of Birmingham New Street Station, Grand Central and the Bullring – the ideal spot from which to enjoy a luxurious urban lifestyle. The one- and two-bedroom homes, with their spacious, elegant interiors, provide the perfect upscale residence for ambitious young professionals looking to make the most of life in prime central Birmingham.

For regular updates on investing in Birmingham and other UK regional cities, be sure to follow the Surrenden Invest team on social media.

First Time Buyers, Brexit and Boris Johnson

First Time Buyers, Brexit and Boris Johnson

An influx of deals agreed over the last several months will cause a substantial rise in House prices over the summer – according to new data from property experts Reallymoving and Rightmove.

Fuelled by past frustrations of political indecision, home buyers see the nearing deadline of Brexit as an essential milestone for establishing stability and future prosperity in the market. Investors encouraged by the light at the end of the tunnel now also see an opportunity to capitalise on exceptional value through buying in the last remaining months ahead of Brexit.
House pricing indexes forecast growth of upwards of 1.2% in August, followed by growth of 3.8% in September – marking a crucial turning point in the recovery of what has otherwise been a tough couple of years in the property market. (Reallymoving)
This Summer is also set to see renewed interest and appetite from overseas buyers with the promise of lower stamp duty and purchasing costs for home buyers and investors alike. The introduction of increased Stamp Duty in 2014 was arguably the leading driver in the 20% decline in property prices in areas of Central London in the following year; questions now linger as to whether the introduction of lower Stamp Duty will spark an immediate correction in house values and send prices soaring.
With the prospect of Boris Johnson in No.10 looking more likely than ever, Johnson’s condemnation of high taxation appears to be well received with investors drawn to the Country who have in the past been unmotivated by unattractive costs associated with investment.

“The spring market was more robust than expected and this has prompted positive growth through the summer, particularly for deals agreed in May which are translating to sales in July.”

Jonathan Stephens, MD, Surrenden Invest
A plan to cut stamp duty on home purchases in Britain may just be the boost needed by the slumping London property market and give first time buyers the opportunity to get on the property ladder across the UK.

“We have seen a spike in interest in commuter belt locations around the UK’s largest cities, London, Birmingham, Manchester and Newcastle. With high sales in growth location sites such as Gerrards Cross, Luton and Digbeth. There is huge pent-up demand in the UK property market amidst the political unrest if the UK is able to agree a deal with the EU we could see a rush of properties hitting the market in the late autumn along with a surge in buyer demand..”

Jonathan Stephens, MD, Surrenden Invest

 

For regular updates on Brexit and Property Investment in key UK regional cities, follow the Surrenden Invest team on social media.

Business snapshot – let’s take a look at the Birmingham commuter belt

Business snapshot – let’s take a look at Dudley

The Metropolitan Borough of Dudley, to the North West of Birmingham, is a popular home for families looking to enjoy the perfect blend of suburban life and access to green space, while still enjoying all the economic opportunities that a thriving business environment can provide. The borough is home to over 100 business parks, making it a key player in the Black Country economy.

The power of a business park to support regeneration in an area is significant. Brierly Hill’s Waterfront Business Park is an excellent example. Home to over 20 companies, it offers a wide range of commercial properties to companies looking for well-designed and well-connected premises. Not only that, but those connections are shortly due to get a whole lot better, with Brierly Hill directly benefitting from the £449 million extension to the West Midlands Metro tram line.
Further regeneration work is also taking shape in the local area. Just two minutes from the site of the new Brierly Hill tram stop (due for completion by 2023) is Oak Court. The stylish apartments are largely one-bedroom homes, in line with current demand for rental homes in the local area. Designed to serve both the Dudley Borough and Birmingham rental markets, the apartments will offer spacious homes designed to meet the needs of professional tenants looking to enjoy a contemporary suburban lifestyle.

Oak Court is a particularly interesting development as investors have a chance to be involved in Brierly Hill at a very significant phase in the town’s history. The tramline extension, which will provide a rapid connection to central Birmingham, is opening up regeneration opportunities like never before. Coupled with the Borough of Dudley’s focus on business and economic opportunities, this is a location that will be of important regional significance over the coming decade and beyond, particularly for those with an interest in buy to let property UK prospects.”

