HCH Financial Services will offer access to a comprehensive range of holiday let mortgage products, in addition to providing all types of life insurance, will writing, and other services.

Holiday Cottage Handbook shares valuable free education with short-term rental hosts, property managers, and industry professionals. Since launching in September 2023, the platform has built a highly engaged audience through its weekly podcast and newsletter.

HD Consultants is an award-winning, multi-adviser firm operating across several markets, including holiday lets, residential mortgages, buy to let, commercial finance, bridging finance, equity release, life insurance, wills, and estate planning.

HCH Financial Services aims to cater for the buoyant holiday let sector in the UK – which has experienced rapid growth in recent years.

James Varley, Founder, Holiday Cottage Handbook, said: “We are delighted to launch HCH Financial Services in partnership with HD Consultants. Over the last three decades, Howard Reuben and his team have developed an award-winning service that is renowned for delivering outstanding value for its clients.

“This new partnership will specifically cater for holiday let investors – a sector of the market we are dedicated to supporting with valuable free education, including tips, trends, and best practices. We are certain our growing audience will find exceptional value in working with HCH Financial Services.”

Howard Reuben, Owner, HD Consultants, said: “Combining James’s expertise and experience as a property investor in the holiday let sector, and his outstanding knowledge and skills in the world of publishing and media, together with the sector specific knowledge that my team of qualified, trained, and professional mortgage and insurance advisers provide, we are excited to unveil HCH Financial Services.

“This alliance is founded on a common objective to help, support, guide, and plan a holiday let property and finance strategy for our clients. We’ve been a company of advisers for more than 30 years and we prioritise long-term relationships, starting with arranging finance and continuing with regular reviews and advice.”

To support the new brand, Holiday Cottage Handbook has launched a new podcast series dedicated to holiday let mortgages. The monthly HCH Mortgage Podcast will keep investors, hosts, and property managers informed about the latest products and highlight case studies. Click here to watch the first episode on YouTube.

Samantha Turmaine will be heading up HCH Financial Services. A specialist mortgage adviser with a wealth of experience in the finance and property sectors, Samantha will be a regular guest on the new podcast series.

“I am excited to join Howard and the HD Consultants team, embarking on a partnership with James and Holiday Cottage Handbook to introduce HCH Financial Services,” said Samantha.

“This collaboration reflects our ongoing commitment to enhancing services and expanding our range for both current and prospective clients – which is testament to our market-driven approach.

“With more than a decade of expertise aiding holiday let purchasers and current owners, my experience spans first-time buyers, first-time landlords, and the occasional second home renter, all the way through to seasoned landlords managing multiple properties. This positions me perfectly to assist clients in securing tailored solutions while offering comprehensive financial guidance.”

The post The New Home for Holiday Let Mortgages: HCH Financial Services first appeared on Property Insider.

• Amid European economic uncertainty related to the stock market and traditional real estate, fueled by inflation and the Ukraine conflict, investors are shifting their focus to vacation home properties in South West Europe. The growing appetite for a remote premium and luxury lifestyle contributes to their decision.

• Costa del Sol, Spain, recorded the biggest growth in foreign investment last year, outperforming established markets in the holiday property sector, such as Cote d’Azur. Portugal’s regions have emerged as a fresh option for second home and vacation property investments, providing a robust alternative to Costa del Sol.

Directimo, the proptech European start-up pioneering data-driven insights and buyer-centric guidance into vacation home markets, launches its first comparative market report analysing the landscape of investments in Europe’s premier destinations for second homes and vacation properties.

The comparison refers to the South West European vacation home markets and reveals that, at the end of August 2023, prices on some European islands have risen by up to 30%, while in Costa del Sol, the most sought-after destination on the mainland, annual growth is 11.7% across the region.

Main insights, according to Directimo research

Costa del Sol, in Spain, witnessed a 22% increase in foreign investment in 2022, driving an impressive 11.7% capital growth. The trend continued during the summer of 2023, with an average property value increase of 2.9% for the last three months. Strong Airbnb occupancy rates in the area provide an additional opportunity for rental income, reaching up to a net 5%. This results in an annual average return on capital of 17%, with the potential to reach as high as 20% in new developments.

Portugal‘s regions have consistently emerged as an appealing option for second home and vacation property investments, presenting a robust alternative to Costa del Sol. Notably, Faro (Algarve) witnessed an impressive 13% capital growth, while the Lisbon area experienced stagnation.

Historically a very attractive area for premium and luxury vacation homes, South France is in a turning point where it needs to demonstrate the ability to continue to attract new projects and investors at the same pace as other European regions, while ensuring a double-digit return on capital. Between July 2022 and June 2023, the PACA region (Provence Côte d’Azur) saw an average capital growth of 3.75%, amidst an 18.8% decline in trading volume.

Italy is facing a significant national challenge in terms of demographic decline, exerting substantial pressure on residential and vacation home prices, which continue to decrease. Nevertheless, renowned areas like Como are leveraging their prestigious status, experiencing a 5.2% capital growth rate over the past 12 months.

