Category Archives: UK

5 Reasons Why Now is the Time to Invest in Plymouth

Posted on by Aspen Woolf

Plymouth is on the up with a spate of multi-million pound regeneration schemes set to be completed through 2017. It shows a high degree of confidence lies in the city, augmenting an already high quality of life in the wider South West region.

For prospective investors from both the UK and abroad, this is a very encouraging sign. Redevelopment projects sustain growth for small businesses, create jobs and provide employment stability, leading to a healthier property market and better quality of tenant.

Despite recent clampdowns on the buy-to-let sector, low interest rates should hold for a while yet. However, according to a chief UK economist Howard Archer, the Bank of England will feel compelled to raise these rates at some point. This means that, if you’re looking to take out a buy-to-let mortgage, the time to act is now.

We’ve put together five further reasons why Plymouth in particular is looking ripe for property investment this year.

 

1. Major Investment

Plymouth's transport links are undergoing a large regeneration which is beneficial to property investors.

Image credit: Nick Rice via Flickr

Plymouth is to be subject to a vast array of investment projects over the forthcoming months and years. A massive £266 million investment programme is set to transform the city centre, including the £24.6m Northern Corridor transport scheme, £13m Science and Technology hub and highly-anticipated train station revamp. A new tram-style Metro system is also being earmarked to reduce congestion.

 

2. Student Sector

Buy-to-let is always boosted by the presence of local universities and Plymouth has two of them in close proximity, as well as three prominent colleges. Students are always in need of accommodation and post-graduates are also likely to remain in the area to find work. Plymouth University is one of the largest in the country with over 20,000 students in attendance every year.

 

3. Port City

Plymouth is a port city which plays a big part in the city’s tradition, history and culture. Much of the new regeneration fund will be spent on the waterfront, primarily with the regeneration of Millbay docks, increased investment in the Oceansgate marine hub and a new £5 million cruise terminal. In 2020, the launching of the Mayflower will celebrate its 400-year anniversary, which will further boost the tourism sector.

 

4. Property Boom

Various property speculators expect Plymouth property values to rise through 2017. Despite some uncertainty post-Brexit, the market held up well and Plymouth will always attract buyers looking for a high quality of life. Foreign investors from as far away as the U.S and Japan are snapping up homes in Plymouth because they see Devon property as a sound investment. This has been reported by local estate agents Luscombe Maye, who have also reported high levels of viewings and sales early in 2017.

 

5. Favourable Rental Sector

The private rental sector in Plymouth is looking a great bet at the moment. It favours cash investors who will get more value than savers would, especially when taking advantage of Plymouth’s steady stream of post-graduates and young professionals who rely on the rental sector. As an investor, scout around for low-entry properties that guarantee healthy yields of between 7-8%, particularly near the city centre and main university campus.

 

In you’re interested in investing in Plymouth property then Beaumont Square could be ideal for you. Get in touch to find out more.
If you’re still not convinced about why Plymouth is a great place to invest right now, check out our overview of the city.

Is Build-to-Rent the Future?

Posted on by Aspen Woolf

Build-to-rent (B2R) is a subdivision of the UK’s booming private rental sector and, as the name suggests, concerns new builds designed specifically for renting rather than for sale. They tend to lie at the top end of the rental market and achieve a high volume of enquiries when eventually placed on the market.

B2R numbers aren’t as high as the government would like and so an online consultation has recently been opened to encourage authorities to plan for build-to-rent schemes, closing on 1 May this year. This is in line with a wider £1 billion fund to support private investment, planning and construction within the industry.

As a property investor, they are something worth taking a look at, especially if schemes are taking place in areas of interest to you. The British Property Federation have produced a digital map detailing current build-to-rent projects here, many of which are located around London, Manchester and Liverpool.

 

Housing Shortage

The appeal for more B2R projects echoes the greater demand for more homes across the country. Some reports suggest a staggering 250,000 new properties are needed annually to keep up with demand.

The government has pledged to build an additional 1 million properties by 2020, although this is looking increasingly unlikely with such a big national deficit and debates over green belt construction still waging on.

