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Business booms as Manchester attracts global attention

The latest UK House Price Index has highlighted the North West as leading the UK in terms of monthly price rises, with an increase of 3.4%. The region’s economic powerhouse, Manchester, has done much to fuel the increase. Its thriving business environment is home to global head-quarters and creative businesses, with more than 2,000 foreign-owned firms in Greater Manchester, according to Invest in Manchester.

“Manchester is an exceptionally attractive environment for contemporary businesses. The city is home to a thriving professional and financial services sector, a dynamic media hub, a robust advanced manufacturing sector and much more. With 100,000 students at Greater Manchester’s universities, the pipeline of fresh talent is also considerable” 

Jonathan Stephens, MD, Surrenden Invest
Some of the largest companies based in Manchester include motor group Lookers and Essar Oil (UK). Other big companies with a significant presence in Manchester include those in the media sector – most notably the BBC and ITV. Then, of course, there are the city’s two world-famous football teams, with Manchester United topping Forbes’ 2018 list of the world’s most valuable teams.

“Manchester United takes the top spot, worth $4.12 billion, up from $3.69 billion last year. Manchester United generated the most revenue ($737 million) during the 2016-2017 season and nearly 50% more operating income ($254 million) than any other soccer team” 

Mike Ozanian, Sports Money Reporter, Forbes
The numbers speak for themselves when it comes to what drives companies to base themselves in Manchester. Operating costs there are up to 40% lower than those in London, according to Invest in Manchester. Meanwhile, Oxford Economics has stated that the level of job creation in Manchester could outpace that experienced by world-class cities including Berlin, Tokyo and Paris between 2015 and 2020.
Greater Manchester’s gross value added (GVA) stood at £62.8 billion in 2016, based on Office for National Statistics figures. Its economy grew by a staggering 42% in the decade to 2012, with job growth of 84% between 2002 and 2015, according to Centre for Cities (double the average rate for the North of England).
Ancoats Gardens Manchester
This diverse and thriving business community is driving up Manchester’s population, as workers flock to the city both from within the UK and from overseas. That, in turn is impacting on Manchester’s housing market in a number of ways. Not only is the city contributing to the North West leading the UK in terms of house price rises, but it is also showcasing some delightfully innovative new residential developments, such as Ancoats Gardens.
The 155 apartments at Ancoats Gardens will offer a superior standard of living in a prized location. With ceilings up to 2.7 metres high (some 0.5 metres higher than the average new build rental apartment) and floor to ceiling windows, the homes are spacious and full of light. On-site facilities are second to none, from the vast, split-level gym to the relaxing coffee lounge and attractive roof gardens.

“Manchester is in the privileged position of having superb business credentials, a global reputation and a talented and hard-working population. Add to that its myriad cultural attractions, leisure facilities and dining scene, and the city’s long-term prospects appear impressive indeed.” 

Jonathan Stephens, MD, Surrenden Invest

To find out more about Manchester’s evolution to global city status, check out our Manchester Then and Now brochure. For ongoing updates on all things Mancunian, as well as developments in other leading regional cities in the UK, you can follow Surrenden Invest on social media.

Newcastle – Talk of the toon

Nestled on the edge of the River Tyne, Newcastle has a distinctive skyline, a vibe all of its own and an accent that can’t help but charm. Those who’ve visited remark on the energy and vibrancy that the city somehow exudes.

Newcastle is one of my favourite cities to visit. From the warmth of the welcome to the inspiring architecture, it’s a real gem of a city. It’s such a pleasure to be working there to bring elegant, aspirational new homes to the city’s young professionals.” 

