Manchester Market Insight – Q1 2021
By John Parker, Business Development Director
Manchester has long been regarded as the UK’s go-to market for buy-to-rent investors who have enjoyed sustained year on year rental and capital growth. Values in the centre of Manchester have nearly doubled since 2008 and rental values have increased year on year by 5 – 6%. With prices in super-prime Manchester starting from £245,000 for a 1-bedroom apartment, the challenge now for investors is to find pockets of Manchester that are still undervalued and primed for long term rental and capital growth.
This significant growth wouldn’t be possible without the influx of professionals seeking convenient rental accommodation in Manchester city centre. In fact, Generation Y (those born in the 80’s and 90’s) makes up 89% of the city ’s population growth, which fuels the growing demand year after year.
As a result of Manchester continued property market growth, London is seeing less and less prominence. Average property prices in the capital decreased by 4.1% in 2019, whilst rental growth dipped to its lowest since October 2010. In contrast, Manchester ’s average property prices increased by 5.5% and rental values increased by 6.5%.
Manchester Market Snapshot
6 postcodes in Manchester enjoyed the highest national property price increases in 2020
The average apartment in Manchester is just over a third of the price of a London apartment
Manchester’s population has grown by 149% since 2002
Manchester property values up 34.36% over past 4 years
Manchester postcodes boast some of the highest Average buy-to-rent yields in the UK, at 6.0%
Manchester rents predicted to rise by 4.2% per year for the next 5 years
The average property is let within 2 weeks of going to market
At 43%, Manchester has one of the highest proportion of private renters in the UK
Our newest launch, Town Square is located in the urban village of Eccles which has just been confirmed by Rightmove in January of this year as the UK’s top performing market hotspot in 2020 with a staggering 16% increase in property values.
Eccles, on the west side of Manchester, has been named as the property hot spot of 2020, with prices rising faster than anywhere else in Britain according to the property website Rightmove. Just 12 months ago the average asking price in this undervalued pocket of Manchester was £184,299 compared with £213,703 at the start of the year.
Eccles is one of three Manchester suburbs in the top-five fastest rising areas of 2020, with the other two also in the north of England. In a dramatic reversal to rankings in previous years, a wealthy London commuter town, Sevenoaks, was named by Rightmove as the location where the average price fell the steepest during 2020, falling from £693,569 to £681,069.
Eccles benefits from nearly every acknowledged contributory to a top performing residential property market benefiting from excellent transport links and academic credentials. Located just five miles west from Central Manchester, Town Square is under 12 minutes by Train or Metrolink to anywhere in the city centre and there are 24 schools within a 2-mile radius rated good or outstanding by Ofsted.
ECCLES is THE UK’s BEST PERFORMING pOSTCODE & named as the property hot spot of 2020
Eccles, home of the iconic cakes and located west of Manchester, has seen a bigger annual increase in average asking prices than anywhere else in Britain, up 16%. The national average increase is 6.6%. Average asking prices in the town have risen from £184,299 in 2019 to £213,706 this year.
Town Square is a collection of just 41 beautifully presented apartments with a resident roof top garden set within the UK’s top preforming postcode. The development has a superior specification and finish throughout, with branded appliances in the kitchen and bathrooms and will raise a new standard of living in a market that’s expectations are changing fast.
Because of Eccles excellent investment potential as the UK’s leading investment consultancy Surrenden Invest have exclusive access to the best buy-to-rent opportunity in this undervalued pocket of Greater Manchester.
Please do not hesitate to contact one of our experienced property consultants if you would like to discuss the investment case for Manchester in greater detail.
Business Development Manager
For regular updates and advice on investing in Manchester Buy-to-Rent property, follow Surrenden Invest on social media or get in touch today.
Newcastle Market Insight – Q1 2021
By Conor Kilcoyne, Senior Property Consultant
With a range of topflight sports teams, historical & cultural experiences, shopping & leisure facilities, and an attractive nightlife one could say the Newcastle community is a proud one. As well as an established community, Newcastle is fast becoming the most sought-after buy-to-rent market in the UK for investors seeking greater capital growth and a more attractive yield than the go-to regional cities can now offer.