This is why there’s been encouragement for build-to-rent schemes, essentially as the government seek to pass more responsibility onto the private sector.

There is a shortage of homes in the UK but a high demand from homes.

 

Demand for New Builds

New properties have always been favoured by the general public, mainly because they’re constructed to the latest specifications, less likely to fall into disrepair and also designed to be energy efficient – this brings down utility bills in the long term.

In B2R accommodation blocks, facilities can include gyms, swimming pools, games rooms, communal gardens and free Wi-Fi. This will not only attract residents in the first place, but also ensure they’re happy to stay for many years.

There's a high demand for new builds as they're built to the latest specifications.

 

Rental Sector

There’s a recognition that prospective first-time buyers and young professionals are being pushed into the rental sector. Investors thus know that building homes specifically for rent is a safe investment as the demand is more resilient.

This is a view endorsed by Edward Douglas, Policy Manager at the think tank ResPublica, who says:

“Those building-for-rent can do so with more confidence that they will have customers to move in when they are finished. In 2017, we should see a huge shift towards B2R, with tens of thousands of rented homes expected to be built.”

More people are being pushed into the rental sector, creating a demand for rental homes and build-to-rents.

 

Build-to-Rent 2017

As ‘generation rent’ become increasingly likely to seek out high-quality new build accommodation, this makes build-to-rent a safe bet in 2017. Location and amenities are still the key, especially if you can find a B2R scheme in one of the UK’s buy-to-let hotspots such as Manchester, Leeds or Liverpool.

The process is made far easier if you hand control of matters to a qualified letting agent, usually part of the developer’s offer, who will find and manage tenants on your behalf.

If you’re unsure about where to invest, you might be interested in why the North is the best place to invest in property right now.
If you’re ready to invest, why not take a look at what investments are available right now or get in touch to find out more.

A New Railway Station at Plymouth Shows the City is On the Up

Posted on by Aspen Woolf

Plymouth Railway Station is to be completely transformed after securing multi-million pound Government funding.

The project comes as part of a £43.5 million cash boost for the wider South West region to help improve transport links, support local businesses and encourage growth.

 

Station Revamp

Plymouth train station will be going through a complete transformation to create a new welcome to visitors.

Image credit: Steve Jones via Flickr

The joint Great Western Railway and Network Rail proposal will see brand new shops and offices constructed, along with an open public space for improved accessibility to facilities and platforms. The current multi-storey car park is to be demolished with a new one built in a different location.

Not only is the current station in much need of a facelift, but so too is the view greeted by new visitors to the city. This is something Ian Bowyer of Plymouth City Council has noted:

“When people arrive here by rail, their first view is a 1960’s multi-storey car park and a very dated and tired impression of the city.

We want to change this and to overhaul the railway station completely. This project will provide a new gateway and the station will be designed so that the first image of the city will be of the view along Armada Way towards the sea and Smeaton’s Tower.”

 

Plymouth Regeneration

Plymouth's new train station is only one many regeneration schemes aimed at boosting Plymouth.

Image credit: Chris Sampson via Flickr

The new railway station is only part of a number of regeneration schemes centred on Plymouth and the wider Devon region. This shows that both the government and investors are confident in the area’s potential for growth.

Other local projects include Phase 3 of the Somerset Energy Innovation Centre, numerous youth education schemes and a £9.4 million cash injection in superfast broadband to help rural areas stay connected.

Overall, this brings the Heart of the South West Growth Deal, along with match funding of £115 million from the public and private sector, to a whopping £723 million in total.

 

Investment Opportunities

The regeneration schemes in Plymouth look set to boost the city's economy which will have an impact on house prices and rents.

Image credit: Herry Lawford via Flickr

The station revamp is set to act as a catalyst for further regeneration projects in and around Plymouth. The local economy will be massively boosted and SMEs given a better chance to expand. In turn, this creates new employment opportunities, job stability and higher wages.

This is a positive sign for property investors as it helps guarantee enquiries when selling and more reliable tenants if renting. Furthermore, mortgage applications are more likely to be granted in this current economic climate, especially whilst interest rates remain at record lows.