Jonathan Stephens, MD, Surrenden Invest
Jonathan is far from alone in having been captivated by Newcastle. Indeed, the city has been named by Rough Guides as the best place to visit in 2018 – not just in the UK, but in the world. And with an encyclopaedic knowledge of the globe, they should certainly know!
Rough Guides has flagged up Newcastle’s cultural credentials and superb gourmet scene, amongst other things. With restaurants voted among the top in the UK and an extensive craft beer scene, the city has much to offer those who enjoy outstanding culinary experiences.
It was no coincidence that Newcastle was chosen to host the first Great Exhibition of the North this year, which will be one of England’s largest cultural undertakings. The exhibition – and the city itself – is attracting hordes of tourists.
Newcastle is also known for attracting students in their droves, again in part due to the city’s superb lifestyle offering. The latest WhatUni student choice awards saw Newcastle University and Northumbria University placed second and fourth respectively in the ‘best city life’ category.
Rough Guides has also praised Newcastle for its architectural feats. A host of regeneration projects have given the city some cutting edge buildings that both honour its industrial past and create a distinctive, contemporary city that is proud to compete on the global stage.
Now, with the city’s tallest ever crane installed over the August bank holiday weekend, Newcastle’s skyline is on track to become even more exciting. The new residential building known as Hadrian’s Tower will be the tallest skyscraper in the city, delivering 162 capital quality residences backed by exceptional shared social spaces. The development will ensure the continuance of the architectural innovation for which this stunning city is becoming known around the world.

We love to share news of our projects, so if you want to stay up to date, why not follow us on social media to find out the latest exciting developments?

Spotlight on: The UK’s world-class cities

Regional cities are coming to the fore as hotspots for foreign direct investment (FDI). As the Surrenden Invest team has been waving the regional flag for some time, it’s great to see a host of official statistics adding weight to the value of these important destinations.

Recent reports have flagged up the Manchester-Liverpool metropolitan area as being among the top ten global cities for foreign direct investment (according to IBM) and the West Midlands as the leading UK region for rises in FDI projects and jobs created increase (based on Department for International Trade data).

“As we inch ever closer to a no deal Brexit, it’s easy to imagine the rest of Europe enjoying a quiet laugh at the UK’s expense. However, investors around the world are standing up to be counted and showing that they are interested in the UK for the long term, irrespective of Brexit. The pace of FDI reflects their confidence in the UK’s resilience and the growing importance of our regional cities.” 

Jonathan Stephens, MD, Surrenden Invest
Two studies have recently highlighted the importance of the UK to the global investment community – specifically, the importance of the UK’s regional cities. IBM’s 2017 Global Location Trends report looked at the world’s top cities for foreign direct investment (FDI). The annual report compares metropolitan areas based on equal labour catchment areas, for a truer comparison. Using that methodology, the Manchester-Liverpool metropolitan area ranked tenth in the world for FDI, placing it in the league of cities such as London, Paris, Singapore, Amsterdam and Dubai. It beat the likes of Barcelona, Toronto and Dublin to make it to the tenth spot.
According to IBM, Manchester and Liverpool jointly pulled in the tenth highest number of FDI projects of any global city in 2017. In doing so, they created some 7,000 jobs.

“It’s brilliant to see Manchester and Liverpool rubbing shoulders with the world’s top cities. Both have undergone extensive regeneration over the past couple of decades, positioning themselves to compete globally at this level. Manchester has established itself as the UK’s creative and media hub, while Liverpool’s health and life science sectors, and digital manufacturing industry, are truly world-class.” 

Jonathan Stephens, MD, Surrenden Invest
Ancoats Gardens Manchester
Foreign direct investment has not been limited to these sectors. Far from it. Both cities have enjoyed keen interest in their property sectors too, as the UK’s need for far more rental homes than it currently has available, has attracted overseas investors in their droves. Prime developments such as Manchester’s Ancoats Gardens, with its outstanding roof garden, vast 1,715 square foot gym and on-site coffee lounge, or the 381 high-spec homes at The Tannery in Liverpool, which are available from as little as £85,000, provide precisely the easy route into the UK property market that many foreign investors are seeking.
The Tannery, Liverpool
Further research by Foundation Home Loans has contributed to the sense of long-term security that investment in sectors such as buy-to-let in the UK brings with it. The company found that 18% of landlords plan to remain active in the sector indefinitely, versus just 6% who are considering exiting the buy-to-let market in the next year or two.

“What several of the latest research pieces are showing is that investors are looking to keep their money in the UK over the longer term, despite the continued blustering that we read daily about the Brexit debacle. Behind the scenes, investors are letting their funds speak for themselves.” 