Property values in Newcastle are 14% lower than that of Birmingham and Manchester.
Newcastle is one of the fastest regional growing economies in the UK.
Over 33% of graduates from Newcastle Universities go on to live and work in the city .
Arc Avenue is set within the heart of the £60m Gateshead Quay re-generation project.
Newcastle property prices have experienced 78% growth since 2000.
20,000+ students study in city highlighting the need for high quality accommodation.
Commercially, Newcastle has never been so strong with large global corporations such as Siemens, Sage PLC, Nestle and Proctor & Gamble occupying office space and setting up UK headquarters throughout the city.
Newcastle plays host to two of the UK’s leading universities: Newcastle University and Northumbria University. Newcastle University is often regarded as the leading university for Computer Science in the country, producing the next generation of tech entrepreneurs who will flourish in the city. Factoring in the North of Tyne Devolution deal which will see annual growth in economic output of £1.1bn and 10,000 new jobs, Newcastle’s already growing base of young professionals (33% of all graduates settle and work in the city) looking for quality, affordable accommodation is only going one way.
According to the PP index, it was not until 2019 that property prices in Newcastle recovered to pre-2008 levels. Comparing this to other post-industrial cities such as Birmingham and Manchester who recovered as quickly as 2014, real estate in Newcastle is now well-positioned to out-perform the rest of the UK. Development is set to surge from 2022 onwards with developers applying for planning with local councils in increasing numbers.
Newcastle remains one of the more affordable buy-to-rent locations in the UK, with property prices currently 15% below rival cities, such as Manchester. However, with continued investment into the city we are seeing property prices begin to soar. This means that Newcastle is primed for sustainable capital and rental growth for many years to come.
Property values up 3.9% over the past 12 months and 23.76 over the past five years.
Newcastle property prices are 14% lower than Birmingham & Manchester.
Newcastle’s population is expected to grow by 863,000 by 2030.
Newcastle postcodes boast one of the highest average buy-to-rent yields in the UK, at 6.52%.
The average property is let within 2.5 weeks of going to market.
Over 33% of university students stay to work in Newcastle.
Due to Newcastle’s growth, Surrenden Invest have acquired exclusive access to the best investment opportunities in the city. These opportunities strengthen our already healthy nationwide development portfolio.
Please do not hesitate to contact me if you would like to discuss the investment case for Newcastle in greater detail or find out more about our latest opportunities in the city, such as the recently launched Arc Avenue, a waterfront Grade II Listed period conversion.
Senior Property Consultant
For regular updates and advice on investing in Newcastle Buy-to-Rent property, follow Surrenden Invest on social media or get in touch today.
Buy-To-Rent Best Practice – Welcome to the exciting world of property investment
It sounds very simple…. For property to be a good investment, you need to make more money from it than you spend, however in practice its not always that simple. Buy-to-rent is one of the most established and reliable ways of growing capital, both as a means of boosting earnings and as a retirement plan.
If you are new to property investment, it can be tough to know where to start. That’s why Surrenden produced regular reports such as this helpful guide to investing in UK property. We’ll cover everything from the different types of property investment to industry terminology, along with historical property market trends, current hotspots, regional demographics and some property investment best practices.
If you’re considering investing in property for the first time, read on!
Buy-To-Rent Best Practice
1. DO YOUR HOMEWORK
If you are considering a buy to rent investment, it’s time to start researching. Property investment consultancies can help here, as they will have plenty of local area knowledge, but it’s essential to undertake your own research too. This should cover everything from the buy-to-rent mortgage options that are most suited to you, to your responsibilities as a landlord, to detailed analysis of the areas in which you are considering for investment.
That means getting under the skin of each location and finding out about its property market, recent and planned regeneration work, population growth, visitor numbers, upcoming infrastructure projects, rental market demand and yields – anything and everything that can help to inform your decision regarding in which area and which particular property you should invest in.
2. MAKE LIFE EASIER FOR YOURSELF
It is entirely possibly to buy a resale home, refurbish it, furnish it, marketing it and rent it out yourself. However, few people have the time and energy to take this approach. That is why most new build developments come with the option to purchase a furniture pack and to use a turn key management solution. These are particularly useful to first time investors looking to ease their way into the buy-to-rent sector as smoothly as possible. Just remember to do your research here too and check out the management company before you commit to using them.