Property specialists Savills forecast that the South West will see house prices grow by nearly 30% by 2018, above the expected national average, and the chief benefactor of this growth will be Plymouth.

For buy-to-let investors, it’s worth looking into fully furnished, managed lets near the city centre for assured yields over a set period. This way, all the hassle of finding tenants and dealing with potential problems is managed on your behalf.

Beaumont Square is one such investment that provides a low-price entry route, with potential to tap into the rewarding private student rental sector. Construction has already begun at this site and is due to complete before 2018.

 

Find out more about investment opportunities in Plymouth here, or by getting in touch for a chat.

If you’d like to know more, you might enjoy our article, Why Invest in Plymouth.

Major Investment in Plymouth’s Economy is a Good Sign for Property Investors

Posted on by Aspen Woolf

Generally speaking, when a local economy is performing well, so too will the property market. In the case of Plymouth, economic indicators such as manufacturing activity and employment data are showing encouraging signs as we move into 2017.

In turn, real estate becomes a safer investment, ensuring a high-quality of buyer or tenant is more likely to stay in the area and thus enquire about property.

Investment Schemes

£50 million is being invested into a new railway station for Plymouth.

Image credit: Reading Tom via Flickr

Plymouth Council has recently announced plans to inject a massive £266 million on numerous development projects within the city. This has been aided by a £43.57 million investment as part of the Growth Fund across the South West LEP area.

A new £50 million railway station will be constructed, aided by a £4.3 million government investment, which includes new shops, offices and a modernised multi-storey car park. Likewise, a new cruise terminal is also set to receive the required council funding and could be completed by 2020.

To alleviate the lack of internet signal over the South West’s rural areas in particular, a £9.4 million investment in superfast broadband across Devon and Somerset is expected to provide comprehensive coverage by 2020.

Focusing on education, other multi-million pound projects include the South Devon College Hi Tech Centre and ‘Devon Communities Together’ youth skills scheme. £2 million will also be spent on two of the city’s primary schools to deal with an expanding population.

Post-Brexit

£2 million is being spent on Plymouth's primary schools to deal with a growing population.

Image credit: Reading Tom via Flickr

Any fears after the EU Referendum have quickly subsided in the South West as the latest Business Trends Report by business advisers BDO LLP reveals manufacturing optimism has hit a 20-month high.

Likewise, the Confederation of British Industry’s (CBI) last report shows that manufacturers are increasingly optimistic over their exporting prospects and reporting strong growth in domestic orders.

Plymouth voted strongly to leave in the referendum – 59.9% against 40.1% – meaning that any doom and gloom over invoking Article 50 isn’t likely to affect local business decisions either.

Property Forecast

Property experts predict that Plymouth’s house prices will rise throughout 2017.

Image credit: Robert Pittman via Flickr

With stable economic growth and increased investment, the local employment sector is lifted. More people are likely to stay or migrate to the area, and so more people will need somewhere to live. For buy-to-let investors in particular, this is a fantastic confidence boost.

Property experts predict that Plymouth’s house prices will rise modestly throughout 2017, fuelled by these impressive economic forecasts and increased investment. Representatives of the local estate agents’ Julian Marks, Lang Town & Country and Luscombe Maye have all remained optimistic and anticipate a return of buy-to-let investors, many of which have now adapted to the new stamp duty regulations. However, one word of warning is to act quickly whilst interest rates remain at their current low levels.

Whilst house prices in Plymouth are below the national average, there is still great demand in the lettings market as there are a vast number of students in the area. The demand for campus accommodation outstrips supply by 6-1, forcing many students to seek alternative accommodation. Because of this, one such project to consider is the new Beaumont Square apartments offered by Aspen Woolf. They’re located in a prime city centre area, guaranteed to produce NET yields of 8% for three years and construction has already begun, due to complete this year. Because the University of Plymouth and various campus buildings are located close by, you’re also ensured of student enquiries in the build-up to term time.