Jonathan Stephens, MD, Surrenden Invest
The second piece of research to flag up the importance of one of the UK’s regional markets is from the Department for International Trade. The study found that the West Midlands was the only region in the UK to experience a rise in both FDI projects and the number of jobs recorded compared with a year previously. These increased by 13% and 43% respectively.
Westminster Works, Birmingham
At the core of the West Midlands, Birmingham is another regional city that is firmly on international (as well as domestic) investors’ maps. Again, the city’s property market in particular is charming investors from around the globe. Developments such as Westminster Works, in the city’s investment hotspot of Digbeth, offer a global standard of urban living that appeals to investors and tenants in equal measure.

“FDI in the UK is here to stay. The property market in particular has a compelling case for its long term viability. The UK can’t build houses fast enough to house its expanding population and is over a decade behind where it needs to be in terms of the number of homes. Coupled with a rise in the appeal of city centre living, this has created an excellent environment for investors from overseas who are looking to commit their funds to exciting regional cities.” 

Jonathan Stephens, MD, Surrenden Invest

For regular updates on investing in property in the UK, and details of exciting investment opportunities in our regional cities, be sure to follow the Surrenden Invest team on social media.

On your marks… get set… invest! New Ancoats Gardens investment details revealed!

We’re delighted to be able to share full details of our latest investment opportunity – Ancoats Gardens. Interest in the project is already huge, with people already interested in investing in multiple units – and that’s just from us releasing a few snippets of information on social media. Now, we can reveal all!

Ancoats Gardens is a development of 155 high-spec apartments in the salubrious Ancoats area of Manchester. Ranging in size from one to three bedrooms, the apartments have been designed with contemporary renters in mind, so deliver something that’s a cut above other residences in the area.
The homes are filled with light thanks to their huge windows. In addition, a beautiful sense of space is achieved as a result of maximum ceiling height of 2.7 metres, some 0.5 metres higher than you find in the average city centre rental apartment. These are aspirational homes for ambitious, professional tenants who want the most from their urban lifestyle.
The shared social spaces are also superb. The on-site gym is simply huge. With 1,715 square feet dedicated to this amenity, which is so large it is spread across two floors, tenants can benefit from the latest and greatest fitness machines and regimes, all within their building. The coffee lounge is also superb and provides the perfect spot for relaxing and catching up with friends. Of course, the exceptional roof garden is another ideal place to hang out and socialise!
Ancoats Gardens

Investment in Ancoats Gardens starts from £229,714 for a one-bedroom apartment, from £317,143 for a two-bed and from £488,571 for a three-bedroom home. Expected net yields are in the region of 6.0%. Investments are made on the grounds of an 850-year lease.

Ancoats Gardens has already grabbed the attention of national media outlets as a result of its superb design and excellent location, which provides renters with the delightful, almost villagey feel of Ancoats, while still being just five minutes from the main hustle and bustle of Manchester.
All of which means that we’re expecting these apartments to be snapped up in record time. As such, if Ancoats Gardens sounds like your kind of investment, it’s time to get in touch!

If you want to see Ancoats Gardens as well as read about it, why not take a virtual tour? Be sure to connect with the Surrenden Invest team on social media too, to keep abreast of the latest updates on this and other outstanding investment opportunities.

Ancoats – Manchester’s most exciting hotspot

The Surrenden Invest team is delighted to share news of our latest development – Ancoats Gardens in Manchester. While full details won’t be released until next week, we couldn’t help but share a few choice snippets about this exciting new investment opportunity.

Ancoats has everything going for it as a property investment hotspot. Market forces are combining to make it THE place to focus on in Manchester right now. When it came to our latest, innovative property launch in the city, we knew that no other location would suffice! The development is going to bring a new standard of urban living to Manchester – and Ancoats is the ideal location to push forward such innovation.” 