3. INVEST WHERE YOU KNOW
That does not mean you should only invest in your hometown – rather that it is worth getting to know the place(s) in which you plan to put your money. Researching an area from the comfort of your desk or sofa is important, but it cannot deliver that instinctive feel that you get for a place when you go there in person and look around it.
4. KNOW YOUR INVESTMENT CONSULTANCY
Just as you need to check out your investment location in detail, you need to find out all you can about the consultancy with which you are considering investing with. That means speaking to them by phone and establishing how knowledgeable they are about the UK property market. If that process leaves you with any qualms, move on until you find a consultancy that gives you full confidence. Read testimonials and reviews as well – not just on the agency’s website, but elsewhere on the web and ask what percentage of their clients reinvest with them – if it’s zero, then that’s a big warning sign.
For regular updates and advice on investing in UK Buy-to-Rent hotspots, follow Surrenden Invest on social media or get in touch today.
Welcome to the exciting world of property investment
Surrenden Invest is an award-winning property consultancy for clients looking for asset-backed, full-service buy-to-rent opportunities. We deliver a national residential portfolio, working with some of the largest regional and national developers in the UK.
We don’t believe in a ‘one size fits all’ approach, so our team of property professionals work at the forefront of regional opportunities, while delivering expert national coverage. We take an in-depth view of regional markets so that we can deliver unique opportunities to our clients and better meet their investment requirements.
With our exclusive portfolio, regional coverage and expert consultants, Surrenden Invest has established itself as the go to property investment consultancy of choice for investors looking to capitalise on the UK’s lucrative property market.
Our partnerships enable us to present our clients with the very best of the UK’s buy to let market, that would ordinarily only be available to institutional investors.
Before we launch a new development, we undertake extensive due diligence, to ensure our clients can invest with utmost confidence. We balance a regional focus with a national outlook, working with investors to meet their individual needs.
If you are new to property investment, it can be tough to know where to start. That’s why Surrenden produce regular reports such as this helpful guide to investing in UK property. We’ll cover everything from the different types of property investment to industry terminology, along with historical property market trends, current hotspots, regional demographics and some property investment best practices.
Download your complementary Buy-to-rent Guide, National Portfolio Brochure and link to our meet the team page
Brexit: What Can UK Property Investors Expect On January 31st 2020
The long “Brexit dip” in the London property market appears to have bottomed out ahead of a possible spring revival. While the economy is still languishing, the current weak pound could actually make the UK property market more appealing to foreign investors, as their money will go further.
Assuming the European Parliament also gives the green light, the UK will formally leave the EU on 31 January with a withdrawal deal – and it will then go into a transition period that is scheduled to end on 31 December 2020, during this period the UK will effectively remain in the EU’s customs union and single market.
The UK Property Market has been held back over the last 12-18 months due to the uncertainty of Brexit and latterly the election. Now both of these questions are settled it is likely there will be a bit of a Brexit bounce in activity at the start of 2020. As a result, we expect more people to put properties up for sale and more buyers coming into the market.
Estate agent Savills has said it is benefiting from a “Boris bounce” that has driven an increase in UK house sales since the December general election.
Looking to the year ahead, increased political stability in the UK should maintain improved sentiment in real estate markets. Nevertheless, some caution may remain until the full impact of Brexit is better understood.
The UK property market is looking increasingly attractive to foreign investors thanks to the country’s current weak currency, with high-net-worth individuals from across the world looking to snap up some Brexit bargains.
It is still too early to predict what impact Brexit will have on property values. A weakening of the appeal of UK investment could drive prices down or a lack of certainty could drive up interest.
“In years gone many international buyers never look past London, but since 2016 other key UK locations have become increasingly popular option for foreign investors looking for value that just isn’t available in London.”
The February Budget will no doubt affect the market, especially if there are reforms for first-time buyers, however, it’s largely expected that confidence will somewhat return, and house prices will increase.