 

If you’d like to know more about the new Beaumont Square apartments, click here or get in touch today.
Did the mention of student enquiries catch your eye? You might be interested to know that student property investment is still hot in 2017.

Why Property Is Still the Most Lucrative Investment in 2017

Posted on by Aspen Woolf

If looking for somewhere to invest your money, it’s wise to evaluate the condition of the property market before making a decision.

Investing in bricks and mortar has long been a favoured approach by the general public, providing long-term security, ongoing rental income and equity for future investments.

This year, the question is whether real estate still holds the influence it once did, especially with concerns over Brexit and government clampdowns on the buy-to-let sector.

However, confidence in the market remains strong and experts believe that, despite external pressures, the underlying pattern of supply and demand still makes property a wise choice as we move further into 2017.

Strong Performance

Signs for buy-to-let property investors are promising for 2017.

Property experts from Capital Economics, Nationwide and Halifax all predict a rise in UK house prices throughout the year and for buy-to-let investors in particular, the signs are especially promising.

Last year, 11 out of 12 regions across the UK witnessed an increase in rental values, pushing the average monthly income to £892. A report by the Royal Institution of Chartered Surveyors (RICS) also predicts that rents will increase by 25% in the next few years.

However, as a note of caution, this positive driving force is unlikely to come from London. Despite expected growth in the rest of the UK, prime central London could even see prices fall by as much as 5% over the next 12 months according to estate agents Strutt & Parker and economic forecasters Volterra.

Conversely, the UK’s lack of homes is a positive sign for buy-to-let investors. Lack of supply means prices remain high and thus would-be buyers are pushed into the rental sector.

This is something the government are looking to address by launching a £7 billion house building program to construct up to 200,000 new properties. Investors should take note of where these new schemes are taking place for potential buying opportunities.

Markets are Riskier

Investing in stocks and shares is riskier than ever these days, while there is still security investing in property.

Despite a fair bit of scaremongering over Brexit, the property market held up extremely well after 23 June 2016. Lending for purchases within the buy-to-let market rose from 28% in the third quarter, to 38% in the fourth. This is exactly the same figure as before the Referendum and shows that real estate is still a safe bet.

On the other hand, financial markets are a lot more susceptible to volatility – as seen with the sudden drop in the pound. Investing in shares is a high-risk strategy as well, especially during this time of political uncertainty, and does not provide the short-term access to equity that property brings.

Markets require constant attention and a diversification approach that can become complicated. By investing in a managed let through a qualified agent, there’s none of this ongoing stress.

Instead, rental yields are assured over a period of two to three years and can be as high as 10% in some areas. Property also allows you to plan a long-term exit strategy, as well as providing a physical asset to leave in your will.

Points of Note

Location is important when investing in property and London is no longer the hotspot it once was.

Location is still the key to a successful property purchase. The expected 3-5% national growth in house prices will be driven by hotspots in the north-west and Yorkshire where long-term yields can be gained with low-entry point purchases.

The student sector remains strong, especially with purpose-built student accommodation becoming increasingly popular. The PBSA market is expected to have a value of £46 billion by September with nearly 30,000 new beds being added into the sector this year.

For landlords who use a letting agency to manage their investment, the chance to sit back and take in assured yields is a big draw. Combined with high demand and more people willing to rent, this makes property still the most lucrative investment in 2017.

If you’re ready to invest in property, get in touch for a chat with us today.

With London out of the picture for many investors, you might be wondering where the best places are to invest your money. South West and Northern England and Scotland are the hotspots for this year. We take a look at why 2017 is the year to invest in the North and why you should invest in Plymouth.

Three Reasons Why North Liverpool is a Great Place to Invest

Posted on by Aspen Woolf

The number of development schemes in North Liverpool, with the sole aim of improving the local area and economy, is staggering. This can only be good news for property investors.

Whenever a local economy is given a helping hand by government investment, jobs are created and house and rent prices rise as demand increases. Liverpool has been going through regeneration for a while now, but recent developments show that now is a great time to invest in the city before prices increase further.