Jonathan Stephens, MD, Surrenden Invest
It’s fair to say that some developments are more interesting than others – and Ancoats Gardens is right up there with some of the most exciting that we’ve worked on. The apartments themselves are simply outstanding, with huge ceilings and an industrial chic vibe that is perfectly attuned to what renters in the local area are seeking. Then there are the on-site amenities. We can’t share full details for another few days, but we can say that the rooftop area is going to be incredible! We’ll reveal more later this week…
The local area is also fantastic. Over the past couple of years, Ancoats has been flagged up by the New York Times as one of the coolest places to live in the UK. On this side of the pond, the Times voted it the second coolest location in the country. So what is it that makes this area of Manchester so exciting? The expert team here at Surrenden Invest have had Ancoats on our radar for quite some time. Bordering the popular Northern Quarter, Ancoats has for some time been drawing in Manchester’s creative types, making a name for itself as the city’s most dynamic, creative district. If you want to start an energetic, disruptor business in Manchester, you head to Ancoats to do it.
The area benefits from a vast amount of home-grown talent, with upwards of 50% of Manchester’s graduates choosing to stay in the city after they leave university. The city is second only to London in terms of the percentage of the UK’s total graduates who work there, according to Centre for Cities. These talented young people have helped Ancoats to develop a distinctive vibe that sets it apart from other city centre destinations. Artisan eateries and independent coffee shops have sprung up to meet demand, creating a unique and inviting area that appeals to young professionals looking to get the most out of the urban lifestyle.
All these independent businesses and SMEs have created a fertile breeding ground for success. Deliveroo and Uber both call Ancoats home. Meanwhile the vast NOMA development – the largest regeneration site in the North West of England and the largest development in the UK outside the South East of England – is creating a superb new business and technology hub that will drive further success. The £800 million project will create a long-lasting legacy from which all those living in Ancoats will have the opportunity to benefit.
Excellent connectivity rounds off the area’s attractions. Surrenden Invest’s new Ancoats project, for example, is just a seven-minute walk from Manchester Victoria train and Metrolink station. Manchester Piccadilly, the city’s most connected railway station, is ten minutes away on foot. Meanwhile, Exchange Square and Piccadilly Gardens Metrolink stations are ten minutes and 12 minutes away respectively.
Ancoats’ myriad attractions make it a superb choice for those looking to live in one of the most vibrant and interesting parts of Manchester. And with the launch of an exciting new residential housing development just around the corner, Ancoats is about to become even more attractive…

Over the course of this week, we’ll be releasing further exciting snippets about our new Ancoats development. Follow us on social media to be the first to find out the facts!

Newcastle’s tallest ever crane heralds new era for city’s property market

The installation of a 110m tall loughing crane over the August bank holiday weekend will mark a new era for Newcastle’s residential accommodation, according to leading property investment agency Surrenden Invest. The crane is being installed to enable the next phase in the erection of Hadrian’s Tower, a residential development that will become the city’s tallest building.

At 27-storeys tall, Hadrian’s Tower will be an exciting new addition to the Newcastle skyline. The apartment block is set to usher in a new style of chic, urban homes, with residents benefitting from a range of on-site amenities. These will include a 24/7 hotel-style concierge service, a café and touchdown meeting points. The crowning glory will be the stunning sky lounge, which will offer unsurpassed views across Newcastle.

“Hadrian’s Tower is an incredibly exciting development to bring to Newcastle, as it will mark the start of a new phase for the city’s property market. We’re seeking to raise expectations with accommodation of this standard and to inspire the future of residential accommodation in the city as a result. Using the tallest crane that the city has ever seen plays a big role in that, not just from the physical build perspective but also from the psychological point of marking the start of a new era.” 

Jonathan Stephens, MD, Surrenden Invest
With an eight-tonne load capacity, the 110 metre loughing crane, which has a reach of 127 metres, will be used to lift everything from concrete slabs to plasterboard to cladding materials.

“This is a complex operation, due to the size of the crane. Even the mobile crane that is used to install it is enormous. Depending on the weather, we’ll be looking to have the Hadrian’s Tower crane in place by the end of Sunday 26 August. It will then remain on site for a year and the development will be visible from most entry points into the city during that time.

“We believe this will be the tallest crane that has ever been used in Newcastle. The angle of the loughing jib means that the whole structure will reach a height of 130 metres. I can’t see any reason why any of the city’s current buildings would have required a crane of this scale.” 

Keith McDougall, Operations Director, High Street Residential Ltd
The crane’s installation marks an exciting stage in the building’s progression and is expected to generate considerable local interest. According to Surrenden Invest, it also signifies the city’s arrival on the global investment map.

Take a virtual tour of this fantastic buy-to-let property investment opportunity.

