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New data reveals opportunity for first time buyers to outperform housing market

New data reveals opportunity for first time buyers to outperform housing market

Recent data has revealed that First-time buyers in the UK need an average income of £54,000 in order to buy a property, marking a 9% rise from 2016 when Britain decided it would leave the European Union.

Looking at the data released from property website Zoopla this month, it’s fair to say that Millennials have had something of a raw deal when it comes to their finances. From soaring house prices, inflation exceeding earnings, through to political and economic uncertainty with Brexit – getting onto the property ladder has never been more difficult.
Those wanting a start on the housing ladder will often face a never-ending stream of negativity, with many believing it’s near impossible to buy their first home as they cannot raise enough money. This has created a new opportunity for first time buyers to act more savvy and  to selectively invest in Buy to Let property in national growth locations.
Data released by Zoopla found that the average household income required to buy in London was £84,000. In Liverpool, which had the lowest required household income before tax of the 30 cities surveyed, it was just £26,000.
Current house prices are encouraging huge rental demand in the UK’s busiest cities with young professionals flocking to areas like Manchester, Birmingham, Newcastle and Liverpool. Purchasing a one or two bedroom apartments as a Buy to Let in these locations is a shrewd investment for those priced out of their home town or city.

“The world as we knew it has changed when it comes to property ownership. We’re seeing more people renting and for longer periods, but that doesn’t mean that they need be denied the opportunity to profit from property. It’s just that doing so may look different in the future. Property investment companies need to work with Millennials to encourage that to happen.”

Jonathan Stephens, MD, Surrenden Invest
While Liverpool was named the most affordable market for first-time buyers, it was also the city with the highest house price growth, with values rising 5% over the 12 months April to April.
The Tannery is one of Liverpool’s most iconic residences. The elegant exterior sets the tone for the graceful, stylish homes inside, bringing capital-quality residences to Liverpool’s renters. The low entry price of just £85,000, coupled with 6% NET yields and long term capital growth projections make The Tannery highly appealing to investors looking to either bolster or begin their portfolios with one of the most exciting new opportunities of 2019.

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

Liverpool leads the way as regional cities buck the trend

Liverpool leads the way as regional cities buck the trend

The latest Hometrack UK Cities House Price Index has reconfirmed the strength of regional property markets, with Liverpool leading the pack. The March 2019 figures reveal a year-on-year price increase of 5.7% for the average Liverpool home, which is now priced at £122,100.

Regional cities are also leading the way when it comes to sales volumes, with Liverpool once more showing the rest how it’s done. While sales volumes in southern cities are languishing some 13% lower than in 2015, sales in Liverpool, conversely, are 19% higher than they were four years ago.

“Liverpool is the shining star when it comes to regional city performance right now. It’s enjoying a busy property market, which high sales volumes and rapidly rising prices – a great backdrop for investing in properties in sought-after locations.”

Jonathan Stephens, MD, Surrenden Invest
Nestled in the L3 postcode district, The Tannery is just such a property. The striking building’s architecture was inspired by the former leatherworks that gave the site its name. Available from £85,000, the contemporary apartments have been designed to capitalise on their prime location, with stylish interiors and high quality specifications due to attract professional tenants looking to be at the heart of the action in Liverpool.
This resurgence of city centre living has seen many regional cities enjoy rapid growth in recent years. Both Manchester and Birmingham continue to perform well, according to the Hometrack data. Manchester’s property prices increased by 5.1% in the year to March 2019, while Birmingham’s went up by 4.2%.

“While we’re seeing a slowing down of the housing market in some southern areas, the Midlands and regions further north continue to enjoy healthy property price growth and sustained demand from both buyers and renters. Many of our property investment UK opportunities in recent years have focused on these key regional markets, which have consistently delivered excellent results for those who have invested in them.”

Jonathan Stephens, MD, Surrenden Invest

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

First time investors and buy to let – is now the right time?

First time investors and buy to let – is now the right time?

Choosing the right moment to make an investment is an important part of enjoying financial success, whether you opt for stocks, houses or cryptocurrencies. Political factors such as Brexit can be strong influencers on people’s decision about when is the right time to invest. As such, the delay to the UK’s departure from the EU has given many investors breathing room to consider where they would like to invest in the UK’s buy to let sector, without feeling unduly rushed.

For first time investors in buy to let homes, having the time to take the process at their own pace is particularly important. Buy to let can be a profitable and satisfying way to make your money grow, but not every property investment is equal. As such, those who have never invested in residential accommodation before need to be certain that they have identified all of the considerations that they need to.
In support of this, Surrenden Invest has just released its Guide to Buy to Let Investments. The detailed guide acts as a ‘one stop shop’ for anyone interested in profiting from buy to let. It covers everything from buy to let basics, to investment best practices and financial considerations. The free guide also looks at the current state of the UK’s buy to let market and highlights regional hotspots that warrant particularly close attention.