The development schemes include a large amount of planned investment going into the local road network, and pedestrian and cycle access. This is in addition to the Liverpool Waterfront, the long-term investment of the docks, along with the potential re-opening of Lime Street train station as part of Merseytravel’s 30 year plan.

It’s thought that these will create thousands of jobs in North Liverpool as well as increasing tourism and the reputation of the city as somewhere to visit and live.

Out of all these exciting plans, three stand out, including the first new link road in Liverpool City Centre for a decade.

A New Link Road

Junction of Leeds Street and Great Howard Street in North Liverpool where a new link road will be built.

Image credit: Paul Holloway via Flickr

Potentially one of the biggest improvements investors could see coming to North Liverpool is the building of a new link road between the junction of Leeds Street and Great Howard Street down to Princes Parade at the waterfront.

The new road will cost £20 million and is being built alongside a £250 million investment scheme, the Better Roads Programme by Liverpool City Council, which includes a number of improvements to the surrounding roads as well as pedestrian and cycle routes.

It’s hoped that the new link road, which will run through the existing King Edward industrial estate, will not only improve access but will help to ease congestion and assist with the regeneration and growth of North Liverpool’s industry and economy.

This new link road will also improve access to the waterfront and the new cruise terminal.

A New Cruise Terminal

North Liverpool will be getting a new cruise terminal to serve up to 3,600 passengers at a time.

Image credit: Al Disley Images via Flickr

Liverpool Waters became a turnaround facility for cruise ships in 2012, and since then the number of vessels visiting has doubled, including the Disney Cruise Line which first called at the port in 2016. The port is award winning and was named the UK’s best port of call in both 2013 and 2014. This seems to be a title Liverpool is eager to reclaim.

A new cruise terminal is planned at Princes Parade, on the former Princes Jetty, to allow for larger cruise ships to visit, which will mean more passengers (and crew) spending money in the city and boosting Liverpool’s economy. Not to mention the jobs that will be created when building and then staffing the terminal.

The new terminal will be large enough to handle up to 3,600 passengers at a time and will include passport control, a lounge, cafe, taxi rank, pick up point and car park. A new quay will also be built along with access to allow coaches to pick up and drop off passengers.

A new cruise terminal isn’t the only investment in North Liverpool that will attract visitors.

A New Football Ground

Everton FC could be moving their stadium to Bramley-Moore Dock, North Liverpool.

Image credit: Airviews Photography via Flickr

Also potentially coming to Liverpool’s waterfront is a new football stadium. Everton Football Club are in discussions with Liverpool City Council about choosing a site alongside the Mersey upon which to build their new stadium.

The new football stadium would become a landmark on the historic banks of the river. It’ll not only attract football fans from across the country to Liverpool, it will also create jobs and increase spending in the city, all helping to boost the economy.

At the time of writing, the city and Everton fans are waiting for the announcement about the site of their new stadium. One proposed site is Bramley-Moore Dock, which was home to the Liverpool Sound City music event for two years before it was moved elsewhere for 2017. The announcement is due within the next couple of months.

Just as the economy starts to take an upward turn is the best time to invest in property. By investing in North Liverpool property now, you stand ready to reap the rewards once these developments are completed.

Eldon Grove and Reliance House, both situated just down the road from the site of the new cruise terminal and link road, are the perfect places to invest and not only gain a piece of history, but a foothold as Liverpool’s economy takes off.

If you’re interested in investing, or would like to know more, get in touch today.

For more information on what makes Liverpool such a great city, you might enjoy our 14 Fun Facts to Love About Liverpool.

Student Property Demand Rises in Liverpool

Posted on by Aspen Woolf

With around 70,000 students in Liverpool during term time, it’s no surprise that demand for accommodation is high. And with the number of undergraduate placements rising from the 2015/16 academic year, there’s still need for high-quality housing within the city.

For investors, this means numerous opportunities are available in the thriving buy-to-let sector, especially for purpose-built student accommodation.

Increasing Numbers

Student numbers at Liverpool University are increasing.

Image credit: Vita Student via Flickr

 

The University of Liverpool, John Moores University and Liverpool Hope University comprise around 60,000 students alone, an increase of around 10,000 from last year.