Jonathan Stephens, MD, Surrenden Invest
Home to just shy of 320,000 people, the Metropolitan Borough of Dudley certainly punches above its weight when it comes to business opportunities. And with renters increasingly finding themselves priced out of central Birmingham, the borough is ideally placed to capitalise on the potential of its housing prospects as well.
Oak Court is ideally placed to benefit from all of these factors. It is situated within the heart of a £1 billion Enterprise Zone and is adjacent to the new £100 million Merry Hill Shopping Centre. Available from £82,000, homes at Oak Court offer rental yields of 7% with a full management programme in place. A short build time means that they will be ready for occupation from winter 2019.

To stay abreast of the latest developments in Brierly Hill and Dudley, follow the Surrenden Invest team on social media.

New Rental Market Snapshot keeps investors up to speed

New Rental Market Snapshot keeps investors up to speed

Here at Surrenden Invest we do all we can to make our property investment company stand out from the crowd. Part of that includes sharing the knowledge and market insights that we have with our community of investors. We believe that knowledge is a powerful thing and is essential in choosing the right investment opportunities at the right time. That’s why we’ve launched our Rental Market Snapshot Guide

“Whether you want an overview of the UK rental market as a whole or a concise, detailed look at some of the country’s leading cities, the Rental Market Snapshot is the ideal investment companion. Making money from buy to let property UK opportunities is all about achieving strong yields as well as the potential for healthy capital growth. Surrenden Invest delivers a range of resources to support this.”

Jonathan Stephens, MD, Surrenden Invest
The data-driven Rental Market Snapshot considers not just current rental prices in each of the major cities it covers (Birmingham, Manchester, London, Liverpool and Newcastle) but also a range of other market performance metrics. These include average tenancy lengths and void periods, as well as factors such as what proportion of renters end their tenancies early. All of these can impact on the rate of yield that buy to let investors can expect.
Wider market drivers such as the kind of properties that renters are seeking are also considered, as well as the growing relevance of the private rented sector as a whole.

“The UK rental market is a huge topic. What we’ve done with the Rental Market Snapshot is to capture the essence of the market as it stands today, while also exploring the historical factors that have led us to that point. We’ve looked forward was well as back, which is particularly important for investors who are currently looking at a range of cities for their next investment.”

Jonathan Stephens, MD, Surrenden Invest
Birmingham is one of the most exciting cities in the UK right now when it comes to buy to let investment. Surrenden Invest has been highly active there in recent years. Its latest – and most impressive – Birmingham development is No. 76 Holloway Head. The 34 luxurious apartments enjoy an outstanding B1 location, just two minutes from the Bullring, Grand Central and New Street Station. The swanky Mailbox retail destination, meanwhile, is almost on the doorstep. This ultra-prime location has been chosen in order to capitalise on the demand for true inner city living that’s at the heart of the action – one of the trends noted in the Rental Market Snapshot.

For regular updates on investing in the UK buy to let market, be sure to follow the Surrenden Invest team on social media.

Birmingham Is Being Recognised as the ‘New’ London

Birmingham Is Being Recognised as the ‘New’ London

As a leading property investment company, Surrenden Invest has for years been espousing the virtues of the Birmingham property market. Now, with London house prices falling for the last two years in a row, increasing numbers of investors are looking to Birmingham to be the home of their UK property investment.

According to the latest Nationwide figures, London house prices dropped by 0.8% in the year to December 2018, following a 0.5% fall in 2017. By contrast, the Nationwide figures show a 2.9% increase in house prices for the West Midlands for the year to Q4 2018.
However, it isn’t just because London prices are falling that the Surrenden Invest team are such strong advocates for Birmingham. Indeed, the team was extolling the virtues of all things Brum long before London house prices began to wobble!
Birmingham Is Being Recognised as the ‘New’ London

“This simple fact is, Birmingham is an amazing city that has an awful lot going for it. Its business community is thriving and there’s a palpable energy when it comes to startups and entrepreneurs in the city. Birmingham’s residents demand the very best, whether that’s cultural attractions, retail outlets or the restaurant scene – and that’s precisely what the city delivers. This is a modern metropolis that is drawing in new residents by the tens of thousands, and for very good reasons.”

Jonathan Stephens, MD, Surrenden Invest

Birmingham Property Investment Booming

According to the latest Office for National Statistics population growth projections, Birmingham’s population is expected to increase by around 166,000 people between 2018 and 2041 – a growth rate of 14.5%. This is another factor driving the new wave of property investor interest in England’s ‘second city.’
Birmingham Is Being Recognised as the ‘New’ London
One of the leading developments that is rising to meet the surge in demand is the centrally located Westminster Works. Home to 220 beautiful, loft-style apartments, Westminster Works is offering investment from £168,000. The building’s specification and facilities are superb, as befits such a prestigious development in this exciting city.