Investing in vacation home properties on the islands

According to Directimo’s research, Spanish and Portugueseislands lead in capital growth, with 12.4% annual growth rate in the Balearic Islands and 13% in the Canary Islands. The most attractive island from a capital growth perspective remains Madeira, with a 15.9% increase during the last 12 months.

Sassari, situated in northern Sardinia, joins the ranks of the island areas that have delivered investors an average double-digit growth, in addition to any rental income.

The main challenges in the islands remain the limited number of new developments and accessibility, while offering strong investment opportunities.

Willy Dicu, Managing Partner at Directimo, states: “The demand for premium and luxury vacation properties and a buyer-oriented end-to-end concierge service is a reality substantiated by facts and figures in our research. We guide investors and second home seekers through the dynamic landscape, using our integrated insights and expertise to instil confidence in their decisions. Our coverage today includes Costa del Sol, Lisbon, Algarve, and Madeira, with expansion in progress for the Balearic and Canary Islands.” 

Matei Malos, the company’s Head of Product & Research, adds: “We synthesise vast amounts of data into actionable intelligence, providing a roadmap for both individual vacation home buyers and institutional investors. Our innovative methodology revolves thus around a deep understanding and fine-tuning of our customers’ requirements, in the context of a comprehensive market analysis.”

The research is available here*.

The post Key Strategic Shifts in the European Vacation Home Market first appeared on Property Insider.

Current figures from Knight Frank show that demand in London remains strong and the number of new prospective property buyers registering in the UK was 10% above the five-year average in February and the number of offers accepted was 42% higher.

The prime central London property market in particular far outperforms any other in the UK when it comes to international buyers, with recent statistics from Barclays showing that almost half of all purchases in the UK’s capital city are now made from overseas.

In the wake of a global pandemic and economic and political uncertainty, the London property market has continued to prove its resilience in the face of adversity by drawing in prospective buyers from across the globe.

Leading UK property developer, SevenCapital delves into the top four ways London continues to attract international buyers:

1.Long term capital appreciation

Property prices in London have grown considerably over the last ten years, with data from Land Registry showing the purchase value of the average residence in the capital city has grown by over 66% since 2013, increasing in value from approximately £322,324 to £535,212. 

With house prices showing no signs of faltering, and with property always considered a relatively safe investment, the London property market offers a strong outlook for long term capital appreciation, despite concern regarding current UK market conditions.

2.Strong rental yields

With demand continuing to outweigh supply, rental price growth remains at a record high, with average rents in prime central London rising by 17.8% year-on-year in October 2022, and prime outer London a comparable 15.4%, according to Rightmove.

The average gross rental yield for prime central London for October was 3.72%, the highest recorded since 2011, while in prime outer London it sat at its highest since 2013 at 3.74%.

Looking ahead to 2023, these findings are further supported by recent figures from Savills which show that London remained the region with the greatest annual rental growth at 14.2% in March 2023.

For those looking for to put their money into property, London continues to be a sure bet in the rental yield stakes with the average property asking rent in London sitting at £2,343 pcm at the end of last year and strong demand for rental properties still dominating the capital in 2023.

3. Strong demand for the British education system

According to figures from Erudera, the UK is the second most popular nation for international students worldwide, with over 679,970 international students opting for the UK in 2022. In fact, University College London has the highest number of international students, both from EU and non-EU countries, with a total of 24,145.

The British education system has a lasting reputation of having one of the highest education standards globally, something which continues to draw in international buyers looking to capitalise on the crème de la crème of higher education.

4.Desirability of London as one of the top global finance, business and cultural centres

London and the UK continue to excel on a global stage in innovation and sustainability – ranking as joint first for its world’s leading financial centre in figures by the City of London Corporation. With over 40% of the City of London’s workforce coming from overseas, it shows no signs of dwindling in popularity with international buyers.

For tourists, London also continues to prove popular with global visitors with figures from VisitBritain forecasting a total of 35.1 million visitors in 2023, 18% higher than 2022 with a combined estimated spend of £29.5 billion.

With world class brands, 96 Michelin stars across 74 restaurants and enviable retail, leisure and cultural pursuits, as well thriving a financial business centre, London continues to draw in buyers from far and wide – something which will continue to have positive repercussions for the city’s international appeal and buoyant economy.

Buying and investing in the London property market has always been a popular choice for international buyers and we expect this to endure as it continues to prove its strength and resilience in the latter half of 2023 and beyond.

SevenCapital has been making significant moves into London over recent years, with a number of high profile residential-led sites in the pipeline, including, notably, its joint venture partnership with MARK on the £500m development at 100 West Cromwell Road in Kensington. Find out more and register for updates on this fantastic development.

For more information on SevenCapital visit www.sevencapital.com

The post London Continues To Draw In International Buyers first appeared on Property Insider.

The UK’s Purpose-Built Student Accommodation (PBSA) sector is continuing to go from strength to strength, according to global real estate adviser Savills. A shortage of supply combined with rising student numbers has resulted in strong rental performance, with over 7% growth forecast for 2023/24.  