“There’s no doubt that Newcastle has ‘arrived’ in terms of its investment credentials. We’re talking to a lot of investors who are keen to be part of the city’s future. There’s already plenty of regeneration work underway in Newcastle and some really exciting schemes, but nothing of this height. That’s why we’re so excited to be part of this step-change for the city’s property market.”

Jonathan Stephens, MD, Surrenden Invest

For more news of developments within the investment and residential property sectors, call us on: 0203 3726 499 or email us at: info@surrendeninvest.co.uk. You can also use our social media accounts to keep up to date with the latest industry developments and to chat with our expert team.

Manchester beats London to be crowned UK’s most liveable city

Having been active in the Manchester property market since 2015, Surrenden Invest has seen the city flourishing as a result of an influx of both modern renters and residential property investors. Now, it seems that we are not alone in recognising Manchester’s excellent potential. According to the Economic Intelligence Unit’s 2018 Global Liveability Index, Manchester has become the UK’s most liveable city.

Rising 16 places up the index to 35th, and leap-frogging London on the way, Manchester has ensured that the North of England is firmly on the map when it comes to global living standards. Along with Paris, Manchester was highlighted as recording the biggest improvement over the past year, both in terms of its overall score and its stability rating.
As a global business centre, Manchester offers myriad employment opportunities, both to workers and to entrepreneurs looking to launch their own start-up ventures. The city also has a rich cultural offering, from the Royal Exchange Theatre’s Hamlet and the country’s top arts centre to the “most intriguing art gallery” (the Whitworth Gallery) and some of the best libraries in England. Rough Guides highlighted all of these factors and more in June 2018 when it flagged up Manchester as the UK’s new cultural hotspot. Of course, there is also a rich musical heritage in Manchester, with contemporary residents enjoying a huge variety of live music.
For property investors, the city’s economic opportunities are too exciting to ignore. Regeneration work is delivering a booming city centre lifestyle, with well-located residential properties much in demand by private renters. The buy to let sector is responding, with developments such as Middlewood Plaza capturing investors’ imaginations.
In the heart of the £1 billion Middlewood Locks regeneration corridor, just 10 minutes from the city centre, the apartments, townhouses and duplexes offer stylish living with superb facilities, from the inclusion of smart technology as standard to the luxurious private roof terrace. In-vestment in the capital quality residences starts from £153,000, with 5.0% net yield.
Offering the ‘big city buzz’ but with a friendly atmosphere and superb transport connections, Manchester’s rise to glory in the Global Liveability Index is easy to comprehend. With property price rises of 30.25% over the past five years (according to Zoopla), so too is its attraction to investors with a keen eye for profitability.

For more information, call us on 0203 3726 499 or email us at: info@surrendeninvest.com. You can also keep your finger on the pulse of the latest industry developments and connect with our expert team by engaging with us on social media.

Why is it that prime property buyers just can’t get enough of Birmingham?

  • Prime Birmingham residential values to hit £500 PSF by 2020 (Knight Frank)

  • West Midlands property prices rising at fastest rate in UK (Halifax)

  • Birmingham’s innovation and dynamism, along with HS2, capture attention of overseas investors (Surrenden Invest)

It wasn’t too long ago that those with a passion for property almost took pride in never looking further than the prime London property market. Now, however, it is Birmingham that has cap-tured investors’ imaginations – and for more than purely financial reasons.

Property investment is fundamentally about making money, but as the buy-to-let market has matured, we’ve seen a shift in investors’ outlook. There’s something compelling about own-ing a property in Birmingham and investors are keen to be part of the action. It’s a city with a real buzz about it, so while London stagnates, investors are seeking to be a part of the action in Birmingham.”