As well as the three main universities, there’s also the Institute for Performing Arts, School of Tropical Medicine and numerous other colleges within the city – pushing the total number of students up even further.

Research by the Mistoria Group shows that these figures have caused a 37% growth in demand for shared student accommodation within a three mile radius of the city centre.

Why Liverpool?

Liverpool albert dock

Image credit: 7426_0594 via Flickr

Developers have been quick to recognise the rise in student numbers and short supply of bespoke housing in Liverpool. With demand for high-quality accommodation growing, a number of uber-modern student developments, such as the luxurious Fox Street Village and Queensland Place, have sprung up in recent years.

With a rich cultural and sporting heritage, combined with a diverse nightlife and affordable housing, Liverpool in itself will always attract high student numbers. With its higher education institutes offering a vast array of courses, there’s no sign of the trend slowing down.

As another bonus, an increasing number of students are remaining in Liverpool once they’ve graduated. This flow of young professionals boosts the rental sector even further, especially as renters with a career-driven mindset make for high-quality tenants.

Increased government investment in the ‘northern powerhouse’ is coinciding with massive regeneration schemes in Liverpool itself. As we move further into 2017, 250 major new schemes worth £10.5 billion are seeking planning approval or at early stages of project development.

Purpose-Built Student Accommodation (PBSA)

Students studying for exam

Image credit: NEC Corporation of America via Flickr

The 560,000 rooms that make up the UK’s PBSA market are estimated to be worth £46 billion in total. This is being helped as both students and universities move away from traditional halls of residence style accommodation.

Purpose-built halls cater to the demands of modern-day students, with private bathrooms, large common rooms, strong Wi-Fi connections and even gyms in some cases. They’re especially appealing to wealthier foreign students whose parents like the idea of a secured building in close proximity to the campus.

Purpose-built halls will often be managed by a letting agency. This is a recommended route into the student sector for investors. Everything is controlled on your behalf, from dealing with student enquiries to collecting payments. Rental yields of around 7-10% are assured with a guaranteed stream of tenants every year.

 

To find out more about investing in Liverpool’s student property market, get in touch for a chat.
If you’d like to know more about investing in student accommodation, you might be interested in The Boom in Purpose Built Student Accommodation.

2017 Is The Year to Invest in The North

Posted on by Aspen Woolf

Much of the UK’s investment throughout 2017 will be centred on the northern powerhouse. The government is pushing hard to boost regions outside of the capital, meaning cities such as Manchester, Liverpool, Leeds and Newcastle will see increased funding over a range of sectors.

For buy-to-let property investors in particular, these plans can be of great significance. With a stronger local economy, higher rate of employment and better quality of tenant, the already strong northern housing market looks set to flourish even further in 2017.

Northern Economy

Views over Edinburgh

Image credit: Jon Mountjoy via Flickr

Ever since George Osbourne’s declaration of the new ‘northern powerhouse’ back in 2015, a renewed vigour has been evident in helping these regions match the draw of London.

Following a steady stream of regeneration projects since the turn of the century, cities such as Manchester and Liverpool have been transformed into hubs of major economic interest. Wherever there is space, there seems to be some sort of investment scheme taking place, be it office, industry, retail or residential.

We’ve just witnessed the second UK Northern Powerhouse International Conference & Exhibition, where over 2,500 business leaders gathered for a series of talks from public and private sector experts.

The area north of the ‘Midlands engine’ is home to over 15 million people and generates around 20% of the UK’s gross domestic product. International investment here is growing at a faster rate than any other part of the UK, whilst Theresa May has just announced a major industrial strategy for the north.

Despite some opposition, the High-Speed Two (HS2) railway line linking London with Manchester has just received final approval from parliament. When finally completed, HS3 will also greatly improve travel times between the UK’s main northern cities.

Northern Property

Bury tram

Image credit: Andy Roberts via Flickr

Property prices in the north generally sit below the national average, especially when compared to London. This means yields frequently hit the 9-10% mark, especially in areas with many students and young professionals who rely on the rental sector.