1 million applicants expected by 2030

The latest UCAS application data reveals that the number of students starting their undergraduate degree has topped 600,000 for the second year in a row – with  618,000 starting in 2022/23 and 622,000 in 2023/24. This equates to a first year cohort larger than the population of Sheffield looking for accommodation each year.

Even more growth in demand is expected, with UCAS projecting that the UK could reach 1 million university applicants in 2030, which will place existing PBSA stock under even greater pressure.

Graph 1: Total undergraduate population is forecast to surpass 1.75 million

Source: Savills using HESA, UCAS (the projections allow for a dropout rate of 6.5%pa, the average over the past 5 years)

“The UK remains one of the key global destinations for students looking to study abroad. There are currently more than 600,000 full-time international students, up from just over 400,000 five years ago, according to figures from HESA. While there has been a fall in EU students in the wake of Brexit, this has been more than offset by significant growth in the number of students from India, as well as continued strong numbers from China and elsewhere,” says James Hanmer, Head of UK PBSA Investment and Co-living, in the Operational Capital Markets division at Savills.

“We know that strong application figures from these countries are a huge positive for PBSA demand: international students are 60% more likely to live in PBSA than domestic students, with those from India more than twice as likely.”

Significant shortage of stock in some markets

Regulatory and tax changes have seen the number of buy-to-let mortgage redemptions reach over 300,000 since 2017, and as a result there are currently 31% fewer 5+ bed properties listed for rent in Q1 2023 compared with the pre-pandemic average.

This creates an even greater need for PBSA, and yet the total pipeline of new stock is only 144,000 beds nationally (on schemes with at least 20 beds), according to Savills analysis of data from Glenigan, with only a quarter of these under construction. As a result, occupancy levels are at record highs, supporting rental growth of around 7%, according to Unite and Empiric, which is expected to drive continued strong investment returns over the coming years.

Savills PBSA Development League Table indicates particularly strong development opportunities in Canterbury, Durham and Glasgow (around the University of Glasgow), all of which have seen strong growth in their student populations, with the former two also seeing rising applications, which will put pressure on existing stock. They have been promoted to First Class in the Savills league table, joining Bath, Birmingham, Brighton, Edinburgh, London, Manchester, Oxford and St Andrews, all cities with very high student demand.

Southampton, Bournemouth and Cambridge have moved up to the Upper Second tier of the Savills league table, as rising student numbers put pressure on existing stock and with a relatively limited pipeline of new schemes to meet those increases.

Investment activity remains strong despite the challenging backdrop

In spite of the weaker macro-economic backdrop, which saw overall real estate investment in the UK down by -14.2% in 2022, PBSA bucked the trend with a record-breaking £7.8 billion of stock traded – an increase of +89% on 2021 figures.

Over the past three years, 82% of investment in UK PBSA has come from overseas, with investors from USA and Singapore accounting for 47% and 24% respectively over this period.

While investment has been limited to date in 2023, activity is expected to pick up in the second half of the year, supported by rising rents, which are offsetting the challenges faced, including operational cost increases. Savills recent European Living Investor Survey found that around two-thirds of investors are looking to deploy more capital into PBSA over the next three years. Of investors looking to expand in the sector, close to a fifth expect to deploy more than €500 million by 2025.

“The current supply and demand dynamics create a compelling opportunity for investors to deliver much-needed new PBSA, in particular to target the growing domestic student population. The underlying student growth demonstrates the long-term demand for PBSA and underpins the attractiveness of investment in the sector,” comments Richard Valentine-Selsey, Head of European Living Research & Consultancy at Savills.

“While build costs increased significantly over the past two years, reaching just under 10% in 2022, putting pressure on the deliverability of some schemes, the latest forecasts suggest that the worst of the price rises are behind us. Tender price inflation is forecast to fall back to just 2-3% per annum for 2023 and 2024, which should bring some confidence and increased viability back to the development of new PBSA stock.”

Savills latest research also highlights that despite economic environment and implications of higher interest rates, early indicators from the debt market in 2023 reveal that demand from lenders to finance both development and investment opportunities in the PBSA sector remains strong, particularly for quality projects and strong sponsors.

Charlie Bottomley, Director in Savills Debt Advisory team, said, “All lenders, including banks, insurance companies and debt funds, are showing considerable appetite for the sector, as they recognise its resilience and strong rental growth performance. Interestingly, the increase in base rates has created a convergence of pricing between bank and nonbank lenders, particularly for development finance. For a marginal increase in all-in debt costs, non-bank lenders are offering a meaningful increase in leverage, which typically results in a positive impact on equity IRR”.

The post Investor appetite for student accommodation remains strong, as the UK expects to hit 1 million university applicants a year by 2030 first appeared on Property Insider.

UK nationals are turning to the Dubai housing market as a ‘safe’ and ‘lucrative’ investment, according to two Dubai-based property specialists from the UK.  

The globally high rental yield in Dubai (5-13%), a buoyant development sector and broad spectrum of off-plan properties with higher capital appreciation, plus visa reforms in the country are making it an attractive prospect for investors. 