Jonathan Stephens, Managing Director, Surrenden Invest
The UK’s second city certainly has the right credentials in terms of its numbers. The West Mid-lands housing market saw annual house price growth of 7% during Q2 2018, according to Hali-fax, meaning that prices there are rising significantly faster than anywhere else in the UK (the next highest house price increases were in Wales and Scotland, which both recorded growth of 3.7%). Within Birmingham itself, the pace of increase appears to be even faster, with Hometrack’s UK Cities House Price Index reporting a rise of 2.9% in the past year alone.
But price rises are only half of the story when it comes to Birmingham. The city also provides exceptional value in terms of its asking prices. The average Birmingham property costs just £161,100. That’s cheaper than the average for Manchester, Leicester, Leeds and a wide range of other regional cities. It’s also well below the UK average of £218,600, according to Hometrack’s figures.
The story so far as prime city centre property is concerned is even more compelling. In London, prime sales volumes have plummeted by 16.9% over the past year, according to the Q2 2018 Coutts London Prime Property Index, while prices have fallen by 1.7%. This is in stark contrast to Birmingham, where Knight Frank has projected that prime residential values will continue rising, hitting £500 per square foot by 2020.

The numbers stack up so well in Birmingham that it’s easy to see why the city’s prime resi-dential market has captured such attention both within the UK and overseas. A range of other factors come into play too. Birmingham is known for its striking, modern architecture and has an outstanding reputation as a shopping and leisure destination. Cultural pursuits and eco-nomic opportunities abound and the city has become a magnet for big businesses looking to relocate away from the expense and congestion of London.”

Jonathan Stephens, Managing Director, Surrenden Invest
HSBC, Barclays, Deutsche Bank and HMRC are among those to have been drawn to Birmingham in recent years. Now, the city is also among the top three options for the location of Channel 4’s new headquarters. And still property prices remain well below the UK average.
HS2 has played an important role in elevating Birmingham in the eyes of investors in recent years. The high speed network has pushed forward a number of regeneration schemes within the city, with enhanced connectivity to London and Europe seen as a key driver for Birmingham’s rising reputation overseas. Regeneration work is widespread, with areas such as Digbeth and Smithfield benefiting particularly.

One of the most notable things we’re seeing about the investment that is pouring into Bir-mingham is the focus on city centre living. Residences in the vicinity of iconic buildings, such as the Bullring or the Mailbox, are commanding attention from investors looking for premium properties in top locations.”

Jonathan Stephens, Managing Director, Surrenden Invest
Interest in the city is so strong that leading property investment agency Surrenden Invest has been taken aback at the speed with which homes at its Westminster Worksdevelopment are selling. Priced from £165,000, the properties provide investors with a 5% NET yield and plenty of scope for capital growth. The Surrenden Invest team is now poised to unveil a further Bir-mingham development, in close proximity to the Mailbox, although further details of this are currently being kept under wraps. One thing is for certain though – in this dynamic and fast-paced city, the next innovation is just around the corner.

Follow us and stay updated with the latest industry developments from our team of experts.

Regional property markets race to catch the capital

The latest Hometrack UK Cities House Price Index projects a narrowing of the property price gap between London and the UK’s other cities over the next year or two. For investors, the choice is clear – regional cities are the place to be if they wish to profit from property. But are we at risk of completing the same cycle as we saw just over a decade ago, or has the market learned from its previous mistakes?

While many factors mirror the housing market’s performance back in the early 2000s, there are some substantial differences that look set to bring about different outcomes from this state in the cycle. Tax changes are playing a key role in this, as are the rising quality and security standards of regional city developments.”

Jonathan Stephens, Managing Director, Surrenden Invest
At present, house price inflation stands at 4.3% for the UK as a whole over the past year. For London, the figure drops to just 0.4% over the same period. Edinburgh has seen the highest increase in values, at 7.1% over the year to April 2018, closely followed by Manchester, at 7.0%. Birmingham also fared far better than average, at 6.5%, as did Liverpool, at 5.9%.
The regional success stories stand in stark contrast to the price falls seen in 20 of London’s 33 local authorities. Developments such as Westminster Works in Birmingham are thus offering investors far more potential for capital growth, as well as healthy yields. Ideally positioned to benefit from the HS2 Curzon Street station scheme, as well as the redevelopment taking place as part of the Smithfield masterplan, the premium apartments are raising the bar for rental accommodation in Birmingham. The luxurious apartments come with a range of top facilities, including a concierge service, secure on-site parking and smart home, eco-friendly technology in every home.
The same trend of the regions racing to catch up with London’s prices occurred between 2002 and 2005, when London saw weak growth after a period of strong performance from 1996 to 2000. Regional markets had lagged behind, but began reporting strong performance from 2001 onwards, thus narrowing the price gap.
However, leading property investment agency Surrenden Invest is quick to point out that the current market has a number of significant differences to that of the early to mid 2000s. While the cycle appears similar, secondary cities may actually stand a more realistic chance of catching up to London’s prices than they did previously.