“Buy to let is such an exciting opportunity and the Brexit delay opens up a window for many would-be investors to take their time in considering the UK market. As such, our new Guide to Buy to Let Investments shares the insights that we have gleaned over years of operating in this sector. It has been designed as a useful resource for first time buy to let investors, as well as those who are already familiar with buy to let property UK opportunities.”

Jonathan Stephens, MD, Surrenden Invest
There are plenty of factors pointing to the resilience of the UK housing market right now and a stable market makes a good starting point for those who are new to buy to let. The April 2019 Rightmove House Price Index highlights a 1.1% rise in new seller asking prices – the biggest such uplift since March 2018 and the highest spring moving season uplift since April 2016.
Northern cities, in particular, are commanding attention as a result of their buy to let opportunities. Hadrian’s Tower in Newcastle, The Tannery in Liverpool and Middlewood Plaza in Manchester together showcase the class and breadth of buy to let opportunities available across the dynamic buy to let market of the North.

“The northern cities are presenting some superb buy to let opportunities at present. For those who are considering dipping a toe in the water, our new Buy to Let Investment Guide is the perfect starting point. It not only covers the practical side of buy to let, but also takes a look at key urban markets and the fundamentals that make them such an exciting place to invest right now.”

Jonathan Stephens, MD, Surrenden Invest

For updates on investing in buy to let UK opportunities, as well as the latest free-to-use resources, follow the Surrenden Invest team on social media.

Manchester voted world’s 15th best city

Manchester voted world’s 15th best city

Picture the world’s greatest cities and what springs to mind first? London? Paris? Hong Kong? New York? Tokyo? Well, according to the 34,000 city dwellers interviewed by Time Out, Manchester now ranks up there with the best. The city came in 15th in Time Out’s list of the 48 best cities on the planet.

While New York, Melbourne, Chicago and London topped the list (in that order), Manchester proudly took the 15th spot, beating the likes of Buenos Aires and Barcelona thanks to its outstanding cultural attractions and “legendary (and growing) bar and club scene.”

“Manchester is an incredible city that is going from strength to strength. In recent years we’ve seen it competing on the global stage with some of the largest cities in the world. In 2018, IBM flagged it up as being in the top 10 cities on the planet for attracting foreign direct investment. Now, Time Out has recognised just how much Manchester has to offer those who live here.”

Jonathan Stephens, MD, Surrenden Invest
While Manchester’s nightlife was one of the aspects highlighted, the city’s art galleries, museums, sporting prowess, gastronomic scene and retail offering all came into play in the ranking.
For those with a focus on property investment UK opportunities, Manchester has even more to offer. The city is an established haven for property investors looking for solid yields and plenty of potential for capital growth. According to Hometrack, it is one of only two cities to have achieved price growth of 17% since the Brexit referendum in June 2016 (the other being Leicester).
Developments such as Middlewood Plaza are making it easy for investors to tap into this lucrative buy to let market. Just 10 minutes from the city centre, in the Middlewood Locks regeneration corridor, the stylish apartments, duplexes and townhouses are ideally positioned for access to both Manchester city centre and the best that Salford has to offer (Salford Central is, in fact, just 750m from Middlewood Plaza).
Boasting a private roof terrace, secure underground parking, smart technology and luxury furniture packs, with investment from £153,000, Middlewood Plaza is attracting interest from the wider global investment community, as well as from investors within the UK.

“Manchester is a city that welcomes investors with open arms. Its housing market has performed consistently well in recent years, upstaging other regional cities around the UK. The future also looks bright for Manchester’s property market, with Savills projecting compound growth of 21.6% for the North West over the coming five years – higher than that of any other UK region.”

Jonathan Stephens, MD, Surrenden Invest

To keep up to date with the latest news on investing in Manchester and other UK regional cities, connect with the Surrenden Invest team on social media.

Manchester enjoys huge boom in residential development

Manchester enjoys huge boom in residential development

As a leading property investment company, Surrenden Invest has long had its corporate eye fixed firmly on Manchester. The city offers some excellent prospects for buy to let investors looking for strong returns. In fact, the whole of the North West is an attractive area for residential development investors, with HM Land Registry’s latest house price index confirming that it is leading the UK for both monthly and annual house price growth at present.

With the city suffering a major housing shortage (like many of the UK’s urban areas), Manchester is in desperate need of new homes – and recent figures show that that is precisely what it is getting. Deloitte Real Estate’s annual Manchester Crane Survey reports that 2018 was the city’s third record year in a row for residential real estate development. A total of 48 residential schemes were underway over the course of the year. Together they account for some 14,480 homes – 3,345 more than were under construction at the same time in 2017.
Not only that, but the pace of the construction is continuing to increase – so much so, that more homes should be delivered over the coming three years than were built in the last decade.