Over a decade of property experience both in the UK and in Dubai has led Carl Wilday and Benjamin Stafford to be so confident in the opportunities that Dubai has to offer UK investors, particularly buying off-plan, that they have set up INICIO http://inicio.ae/ a new, Dubai-based real estate firm, to meet the demand. 

According to figures published in Arabian Business, the UAE property market and particularly that in Dubai saw record-breaking transaction numbers over 2022, with over 97,000 property transactions totalling €67.38bn. 

Another study by real estate professionals in Dubai cited that UK buyers made up 21% of all transactions in 2022, with the trend set to continue in 2023. The UAE economy is strong and set to grow by a predicted 2.5%, and house prices, it’s argued by some could continue to rise by up to 25% making it a great time to invest.  

Off-plan purchases in the country are rocketing, as investors look to capitalise on the growing market. According to recent reports, off-plan transactions in Dubai experienced a 90 per cent year-on-year (YoY) increase in January 2023, with the total value increasing by 130 per cent. This marked the highest volume and value for off-plan transactions recorded during the first month of the year in the city since 2012. 

INICIO has officially launched in the UAE in March 2023 and was set up to meet the growing demand for off-plan property investments from UK investors. It introduces a portfolio of projects from some of Dubai’s leading property developers including Select Group, Omniyat, Sobha, NSHAMA and DAMAC. 

Commenting on INICIO and the rise in enquiries from UK investors, co-founder and chief executive Benjamin Stafford said: 

“The real estate sector in Dubai is booming thanks to visa reforms, easy accessibility, and a consistent rise in tourism. I’ve been working as a real estate consultant here for several years, and right now, the number of enquiries I’m getting from UK investors in particular is unprecedented. It’s not hard to see why, some studies argue that property prices could increase by as much as 20-25% each year, that’s an attractive prospect for an investor, plus the rental returns are much higher than the global average.  

 “It’s being driven by a number of factors in my opinion. Firstly, there’s uncertainty among experts about what will happen next with UK house prices. Many predict the market to cool off further and for prices to take a downturn as interest rates and inflation have a continued influence on the housing market.  

“Brexit has meant that buying property in Europe is much more difficult, driving investors to look further afield. 

“In contrast Dubai is both a safe and lucrative alternative in my opinion. Even though some would argue that the property market in Dubai is slowing, it’s still following that upwards trajectory which for an investor is the most important factor. There’s a real opportunity for those who want to invest but aren’t confident to buy in the UK or Europe right now. It’s backed by a strong economy and visa reforms which have made purchasing property here much easier. 

“There is a buoyant rental market in Dubai too. It’s estimated that the city’s population will rise from today’s 3.5 million to 5.8 million by 2040 which means it will never be difficult to find tenants.” 

Taking its name from the Latin word for ‘inspire’, ‘start’ or ‘beginning’, INICIO strives to bring a new standard of excellence to the real estate industry in the UAE. It offers a suite of services, including residential and property sales, property management and real-estate investment advisory services.  

INICIO’s services are designed to cater to a diverse range of clients, including individual investors, institutional clients and property developers. Its investment advisory services will help clients to identify and capitalise on lucrative investment opportunities in the real-estate sector. The company’s founders aim to bring a fresh perspective on the UAE real estate market, using their friendly and hands-on approach to provide investors with a solution to navigate the UAE market with ease.  

Dubai also witnessed a 97 per cent growth in tourism last year, of which Western Europe accounted for 21 per cent. With an increasing number of visitors to the city, many are opting to invest in this attractive destination by purchasing property. According to INICIO, anticipated demand for off-plan property will come from a variety of international markets, with the United Kingdom (UK) being one of the main drivers of business initially alongside Eastern and Western Europe, India and China. 

Co-founder of INICIO, Carl Wilday added. “Dubai is the tourism destination of choice for visitors from across the globe. Operating in this ever-evolving city, with an abundance of new developments in the pipeline, we look forward to being at the forefront of this growth trajectory and offering our expertise to meet and exceed expectations. 

“Our aim is to establish trust and an ongoing relationship with our clients. We’ve both had hugely successful careers to date, we’ve both been through the process of buying property in Dubai. We know the market; we understand the bureaucracy and we really feel there is a massive opportunity for a British-owned company to provide a next level of service for UK investors – one founded on integrity and offering a human voice at the end of the phone. With 2023 being dubbed ‘the year for off-plan’ in Dubai, we believe there’s never been a better time to invest.” 

For more information about the company’s services and its operations in Dubai, please visit the company’s website at https://inicio.ae or contact the company directly via email at enquiries@inicio.ae.  

The post British Property Investors Turn To Dubai first appeared on Property Insider.

According to leading UK property developer SevenCapital, urban regeneration is a signpost of future growth and demand, resulting in amenities that improve the local area, attract new residents and boost property prices.