Whilst there are concerns about the impact of Brexit on the U.K property market, it would seem that for the most part, it’s only a decelerated market from a domestic perspective. Foreign investors are not put off and are instead seeking areas in the UK that secure investments with the greatest possible yield.
For regular updates on Brexit and investing in UK buy to let hotspots, follow Surrenden Invest on social media.
Liverpool flagged as UK’s top buy to let hotspot, as new development brings world-class living standards to the North West.
New data from Private Finance has revealed that Liverpool (along with Nottingham) is the best city in the UK for buy to let property yields. Already a favourite with property investors thanks to its rising prices and extensive regeneration work, the North Western city has now been flagged as enjoying average net rental yields of 6.2%
The Private Finance report highlights the importance of choosing investments carefully in order to overcome recent changes to the tax structure for buy to let landlords. As such, all eyes will be on Liverpool’s property market during 2018, as investors seek to maximise their returns in the UK’s most profitable city.
The potential for capital gains in Liverpool also looks promising for 2018, based on the city’s performance over the past year. House prices have risen by 5.51% according to Zoopla data, while over the last five years they have increased by 28.34%.
Driving part of this growth is the extensive regeneration work being undertaken, with developments like Ten Streets and the Jennifer Project creating popular new districts for those looking to rent and buy in Liverpool.
Thrown into the heart of this hotbed of economic opportunity is a stunning new development known as The Tannery. Taking its name – and the inspiration for its creative exterior – from the former Tannery on the site of which it is being built, the development will provide 106 studio apartments, 136 one-bedroom apartments and 139 two-bedroom apartments, all designed to offer world-class living facilities and raise the bar for Liverpool’s rental accommodation.
Set in the premium L3 postcode area, just to the north of the city centre, The Tannery will be home not only to bright, spacious apartments, but also a high-end gym, a communal courtyard and roof garden for socialising and entertaining and secure underground parking with lift access. Just a mile from Liverpool ONE, the apartments provide superb access to the city’s amenities, as well as offering modern homes as part of a thermally efficient development.
These iconic residences offer a quality of living that is synonymous with the world’s greatest capital cities, heralding a new era for Liverpool’s property market. The Tannery has been designed to allow investors to maximize their returns by investing in the most exciting new development in the UK’s most profitable city. Demand is expected to be spectacular.
With 2018 now upon us, anyone thinking about investing in bricks and mortar wants to know what’s going to happen over the next 12 months. Will prices continue to edge up, stabilise or dip down? Where is best to invest? Does buy-to-let still stack up? Jonathan Stephens, Founder and MD of expert property investment agency, Surrenden Invest, which has helped 700 clients invest in UK bricks and mortar over the past 2 years, shares his 5 predictions for the UK property market in 2018.
1. Manchester will remain robust
Manchester will remain robust with city centre fringe redevelopment schemes offering the best opportunities. Manchester is tipped for rapid growth over the years ahead. Its population is projected to expand by 20% by 2025, reaching 625,000 residents, according to city analysts. Such a rapid turnaround in population size is never easy for city planners to address and Manchester is estimated to be around 40,000 homes behind the number it needs, with demand continuing to put pressure on supply. Pressure on city centre land remains incredibly high thus it is to the outer fringes of the city that tenants are moving to, taking advantage of more affordable housing. With property prices significantly less than city centre sites, this is where buy-to-let investors need to be looking when it comes to Manchester.
2. Birmingham will continue to be one of the strongest buy-to-let markets in the country
Birmingham will continue to be one of the strongest buy-to-let markets in the country. Often overlooked, the UK’s second city (by population), Birmingham, has a great deal to tempt buy-to-let investors in 2018. Birmingham’s youthful population and the huge number of graduates that the city produces every year has created an excellent environment for entrepreneurship. One part of the city in particular, Digbeth, has become a hotspot for new businesses and cultural activities, attracting large number of young professional residents. We will see Digbeth, just 10 minutes from New Street Station booming with gentrification this year and so now is the time to buy before prices soar.