Despite the temporary uncertainty surrounding Brexit, the economy has remained resilient and at no time in the UK’s history have more people been in employment. It’s thus no wonder that the vast majority of experts such as Nationwide, MCI Mortgage Club and NatWest, feel positive about property in 2017.

There are plenty of excellent opportunities in the north, where entry prices of around £70,000 will result in strong capital growth in the long term. This is simply unattainable in London. Furthermore, estate agents Savills, has forecast that rents will rise by 2.5% across the UK in 2017.

Buy-to-Let Sector

Leeds University - there's a large student population in the north who need somewhere to live.

Image credit: Mishimoto via Flickr

The northern rental market is buoyed by a strong demand for student housing, particularly for purpose-built accommodation. Cities such as Manchester, Liverpool, Leeds and Edinburgh attract thousands of students every year, meaning you’re almost certain of enquiries once placed on the market.

To negate the traditional risks of student renting, for example damaged property or unpaid rent, many investors are drawn towards managed lets. The estate agency will take care of things on your behalf, allowing you to sit back and wait for the guaranteed yields to roll in.

 

If you’re interested in investing in the North, contact us today to find out about our opportunities.
If you’d like to know more about the potential for the northern powerhouse, check out how Property investment in the North is to be boosted by Theresa May’s industrial strategy.

Posted in UK

Now is the Time to Invest in Edinburgh as Rents Set to Rise

Posted on by Aspen Woolf

Edinburgh has been going through great change over the last decade with the installation of a new tram system. With that now complete, the focus has turned to the commercial side of the city, impacting on the residential market.

There are plans for new commercial buildings and the St James Centre off Prince’s Street is now undergoing a £850 million refurbishment, promising an influx of new jobs.

With all of this growth comes more people looking for somewhere to live. Experts are predicting rental prices to rise over the next five years, meaning that Edinburgh is one of the best places to invest in right now.

Building works taking place in Edinburgh

Redevelopment in the city centre. Image credit: Magnus Hagdorn via Flickr

A Shortage in Properties

While businesses are flocking to Edinburgh taking up old and new commercial spaces, new homes are not being built to accommodate their employees. With such a lack of residential properties for a rapidly growing city, Edinburgh’s rental market is in a state of high demand and low supply.

A recent study by property consultancy JLL has looked at the property market and building industry in Scotland. The UK as a whole is going through this shortage of homes, which has been bolstered by the latest political and economic outlooks caused by the recession and, more recently, Brexit. What makes Edinburgh different is that the city continues to grow.

Director of JLL’s Residential Team, Jason Hogg, has said:

‘Housebuilding in Scotland continues to persevere against the backdrop of political uncertainty. The industry is in a confident and optimistic mood, buoyed by strong demand for residential in key city centres.

“However, there’s no doubting that the key challenge for the year ahead is to address the shortage of supply.”

View of Edinburgh from Calton Hill

The Edinburgh cityscape. Image credit: Moyan Brenn via Flickr

What Does This Mean for Investors?

As a result of their study, JLL predicts that due to this shortage, house and rental prices will rise by 23.5% by 2021. That’s almost double the UK average and significantly higher than London by 4%.

This means that if you want to invest in Edinburgh property, now is the best time, before prices rise any further. But it also means that rents are likely to rise as people looking to buy are priced off the property ladder and demand for rental properties surge.

JLL’s study shows that by 2021, tenants will likely be paying 20% more to rent than they are now. To give you an idea of what this could be, the current average asking rent in Edinburgh is approximately £1,500 a month, so by 2021 the average rent in the city could rise to £1,800 a month.

Edinburgh University

Edinburgh University. Image credit: Alberto Garcia via Flickr

Other factors To Consider

It’s not just new commercial buildings and refurbishments, and an influx of new workers creating such demand for properties in Edinburgh. The focus on new student accommodation is also a factor.