From the regional epicentres that are leading the way with long-term masterplans to emerging towns that are spending millions on vital infrastructure, here’s five key locations which are top of the class for homebuyers and property investment in the UK for 2023:

Birmingham

Recently crowned ‘City of the Year’ at the Estates Gazette Awards 2022, Birmingham has seen unprecedented regeneration over the last 20 years, with notable projects including the Bullring, New Street Station, Grand Central and the West Midlands Metro Line.

At the heart of the city, Paradise journeys towards completion, following in the footsteps of Snowhill – the largest speculative office schemes outside of London delivering over 120,000 sq ft of retail and leisure space, 1.74 million sq ft of office space and three new public realms to the city.

Meanwhile, Digbeth continues to experience substantial investment including Birmingham Smithfield – a £1.9 billion project that will transform large parts of the area into mixed-use office and commercial space, residential units and public space. It has been announced as the new home for Peaky Blinder’s Digbeth Loc. Studios, whilst also gearing up to welcome MasterChef HQ in 2024.

As the host of the 2022 Commonwealth Games, Birmingham not only showcased its transformation to the world, but also benefitted from an additional £700 million of investment spread across numerous suburbs as a direct result of the Games. Having now been named the host of the 2026 European Athletics Championships, the city will continue to demonstrate its ability to host major events as it takes to the stage in front of a global audience once again.

There is still more to come for the city as one of the UK’s most well-known projects edges closer to completion – High Speed 2 (HS2). While the benefits of HS2 for Birmingham will be wide ranging, it’s expected that this new rail line will completely revolutionise the local property market, delivering unprecedented demand from homebuyers looking for cheaper alternatives to the capital and supporting thousands of new jobs. 

Bracknell

Bracknell has seen a vast array of urban regeneration over the last 10 years or so, with the appeal of property for sale in Bracknell steadily increasing as a result.

Headlined by the completion of The Lexicon shopping centre, the £770 million ‘Bracknell Vision 2032’ regeneration project is one of the UK’s most ambitious multi-phase schemes designed to rejuvenate the town and cater to increasing demand for property within the London Commuter Belt. 

Encompassing over 160 new retail shops, bars and restaurants, The Lexicon was awarded ‘Development of the Year’ at the 2018 Thames Valley Property Awards. The next phase, known as The Deck, will serve as an entrance to the Lexicon and become the new ‘leisure quarter’ from 2023, designed around a newly landscaped public space and home to Bracknell’s existing Hollywood Bowl.

As part of this ambitious regeneration scheme, eight core buildings and six place-making squares have been created to hold outdoor events and activities; whilst £6.5 million has been dedicated towards improving highway infrastructure with 3,800 extra car parking spaces helping to draw more visitors to the town centre. This has ultimately contributed to Bracknell’s popularity – particularly with first time buyers – skyrocketing in recent years.

Leeds

As one of the most exciting property hotspots in the UK, Leeds is one of the fastest growing cities in the country in terms of local economy, which is having an incredible impact on the population – enticing nearly 10% of those leaving London annually since 2018.

One of the major regeneration projects includes the recently completed £161 million revamp of Leeds City Station. As a major transport hub for the city and Northern England’s busiest station, this regeneration project saw platforms lengthened, a new concourse and platform as well as improved trackwork to increase the reliability of trains. Additional works, due to start construction in 2023, include the creation of a station district, and upgrades to the surrounding public spaces.

The ‘west end’ of the city is also set to receive a facelift with a new £270 million development. After almost a decade of planning, a developer is now in place to help deliver the 2.8-acre ‘Lisbon Square’ site which will include residential apartments, hotel facilities and mixed-use office space.

It’s expected that ‘Lisbon Square’ will play a major role in helping Leeds double the size of the city-centre and boost the wider city’s economy, while delivering an attractive public space.

Finally, £18.6 million has been secured by Leeds City Council from the ‘Getting Building’ fund, which will be spent on three new regeneration projects. Around £8 million will be spent on transforming City Park in the South Bank, while £7.4 million will go towards redeveloping Temple Green Park and Ride, closely followed by £2.6 million being spent on renovating older homes in the Holbeck area of the city.

Liverpool

Like many areas of the UK, Liverpool has undergone extensive regeneration over the past 20 years, transforming it into one of the UK’s leading business destinations and placing it as the top city for computer science research with the one of the fastest growing tech sectors in the UK – coming second only to the West Midlands.

According to Regenerating Liverpool, the city’s most iconic regeneration schemes have collectively been valued at an impressive £14 billion, including £960 million dedicated to LiverpoolONE outdoor shopping centre which attracted big name retailers such as Harvey Nichols. The scheme has been credited as the catalyst for numerous further redevelopment projects and economic growth since it launched in 2008.

Other major regeneration schemes includes Knowledge Quarter, a £2.2 billion inner city project that helped develop Liverpool’s world-leading health, technology and science innovation hub and elevate the city’s economic status in line with London and the South East. Thanks to this regeneration, the area now boasts the Royal College of Physicians, three universities and the Liverpool Science Park, housing over 120,000 square feet of space.

Liverpool’s future is an exciting one, with the first phase of the 30-year Liverpool Waters regeneration scheme launched in 2018 with many more to follow. This £5 billion project will be comprised of five distinct neighbourhoods across two million square metres of land and will redefine the historic waterfront into business, residential and leisure space.