“With Westminster Works, what we see is apartments and amenities that deliver a new style of urban living to Birmingham’s aspirational, dynamic young professionals. The lively Digbeth location is the perfect site for this leading development, while the impressive roof terrace is a feature of which every resident can feel proud.””

Jonathan Stephens, MD, Surrenden Invest

Birmingham Regeneration Will Benefit the Midlands Population

The yields on offer in Birmingham are another reason that attention is moving away from London. Westminster Works offers solid yields of 5.0% NET – something which many developments in London are either struggling or failing to do.
Then there is the overall impact that regeneration work is having on the city. Grand Central’s opening in 2015 marked a step change in the way that many people thought about Birmingham. Now, the £500 million Birmingham Smithfield masterplan, located just behind Westminster Works, is taking regeneration to the next level. Head of city centre development and planning, Richard Cowell, has hailed it as, “an example to international cities,” with residents set to benefit not just from a new market area but from a museum, hotel, culture centres, leisure facilities and a 24-hour gourmet foodie hangout.

“This is the new face of Birmingham – and it’s leaving London looking old and tired. When it comes to UK property investment, Birmingham is the place to be.”

Jonathan Stephens, MD, Surrenden Invest

For regular updates on investing in Birmingham and other exciting UK regional cities, simply follow the Surrenden Invest team on social media.

The regional round-up – where will 2019’s housing hotspots be?

The regional round-up – where will 2019’s housing hotspots be?

We hear a lot about how the UK is in the midst of a housing crisis, and how the country is falling further and further behind each year in terms of delivering the number of homes that our population needs. Combined with the rapid rise in popularity of city centre living, this is creating pockets of extreme demand in some of the UK’s regional metropolises. With 2019 just around the corner, the Surrenden Invest team has done some number crunching (with a little help from our friends at the Office for National Statistics and Zoopla) to see which hotspots are worth keeping a close eye on over the year ahead.

Birmingham

2018 population: 1,147,300
2041 projected population: 1,313,300
Property price growth over past five years: 29.46%
Housing development to watch: Westminster Works

With a 14.5% population increase on the cards between now and 2041, Birmingham tops the list of 2019 hotspots. The city has a young population compared to the country as a whole, with its five university campuses attracting young people with a thirst for knowledge. The city has the sixth highest graduate retention rate of any UK city, and the third largest inflow of graduates with no prior connection to the city.
This 65,000-strong student talent pool provides Birmingham with a vast pipeline of future workers and entrepreneurs. It also means that stylish homes in city centre locations are, and will continue to be, in hot demand.

Manchester

2018 population: 553,500
2041 projected population: 631,500
Property price growth over past five years: 30.60%
Housing development to watch: Ancoats Gardens

Manchester is on track to experience a 14.1% population increase between 2018 and 2041, meaning it will be snapping at Birmingham’s heels in terms of growth. The city has already risen up the ranks in recent years, making it onto IBM’s list of top ten global destinations for foreign direct investment in 2017 (as part of the Manchester-Liverpool metropolitan region).
Manchester benefits from a steady influx of bright, enthusiastic young people. The city is second only to London in terms of its graduate returners (at 58%), as well as its inflow of graduates with no prior connection to the city. Businesses are doing much to harness this talent; Amazon, for example, chose Manchester as the site of its first Amazon Academy, running a series of programmes and events designed to help hundreds of small, local businesses. Future residential developments in the city centre will need to serve these entrepreneurial young professionals.

London

2018 population: 8,965,600
2041 projected population: 10,346,000
Property price growth over past five years: 32.36%
Housing development to watch: Brook House

London leads the UK in many respects, as a world-renowned centre for finance, business, education, tourism and more. Over the next 25 years or so, its population is projected to increase by 15.4%, driving demand for housing across the capital. From sleek, centrally located apartments to sprawling houses in the suburbs, London offers every kind of property imaginable, providing homes for workers from across the UK and the globe.
More than 300 languages are currently spoken in London’s schools, highlighting the diversity of the capital’s future workforce. The city attracts some of the best and brightest as a result of its vast range of employment opportunities and is home to a huge rental population. According to PWC, 60% of Londoners will rent their homes by 2025, as the city’s young (and not so young) professionals rent in ever greater numbers.