“Manchester is a key buy to let location with incredible future potential. Those who spotted the signs early have already enjoyed years of healthy yields and capital growth courtesy of their Manchester buy to let purchases, but the city is far from done. The huge commitment to building enough homes for its future population is producing some outstanding opportunities in this dynamic northern hotspot.”

Jonathan Stephens, MD, Surrenden Invest
One of the developments contributing to the impressive 2018 figures is Middlewood Plaza, in the heart of the city’s Middlewood Locks regeneration zone. Available for investment from £153,000 and with a net yield of 5%, the development offers stylish apartments, townhouses and duplexes to buy to let investors wanting to be a part of Manchester’s success story. The luxurious residences offer a turnkey management solution designed to capitalise on the city’s booming market. Deluxe furniture packs, secure underground parking and a superb roof terrace all maximise the building’s appeal to tenants, as does its location just 10 minutes from Manchester city centre.

“Last year Manchester established itself as one of Europe’s fastest growing cities, and this year’s report shows no sign of activity slowing down. The city is leading the way in catering for an increasing population through the development of entire new neighbourhoods – whether that is bringing forward new living, retail or office space. These new districts are redefining the parameters of the city centre as development spills out into the suburbs, particularly in the northern and eastern quadrants of the city.”

Simon Bedford, Partner, Deloitte Real Estate

To stay up to date with investing in Manchester and other UK regional cities, simply follow the Surrenden Invest team on social media.

Birmingham’s New Property Hotspots

Birmingham is undergoing a wave of residential and commercial development that is taking the city to new heights and providing residents and businesses with a wealth of new opportunities and talent. Here are the hottest developments in Birmingham this year.

Westside

Westside was originally one of the most important suppliers of commercial rent in central Birmingham and the redevelopment of Brindleyplace during the 1990s helped to fuel this. However, over the following decade, Snowhill, on the opposite side of the city, started to grow in importance, and there was a rivalry between these two opposing locations.
More recently, major developments at Arena Central and Paradise have, combined with Birmingham’s new library and Baskerville House, connected the Westside to the Birmingham’s centre to create a larger and more dynamic central business district. The area has seen commercial giants such as HSBC, Network Rail and PWC create new hubs in the area.
Westside’s infrastructure continues to improve with new vistas forming, which were previously blocked by the old library. Now New Street and local amenities are far more accessible, providing a more attractive urban landscape for residents and workers alike.

Snowhill District

On the opposite side of the tracks is the Snowhill District, which is growing as a major business district, with the arrival of KPMG, AECOM, Amey, Gowling WLG and EY.
The Snowhill Masterplan is taking shape and new developments include 3 Snowhill, Post and Mail, and Birmingham’s skyscraper zone. Snow Hill has improved rail services to London Marylebone, and a new tram line provides fast commuting to and from Wolverhampton to the north, and New Street to the south.
Also in development in the Eastern Metro extension that will link to Curzon Street station, the terminus of the HS2 high-speed line to London. The latest plans will see newly created pedestrian access across the area, making the urban environment far more attractive.

Colmore Row

Colmore Row is the traditional core of Birmingham’s professional district. For many years Colmore Row’s development stagnated due to a lack of new sites. However, there have been several new development opportunities of late that have improved the quality of rental accommodation available, which has helped boost occupier expectations and rental levels across the area.
The most exciting developments include IM Property’s 55 Colmore Row, Rockspring/Sterling’s 103 Colmore Row and Ardstone’s 1 Newhall Street, which provide quality properties that link to the Westside and Snowhill business areas.
This whole area has experienced gentrification with the opening of many restaurants, bars and cafes, as well as a revamped Grant Hotel, which has turned the whole area vibrant and happening area.

Jewellery Quarter

The Jewellery Quarter provides some of the best residential properties, with converted factories and traditional townhouses, along with more convention new builds.
This area has its own business hub, which is dominated by start-ups, making it one of the most desirable areas to live, making it Birmingham’s Shoreditch. New metro connections to New Street Station have helped to further bolster its appeal, and the new Eastern Metro extension, due for completion in 2026, will provide a fast link to Curzon Street and the HS2 terminus. The Jewellery Quarter is also within a 15 minute walk of Snow Hill station, which will further be improved with new pedestrian routes.

Gun Quarter

On the edge of Jewellery Quarter and Snow Hill is Gun Quarter, just a short walk from the CBD. Although central, this area has some discounted properties providing some excellent investment opportunities. Gun Quarter will also benefit greatly from the Snowhill Masterplan and become a key residential area in the city, making it ripe for property investors.
As well as excellent rail connections, tramlines and pedestrian access across the city, these areas also benefit from easy access to the motorway network, via that A38. Looking further ahead, we can see that Birmingham will start to rival London and the Northern Powerhouse as a key area for growth and development for the next generation.