With the added improvement of the city’s road network, as well as upgrades to its train stations, Liverpool’s ever growing urban regeneration is set to further increase its appeal as a place to live and invest.

Slough

Once one of the lesser-known locations on this list, Slough has transformed itself into a property hotspot after a substantial regeneration scheme worth nearly £3 billion. The Heart of Slough project is already well underway, transforming large parts of Slough and breathing new life into the area.

Following the development of The Curve – a now iconic multipurpose facility and cultural hub in the town centre, comprehensive plans to continue regenerating the area have been submitted, including a complete replacement of the Queensmere Observatory shopping centre to breathe new life into the high street.

With a site spanning nearly one million sq ft of office space and 500,000 sq ft of retail units, the proposed plan will likely elevate the town further up the list of best commuter towns.

As of May 2022, Slough’s train station now sits directly on the new Elizabeth Line, providing a welcomed extension to Slough’s existing train connections to London Paddington, with residents now having access to other key London employment hubs such as Bond Street, Liverpool Street and Canary Wharf.

In fact, nearly 46% of homes in Slough are said to be let to people leaving the Capital, with property prices up to 16% below the South East average and up to 45% less than London.

By buying a property in an emerging location which has plenty of planned urban regeneration or nearby amenities, house hunters can typically benefit from lower property prices initially from the growth in property value that occurs naturally over time as regeneration takes place. In the long-term, these projects improve local areas, but also add unprecedented value to property.

For more information on SevenCapital visit www.sevencapital.com. 

The post Top Five Urban Regeneration Hotspots in the UK 2023 first appeared on Property Insider.

While the big northern cities like Manchester, Liverpool, Leeds and Sheffield are better known as northern locations to invest, here are five lesser known places in the north that we think property investors should consider.

Doncaster

In property they say location is everything. And not many places in the north are better connected that Doncaster. As well as being slap bang on the east coast main railway line it’s also slap bang in the middle of the north’s motorway network, making it very attractive for the logistics/distribution sector and the jobs that go with it. It also has its own airport, which has ambitious plans for expansion.

Property prices: Low. The £50,000 investment property is still a reality.

Warrington

A one-time 1960s new town, Warrington’s population has almost doubled to that anticipated to reach around 200,000. The town is a focus for modern industries, including logistics, science and technology with Omega Business Park being one of the largest development sites in the country.  The town has enjoyed one of the highest levels of economic growth in the UK in recent years.

Property prices: Above north west average, good value compared to comparable cities in south.

York

The city of York scores highly in most surveys of the best places to live in the UK. It also has a severe shortage of places to build new housing …. which bodes well for those investing here. It has a booming tourist industry (seven million visits annually) and is in the ‘top 20’ most popular cities for foreign tourists visiting the UK.

Property prices: Above Yorkshire average, cheap compared to comparable cities in south.

Preston

Preston is Lancashire’s main regional centre for business and employment, and is very well connected both by motorways and the west coast main line railway. Something that isn’t always appreciated by investors is that it is a major student city – with around 33,000 students UCLan is one of the country’s largest universities. There are also ambitious plans to regenerate the city centre.

Property prices: Low.

Huddersfield

Hudderswhere you might ask. Famed as the birthplace of Harold Wilson and Rugby League, Huddersfield benefits from being right on the M62 transpennine motorway and has particularly good rail links to both Leeds and Manchester. The local economy benefits from its university – popular with students seeking an inexpensive place to live and study – which now has 25,000 students.

Property prices: Low.

The post Five Northern Towns Property Investors Should Consider first appeared on Property Insider.

With this in mind, it is no surprise that the number of overseas landlords is at a five year high, now surpassing 184,000. This climbing amount of investment is a significant driver behind UK property prices, which have surpassed £300,000 for the first time in history.

However, all good things must come to an end, and with the Stamp Duty holiday concluding in September, will the recent surcharge change perspectives amongst overseas investors?

What is the Surcharge?

Since April 2016, on top of standard Stamp Duty Land Tax (SDLT), investors have been required to pay a further flat 3% Stamp Duty on the full value of all additional properties worth more than £40,000.

However, the UK government has also implemented a 2% surcharge for overseas investors. This surcharge will be in addition to the current Stamp Duty rates and will be applicable for the majority of international buyers, including both overseas investors and international companies. The government has been clear as to who will be exempt from the surcharge, predominantly those involved in Real Estate Investment Trusts and other collective investment vehicles.

The surcharge is largely being introduced in response to UK property’s upward trajectory for the past 20 years, the majority of which has been underpinned by international investment. This level of growth – bar momentary dips – has made it increasingly challenging for first-time buyers in the UK to get on the property ladder, hence the surcharge. 

What Does this Mean for Overseas Investors?

When this additional surcharge was announced in 2016, many experts anticipated a surge in overseas buyers investing in UK Buy-to-Let property, followed by a sharp fall. While international investment remained strong in the years leading up to 2020, the additional uncertainty surrounding Brexit and the pandemic was almost guaranteed to discourage overseas investors.