Liverpool

2018 population: 495,300
2041 projected population: 554,500
Property price growth over past five years: 24.67%
Housing development to watch: The Tannery

Liverpool is on track to experience a population increase of 12.0% between now and 2041, as the city continues to attract talented young people as a result of its thriving service sector, healthcare sector and knowledge economy. The city’s extensive cultural offering is also a draw, from its plentiful museums and art galleries to its excellent restaurants and lively music scene.
42% of Liverpool’s population is below the age of 30, compared with 37% nationally. This youthful population is driving forward Liverpool’s reputation as an innovative, entrepreneurial city. It is also one of the main forces behind the extensive regeneration that the city is experiencing, while the growing trend for city centre living is creating new hotspots close to key attractions and amenities.

Newcastle upon Tyne

2018 population: 297,400
2041 projected population: 318,100
Property price growth over past five years: 23.70%
Housing development to watch: Hadrian’s Tower

Newcastle’s city centre population has grown rapidly since the turn of the century. According to Centre for Cities, Newcastle city centre enjoyed population growth of 112% between 2002 and 2015. The massive jump in demand for city centre living is creating a hotbed of innovation with-in the housing sector, as developments seek to woo the bright young things who have flocked to the city for work and want prime accommodation in the heart of Newcastle.
With a superb social scene and a thriving urban renaissance well underway, Newcastle’s attractions to ambitious young professionals are plenty. It also has a rapidly growing student body as a result of its superb universities. Student numbers at Newcastle University have shot up by over 70% since 2000, while Northumbria University has enjoyed a student body increase in excess of 114% over the same period. With nearly 50,000 students in total, a full sixth of the city’s population is engaged in study, creating a uniquely youthful atmosphere as Newcastle grows its own talent for the future.

“Each of these cities has its own distinctive culture, which is drawing in young people who will ultimately contribute to the future success of that city. Those working in the housing sector need to respond accordingly, delivering high quality homes in central areas, in order to meet the demand that these young people are driving.”

Jonathan Stephens, MD, Surrenden Invest

For the latest news on property industry developments and the investment opportunities that they are creating, follow Surrenden Invest on social media.

Liverpool leads the UK for house price growth

Liverpool has just hit the headlines for leading the UK’s cities in terms of its house price growth. The Hometrack UK Cities House Price Index reported 7.5% inflation in Liverpool during the year to August 2018. For those working in the Liverpool property sector, the news comes as no surprise.

According to Hometrack, Liverpool’s average property price stood at £120,100 as at August 2018, against a UK average of £217,300. For those buying a main residence, that means 0% stamp duty. For those buying a second home (including investment properties) it means the lowest stamp duty rate, of 3%.
Factor in a 10-15% discount for off plan properties, and Liverpool really does have some exceptional investment deals available. Apartments at The Tannery, for example, are available for as little as £85,000, with anticipated yields of 6% net.
Despite the low entry price, the homes have been designed to offer outstanding quality, synonymous with the world’s greatest capital cities – those with which Liverpool has been rubbing shoulders on the IBM Global Location Trends report. Bright contemporary interiors are complemented by on-site facilities including a 24/7 concierge, secure underground parking, a spacious communal courtyard and a roof garden, all in the sought-after L3 postcode area.

“Liverpool has exceptionally strong credentials as a property investment destination. It has a booming city centre population, a thriving business community and a superb cultural offering. This combines to produce a high and sustained level of demand for decent, well-located rental homes, which in turn means that property investors can earn healthy yields, as well as enjoying the potential for impressive capital growth.”

Jonathan Stephens, MD, Surrenden Invest
As part of the Liverpool-Manchester metropolitan area, Liverpool was recently flagged up by IBM’s annual Global Location Trends report as being among the top ten cities in the world for foreign direct investment (FDI). The area pulled in the tenth highest number of FDI projects in 2017, according to the report, resulting in the creation of some 7,000 jobs.
Earlier this year, TripAdvisor also highlighted Liverpool as one of the best places in the world to visit. The city’s cultural offering was key to that decision. This year, it is offering a year-long programme of events, exhibitions, seasons and performances to mark the ten-year anniversary of Liverpool being crowned European Capital of Culture. One of the most impressive offerings is the Terracotta Warriors exhibition, which is drawing in visitors from around the UK and beyond.

“Liverpool is one of those rare cities that has it all. It’s a delightful blend of economic opportunities, cultural pursuits, a superb gastronomic scene, a lively sporting offering and a thriving property market. The city also enjoys property prices that are well below the average for the UK, which is another reason that it is such an exciting prospect for property investors.”

Jonathan Stephens, MD, Surrenden Invest

For regular updates on Liverpool and its property market, as well as other UK regional cities, you can follow the Surrenden Invest team on social media.