People have been saying that London is too expensive since before Black Monday in 1987, yet over the last 30 years property prices there have grown enormously. Still, there comes a point when a market becomes too expensive to bounce back quickly, even when there are chronic underlying supply issues, as is the case with London. The city remains one of the world’s most significant and sophisticated property markets, but that doesn’t mean that it can’t suffer a sharp, swift price correction – or that it could quickly recover from such an occurrence.”

Jonathan Stephens, Managing Director, Surrenden Invest
In previous property market cycles, the regions have narrowed the price gap between their cities and London, only for London’s prices to race ahead once more. This time, though, the quality, security and corporate governance of nationwide developers are far stronger than they were even ten years ago. Previously a concern for risk-averse buyers, these strong credentials – and the attractive yields on offer – mean that regional cities stand a good chance of catching up to London’s prices outside of the standard cycles that we’ve seen over the past 20 years.
Another contributing factor is the new Stamp Duty regime. Many of London’s properties are located in prime and super prime locations, costing upwards of £1 million. The sale of those properties has been significantly hampered by the higher tax rates, as well as the additional 3% charge on second homes. With regional properties available for significantly less money, the tax burden is reduced sufficiently to make regional property purchases more attractive than London ones in the eyes of many investors.

Are we likely to see the regions catch up relative to London in terms of their property prices? Probably not, as London remains a uniquely appealing market. However, what we are likely to see is a sustained and significant narrowing of the price gap, as regional cities hold fast in the wake of London’s price correction.”

Jonathan Stephens, Managing Director, Surrenden Invest

For further details email us at: info@surrendeninvest.com or call us on: 0203 3726 499

Apartment prices rising faster than any other property type, new data reveals

Newly released data from Halifax has shown that the average UK apartment has increased in value by £1,251 per month over the past five years, rising by £75,074 over the period.

Although apartments make up just 15% of all home sales, their relevance to urban labour markets is increasingly important. This is borne out by the Halifax data, which shows an increase of 48% in apartment values between 2013 and 2018, compared with an increase of just 42% for terraced houses and 27% for detached homes.

“The sustained level of demand for apartments in regional city centres has shown solid credentials, even in the wake of the Brexit referendum. With dynamic local economies and solid labour markets, regional cities are an enticing prospect for those looking to make capital gains, whether as owner-occupiers or investors. In fact, the majority of investors we work with now come to us with a regional city firmly in mind – London has lost its shine as a residential investment prospect as the UK’s other cities are producing better returns.”

Jonathan Stephens, Managing Director, Surrenden Invest
Liverpool is one city that has benefited from this new breed of regionally focused property investors. Developments such as The Tannery, which offers bright, contemporary residences with beautifully presented interiors, are drawing in both domestic and international investors. Hadrian’s Tower, in Newcastle, is another such example. Its blend of exceptional apartments and innovative social spaces is precisely what investors are looking for.
Halifax’s latest House Price Index shows a monthly rise in home values of 1.5% during May, following a brief wobble in April. The lender flags up the labour market’s performance, along with low interest rates, as two of the reasons behind this.

The continuing strength of the labour market is supporting house prices. In the three months to March the number of full-time employees increased by 202,000, the biggest rise in three years. We are also seeing pay growth edging up and consumer price inflation falling, and as a result the squeeze on real earnings has started to ease. With interest rates still very low we see mortgage affordability at very manageable levels providing a further underpinning to prices.”

Russell Galley, Managing Director, Halifax
With the UK population expected to pass 70 million by mid-2029, and urbanisation increasing steadily (from 80.2% in 2006 to 82.84% in 2016, according to Statista), demand for city centre apartments looks likely to remain strong over the years ahead. And with apartment prices increasing at a faster rate than any other kind of accommodation, they are sure to remain the property of choice for investors looking to make the most of their money.

For further details email us at: info@surrendeninvest.com or call us on: 0203 3726 499