However, the Stamp Duty Holiday has not only propelled the UK property market, but also dissolved the majority of concerns surrounding Brexit. With the relatively positive results we’re seeing across post-Brexit Britain, combined with the continued growth arising from the Stamp Duty Holiday, the potential growth of UK property could significantly outweigh the overseas Stamp Duty surcharge.

But as government incentives end and the full effects of the Stamp Duty surcharge are felt in full effect, will UK property remain a long-term investment choice for overseas investors?

Opinion

Andy Foote, director at SevenCapital, comments: “Although we’ve known about the surcharge since 2016, the whirlwind of 2020 overshadowed it to some extent. But now it is in full swing, investing in UK property will inevitably be more expensive for non-UK investors.

“Considering the standard rate, combined with the surcharge, overseas investors could face extra payments they hadn’t considered within their property investment planning.

“That said, the performance of the property market over the past year, combined with its forecasted growth, still positions the UK as a high-performing, affordable property hotspot in comparison to alternative countries.

“Not only has the average property price surpassed £300,000, but rental yields are creeping up across the country. While the average UK rental yield currently sits at 3.53%, emerging areas, such as Bracknell, are reaching 4.80% for two bed apartments.

“Offering a passive income of up to £1,103 a month and £13,236 annually, it’s unlikely that this Stamp Duty surcharge will deter overseas investors, with the potential for 14.5% growth in prices by 2025 only offering more incentive to invest in UK property.”

Between Brexit, a global pandemic and extensive tax changes, the UK property industry has seen it all. The market’s resilience alone offers investors the reassurance that property is a sturdy investment, and with this growth forecasted to continue, the Stamp Duty surcharge is seemingly a small price to pay for a potentially lucrative asset.

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Edward Aldersley, CEO of prime property investment specialists, Aldersley London discusses why the market is likely to pick up and why that means now is the perfect time to buy Prime:

They say what goes up must come down. But where the property market is concerned, particularly in Prime Central London, what comes down usually bounces back even higher.

We’ve been experiencing a period where sold prices have dropped, especially over the past year with the effects of lockdown and the pandemic. And this is understandable; people have been ordered to stay at home, business has seen a – perhaps temporary – move away from the office in favour of remote working, travel has stopped, so the footfall in London has, naturally, reduced significantly.

As the world’s top financial centre behind New York, the effects of lockdown and, arguably the considerably faster growth of house prices over the decade prior to that, London was bound to take a hit.

The knock-on effect across Prime Central London has been a noticeable drop in prices, – 10% on average according to recent research. Although this has not been across the board – there have been some postcodes that have bucked the trend, likewise, there have been prime areas that have suffered more significant price drops – reportedly up to 40%.

But is this likely to change? According to Savills, the outlook is far rosier than we’ve seen recently. Their latest UK residential market forecast predicts a relatively modest, yet positive 3% growth across 2021, rising to 7% growth in 2022 and 21.6% growth on average over the next five years.

Why? Because activity in the market is gaining pace and is likely to escalate in line with increased economic and general activity as we emerge from the pandemic. This means more competition in the market, which is what was lacking certainly at the start of the pandemic.

Prime property in central London is often seen as an investment as well as a home purchase, due to its significantly higher capital growth potential. So when the prices lower, this makes the market an ideal market to buy.

You’d be forgiven for thinking there has been little activity over the past year, however the reality is to the contrary.

Savvy investors, which most high net worth individuals are, tend to follow a similar school of thought as Warren Buffet when he famously said investors should be “fearful when others are greedy, and greedy when others are fearful.” In other words, with prices at a lower point, it makes for the perfect playground for buyers – or a buyers’ market.

While the prices are down, the potential for growth is at its fullest. So market activity has skyrocketed over the latter half of 2020 and into 2021. Chestertons Head of Sales Cory Askew has noted that new buyer registrations for the Prime Central London market have increased 13% since February, with viewings also increased 23%. And at Aldersley London, we’ve certainly just had our busiest quarter to date since our launch in 2016, with circa 40% increase in activity versus the same period last year.

Even with the stamp duty surcharge coming into force for overseas purchasers, it’s unlikely to be a deterrent to buyers regardless of where they are in the world, because UK property as a whole, even prime central London property, remains one of the more affordable markets to invest into when considered against comparable markets across the globe.

So for those in the market to buy in prime central London, now is the ideal time.

For more information, visit the Aldersley London website.

The post Why Now Is The Time To Buy: Prime Central London Property first appeared on Property Insider.

But for investors in particular there’s another element that is equally important and that is future capital growth. One sure-fire way to try and maximise the potential of your property is through investing in a good property in an area which is subject to significant urban regeneration – with plans that are sustainable over the long-term.

Research previously carried out by CBRE discovered that homes close to regeneration zones attract an average 3.6% more price growth per year than properties in the wider local authority area.

So for those whose strategy for 2021 and beyond is investing in areas with the best urban regeneration programs, where should they be looking?