Home to three universities and a number of colleges, Edinburgh is a hot spot for students and the past year has seen a boom in student accommodation. Some of this accommodation are  managed purpose-built flats and halls that investors can rent to students. Others are traditional individual properties that investors will adapt to create bedrooms to rent out to groups of students. This latter option often means fewer properties are available for families and professionals, again hiking up the demand.

For the property investor, this means that not only is Edinburgh a great place to invest in right now, but there are a number of options available. It’s worth doing your research and speaking to a professional agency or estate agent to make sure you’re investing in an Edinburgh property that will suit you.

If you’d like to find out more about investment options and properties in Edinburgh, get in touch with us today.
Want to know more about Edinburgh? You might be interested in our 11 Facts About Edinburgh you Might Not Know.

Liverpool’s Reliance House Development Perfect for Prime Location Investment

Posted on by Aspen Woolf

Located in the heart of Liverpool’s business district, Reliance House is set to be converted into 100 luxurious residential apartments. The project presents a fantastic opportunity for buy-to-let investors, with expected rental yields of 7-8% and long-term capital growth.

The £15 million project will be completed by Legacie Developments, providing a further boost to Liverpool’s thriving rental sector, especially in prime city centre locations.

Prime Location

Located on Water Street, Reliance House is situated just a short walk from the Waterfront with fantastic links into the city centre. Various amenities can be found on nearby Castle Street, along with upmarket bars, restaurants and cafés.

Image credit to Wikipedia. Reliance House is in the heart of the business district and close to transport links and amenities.

Image credit: Wikipedia

Reliance House is also opposite the alternative James Street railway station entrance. Although access is limited at off-peak times and closed at weekends, this is of great convenience for commuters who use the Merseyrail network.

The city centre is a proven hotbed of buy-to-let investment, with guaranteed enquiries for rented properties and a steady stream of graduates looking for jobs/accommodation. This also leads to healthy rental yields, with projected returns of up to 8% based on current market projections.

Liverpool in itself has seen plenty of investment since the turn of the century, with no signs of slowing down. An estimated £10 billion regeneration is planned over the forthcoming decade, helping modernise a city already draped with a strong cultural heritage.

Design

The Reliance House building is far bigger in size than you may expect if stood at the main Water Street entrance. The front section is made up of robust Portland stone, showcasing a strong Edwardian design that has stood up well to the test of time.

At the rear end, an impressive red brick façade adds a touch of character to the building, backing onto the picturesque Church of Our Lady and Saint Nicholas.

Reliance House has access to great transport links making it a fantastic investment opportunity.

Image credit: Wikipedia
Reliance House has great access to transport links.

 

The development will create 73 one bedroom apartments and 27 two bedroom apartments, designed to modern standards with lavish high ceilings and large sash windows.

The one bedroom apartments will comprise a large living area, with generous space for lounge, cooking and dining, as well as a study zone in the bedroom. An additional store room is also provided.

The two bedroom apartments will include two separate bathrooms, one of them en-suite. They’ll also include double-bed sized rooms and a large kitchenette area, perfect for young professionals looking to split the cost of rent.

Further Advice

Reliance House offers secure and exceptionally high-quality real estate, located in a prime spot in Liverpool city centre. A spokesman from the Legacie has said of the development:

“We saw its potential straight away, in terms of the way it looks – it has a beautiful Portland stone frontage and it’s nicely proportioned with high ceilings which give a real sense of space – and its location which couldn’t be better.

It’s right in the centre of the business district, facing India Buildings, there are great views overlooking St Nicholas’ Church gardens and the waterfront, and all the restaurants and bars on Castle Street are just a few minutes’ walk away.

From a developer’s and a buyer’s point of view, it really is a prime spot and a prime building.”

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The one bedroom apartments will typically be 499 sq. feet/46.6 sq. metres and start at £120,000 in price. Their two bedroom counterparts are 609 sq. feet/56.6 sq. metres and will range from £160,000 upwards.

The 100 available properties will be sold off-plan to both buy-to-let investors or private buyers. A £5,000 reservation fee will be required to secure your interest.

If you’d like to know more about the Reliance House redevelopment, get in touch with us.
Or for more about investment opportunities in Liverpool click here.