3. Liverpool will continue to offer low price points and strong growth potential
Liverpool will continue to offer low price points and strong growth potential. 10 years on from being announced as the European Capital of Culture, the city has gone from strength to strength. Liverpool has a thriving, service-based economy, which was worth £29.5 billion in 2015 and the city is leading the UK’s Northern Powerhouse region in terms of its overall GVA growth and its growth of GVA per capita. Economic output will continue to improve with the likes of Cunard Shipping bringing a large share of their operation back to where it all began in 2018. A growing population and plenty of blossoming talent, backed by strong economic credentials and a buoyant housing market make for an ideal environment for opportunity, boosting Liverpool up the list of cities to watch most closely in the UK over the coming year.
4. London will remain slow
London will remain slow with some prominent city centre locations seeing prices drop. Anyone who lives in London, or indeed reads the papers, will know that the capital slowed in 2017 and whilst the long-term outlook for one of the world’s top real estate markets remains optimistic, the impact of slowing prices will be felt especially if we see further interest rate increases. However undervalued pockets will continue to offer irresistible opportunities especially locations set to benefit from Crossrail due to open later this year.
5. Newcastle will be the dark horse of 2018
Newcastle will be the dark horse of 2018. Newcastle and its twin city, Gateshead, has been quietly waiting in the wings, growing in population and economically, over the last couple of years. 2018 will be the north-east city’s time to shine as a higher than average economic activity rate, rising property prices and significant local investment mean that Newcastle is becoming something of a favourite with businesses and investors alike. Surrenden Invest has taken up options on several sites and predict big things for buy-to-let investors in this hidden gem.
Buying a property is just the first step in becoming a property investor. Property management can be very complex and time consuming, so hiring an agent to take care of day to day matters may be the best solution.
Take the hassle out of property management with an agent
After making your first property investment, you need to prepare the property for occupancy, and then find reliable tenants to pay your rent. Few investors appreciate how much work is involved to turn an investment into a profitable income. Fortunately, there are many good agents who specialise in property lettings, so for a modest fee you can pass the hard work on to somebody else.
Why use a lettings agent?
An agent can literally do everything for you, from picking up the keys from the property developer to arranging the sale of the property when you are reading to cash in on your residential property investment. Agents can find tenants, chase for late payments, and evict tenants if necessary. An agent will also ensure that the property is in sound condition, and arrange for repairs to be carried out when required.
When should you hire an agent?
You should get an agent in place as soon as you have purchased a property, and before you complete the transaction. Your agent will need to check the property and then start marketing it before you complete so that you can get tenants in as soon as you take ownership.
What does an agent do exactly?
An agent’s role covers three areas: pre-occupation, property management, and re-sales.
• Collecting keys and documents from the developer
• Property inspections, dealing with snagging issues, safety checks and utility meter readings
• Providing legal advice and dealing with compliance issues before letting
• Arranging furniture delivery
• Marketing the property, conducting viewings and negotiating price
• Performing background checks on tenants
• Writing up tenancy agreements
• Keeping an inventory of items
• Taking deposits and managing the owner’s UK Tenancy Deposit Protection Scheme account
Property management tasks:
• Collection of rent and payment to landlord
• Ensuring bills and service charges are paid
• Acting as customer service rep for tenants
• Inspecting the property at the end of a tenancy and agreeing deductions from deposit when required
• Marketing the property when a tenancy ends, or arranging the sale of the property
The importance of snagging
Snagging is a building term which simple means searching for any problems that need to be resolved before paying the final instalment to a builder. Typically, snagging will include decorating issues, plumbing, flooring, loose switches, quality of finish on tiling, and problems with kitchen units or appliances – although it covers everything. It is always easier to get a developer to fix problems before completing the purchase.
When does a property need furnishing?
Most people who rent do not own a great deal of furniture, so providing furniture helps to secure tenants quickly – you can always put the furniture into storage if a tenant does not require it. Furniture includes beds, wardrobes (although fitted is the best solution), armchairs and a dining table. Always ensure there is space for personal belongings and small items of furniture, as many tenants will have a few items of their own.
International investors can currently find some fantastic deals in the UK thanks to the weak pound, but managing a property from overseas is a complex task. Speak to Surrenden Invest to discuss your needs today.