Leading UK developer SevenCapital has done some of the research for you to bring you its top five urban regeneration hotspots:

Birmingham

Birmingham has undergone an incredible transformation over the past 15-20 years, led by the Big City Plan, seeing £billions ploughed into infrastructure, retail, real estate and the core central area of the city.

First the Bullring had a complete revamp in the early 2000s, completely transforming the main central area of the city and establishing it as one of the best retail destinations in the UK. Since then the city’s momentum has continued to gather pace – and so have its house prices.

With ongoing major infrastructure projects – notably HS2 and the Midlands Metro Extension in the pipeline, along with the £1.5 billion Smithfield redevelopment and the upcoming 2022 Commonwealth Games, this city still has an abundance of potential still to untap.

Price growth past five years: 31.2%

Price growth past ten years: 49.2%

More about Birmingham.

Leeds

Currently one of the most exciting buy-to-let hotspots in the UK, Leeds also has a fantastic record of regeneration to thank and with £millions of investment still in the pipeline this city isn’t slowing down anytime soon.

Significant projects include a £3 million revamp of Leeds City Station, and a £270 million, 2.8-acre development in the ‘west end’ of the city – Lisbon Square, which is set to play a major role in doubling the size of the city-centre, providing a mix of residential, hotel and commercial space plus public realm.

With an increased focus on green space as we emerge from the pandemic, its circa £8 million set aside for the transformation of City Park and a further £7.4 million for redeveloping Temple Green Park and Ride are set to intensify the city’s attraction further.

Price growth past five years: 29.9%

Price growth past ten years: 49.2%

Slough

The only location in the South East in our top five, Slough was once viewed as an underdog however since work started on Crossrail in 2009 many an investor and Londoner’s attention has been drawn to this now popular commuter town – nearly 46% of homes are reportedly let to those leaving the capital.

With around £3 billion investment in the pipeline, Slough in the coming years is going to see an incredible facelift.

Key projects in the pipeline include a complete transformation of the town centre, including the Queensmere Shopping Centre which will be redesigned to include residential, 1 million sq.ft of office space and 500,000 sq ft of retail.

Whilst price growth over the past five years isn’t as high as the others on this list, with so much in the pipeline, its fantastic proximity to London and better affordability for London leavers, Slough’s prospects are set to continue an upwards trajectory.

Price growth past five years: 10.4%

Price growth past ten years: 65.1%

More about Slough.

Manchester

Manchester has seen a vast array of regeneration over the last 20 years or so which has seen investors flock to the city for affordable investments.

Already counting its £1.5 billion Spinningfields regeneration project, dubbed the ‘Canary Wharf of the North’, the city has plenty more in the development pipeline to keep investors interested.

In the pipeline is an £800 million NOMA project in the north of the city. This is followed by the Northern Gateway redevelopment – a 155 hectare site north of the city-centre that will undergo a transformation worth nearly £1 billion.

Finally, Manchester Mayfield is set to be Manchester’s first city-centre public park, integrated into a ‘world-class urban neighbourhood’ that will house both residents and small-to-medium scale independent startups.

Price growth past five years: 38.2%

Price growth past ten years: 67.6%

Sheffield

Sheffield’s major regeneration began largely with The Heart of the City masterplan, which helped regenerate Peace Gardens, the Winter Garden and St Paul’s Tower – the city’s tallest residential building.

Since then, with footfall, and demand increasing, it now has a £470 million Heart of the City II masterplan, which will focus on the retail sector, delivering a new destination for the city with ‘long-awaited commercial, leisure, retail and residential focal points’.

The 1.5 million sq.ft redevelopment will transform this area of the city into an agile, mixed-use district designed to bring in new jobs and higher investment.

Certainly a city to watch!

Price growth past five years: 26.5%

Price growth past ten years: 44.4%

Andy Foote, director at SevenCapital said: “Since London began to lose some of its shine, it’s done wonders in helping to spotlight alternative key towns and cities across the UK, kickstarting numerous significant regeneration and investment programs.

“Whereas once upon a time, most investors’ go-to might have been the capital, now there’s much more choice it can be quite difficult to work out where best to invest your money if you’re looking for the newest ‘hotspot’, because as you can see from our top five, there are multiple locations that would be worthwile.

“What is important however, and which is how SevenCapital identify certain areas, is looking for those areas which have demonstrated sustainable growth over a long period of time, which still have significant regeneration and investment plans in the pipeline.

“Birmingham always take our top spot, not for the highest growth, but for sustainably high growth, its central location and major infrastructure projects – HS2 and the fact that there is still so much investment and development in the pipeline.

“Similarly Slough, whilst its growth has been more modest over recent years, with its major revamp in the pipeline and already great connections to London only set to improve further with the imminent arrival of Crossrail, will continue to be a top choice for London leavers looking for a more affordable lifestyle without compromising on access to the capital.”

For more information on SevenCapital visit www.sevencapital.com. 

Connect with us: Twitter: @sevencapital  Facebook: SevenCapitalPlc  LinkedIn: SevenCapital

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