• 110m loughing crane believed to be largest ever used in Newcastle (High Street Residential)
• Development will be visible from most approaches into the city
• Hadrian’s Tower to be Newcastle’s tallest building (Surrenden Invest)

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

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

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

Jonathan Stephens, MD, Surrenden Invest

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

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

“We believe this will be the tallest crane that has ever been used in Newcastle. The angle of the loughing jib means that the whole structure will have a reach of 127 metres. I can’t see any reason why any of the city’s current buildings would have required a crane of this scale.”

Keith McDougall, Operations Director, High Street Residential Ltd

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

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

Jonathan Stephens, MD, Surrenden Invest

For more information, visit www.surrendeninvest.com or call 0203 3726 499

• Prime Birmingham residential values to hit £500 PSF by 2020 (Knight Frank)
• West Midlands property prices rising at fastest rate in UK (Halifax)
• Birmingham’s innovation and dynamism, along with HS2, capture attention of overseas investors (Surrenden Invest)

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

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

Jonathan Stephens, MD, Surrenden Invest

The UK’s second city certainly has the right credentials in terms of its numbers. The West Midlands housing market saw annual house price growth of 7% during Q2 2018, according to Halifax, meaning that prices there are rising significantly faster than anywhere else in the UK (the next highest house price increases were in Wales and Scotland, which both recorded growth of 3.7%). Within Birmingham itself, the pace of increase appears to be even faster, with Hometrack’s UK Cities House Price Index reporting a rise of 2.9% in the past year alone.

But price rises are only half of the story when it comes to Birmingham. The city also provides exceptional value in terms of its asking prices. The average Birmingham property costs just £161,100. That’s cheaper than the average for Manchester, Leicester, Leeds and a wide range of other regional cities. It’s also well below the UK average of £218,600, according to Hometrack’s figures.

The story so far as prime city centre property is concerned is even more compelling. In London, prime sales volumes have plummeted by 16.9% over the past year, according to the Q2 2018 Coutts London Prime Property Index, while prices have fallen by 1.7%. This is in stark contrast to Birmingham, where Knight Frank has projected that prime residential values will continue rising, hitting £500 per square foot by 2020.

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

Jonathan Stephens, MD, Surrenden Invest

HSBC, Barclays, Deutsche Bank and HMRC are among those to have been drawn to Birmingham in recent years. Now, the city is also among the top three options for the location of Channel 4’s new headquarters. And still property prices remain well below the UK average.

HS2 has played an important role in elevating Birmingham in the eyes of investors in recent years. The high speed network has pushed forward a number of regeneration schemes within the city, with enhanced connectivity to London and Europe seen as a key driver for Birmingham’s rising reputation overseas. Regeneration work is widespread, with areas such as Digbeth and Smithfield benefitting particularly.

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

Jonathan Stephens, MD, Surrenden Invest

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

For more information, visit www.surrendeninvest.com or call 0203 3726 499

• Property price gap between London and other cities to narrow over next 1-2 years (Hometrack)
• Tax changes driving shift in regular market cycles (Surrenden Invest)
• Edinburgh, Manchester and Birmingham enjoying annual price rises of 6.5% and above

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

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

Jonathan Stephens, MD, Surrenden Invest

At present, house price inflation stands at 4.3% for the UK as a whole over the past year. For London, the figure drops to just 0.4% over the same period. Edinburgh has seen the highest increase in values, at 7.1% over the year to April 2018, closely followed by Manchester, at 7.0%.  Birmingham also fared far better than average, at 6.5%, as did Liverpool, at 5.9%.

The regional success stories stand in stark contrast to the price falls seen in 20 of London’s 33 local authorities. Developments such as Westminster Works in Birmingham are thus offering investors far more potential for capital growth, as well as healthy yields. Ideally positioned to benefit from the HS2 Curzon Street station scheme, as well as the redevelopment taking place as part of the Smithfield masterplan, the premium apartments are raising the bar for rental accommodation in Birmingham. The luxurious apartments come with a range of top facilities, including a concierge service, secure on-site parking and smart home, eco-friendly technology in every home.

The same trend of the regions racing to catch up with London’s prices occurred between 2002 and 2005, when London saw weak growth after a period of strong performance from 1996 to 2000. Regional markets had lagged behind, but began reporting strong performance from 2001 onwards, thus narrowing the price gap.

However, leading property investment agency Surrenden Invest is quick to point out that the current market has a number of significant differences to that of the early to mid 2000s. While the cycle appears similar, secondary cities may actually stand a more realistic chance of catching up to London’s prices than they did previously.

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

Jonathan Stephens, MD, Surrenden Invest

In previous property market cycles, the regions have narrowed the price gap between their cities and London, only for London’s prices to race ahead once more. This time, though, the quality, security and corporate governance of nationwide developers are far stronger than they were even ten years ago. Previously a concern for risk-averse buyers, these strong credentials – and the attractive yields on offer – mean that regional cities stand a good chance of catching up to London’s prices outside of the standard cycles that we’ve seen over the past 20 years.

Another contributing factor is the new Stamp Duty regime. Many of London’s properties are located in prime and super prime locations, costing upwards of £1 million. The sale of those properties has been significantly hampered by the higher tax rates, as well as the additional 3% charge on second homes. With regional properties available for significantly less money, the tax burden is reduced sufficiently to make regional property purchases more attractive than London ones in the eyes of many investors.

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

 Jonathan Stephens, MD, Surrenden Invest

For more information, visit www.surrendeninvest.com or call 0203 3726 499

• Average UK apartment price up by £1,251 per month over last 5 years (Halifax)
• Regional cities such as Liverpool and Newcastle currently exciting investors (Surrenden Invest)
• Strength of labour market continues to support house prices (Halifax)

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

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

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

Jonathan Stephens, MD, Surrenden Invest

Liverpool is one city that has benefitted from this new breed of regionally focused property investors. Developments such as The Tannery, which offers bright, contemporary residences with beautifully presented interiors, are drawing in both domestic and international investors. Hadrian’s Tower, in Newcastle, is another such example. Its blend of exceptional apartments and innovative social spaces is precisely what investors are looking for.

Halifax’s latest House Price Index shows a monthly rise in home values of 1.5% during May, following a brief wobble in April. The lender flags up the labour market’s performance, along with low interest rates, as two of the reasons behind this.

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

Russell Galley, Managing Director, Halifax

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

For more information, visit www.surrendeninvest.com or call 0203 3726 499

• Westminster Works to provide 220 elegant apartments in strategic Digbeth location
• Digbeth continuing to build reputation as the place to live, eat and work in Birmingham
• Extensive regeneration plans to ensure that Birmingham benefits fully from HS2

Whichever way you look at it, Digbeth is the place to be in Birmingham.

Not a week goes by when there isn’t a rumour circulating as to the latest hip venue that’s about to pop up. The last month alone has brought the news that a vast new live music venue – The Mill – is to open in the heart of Digbeth, complete with mezzanine level and rooftop garden. Also planned is a giant late-night food and drink market, featuring three bars, four kitchens and regular DJ slots. Meanwhile, Digbeth Dining Club has gained such a reputation for its gourmet credentials that its touring neighbouring cities!

There’s also much more to Digbeth than leisure pursuits, exciting though the area’s cultural credentials may be. The £5 million STEAMhouse project has just launched to provide a co-working space that brings together businesses, artists and academics. Fostering economic growth and innovation are top of the agenda for the Digbeth High Street-based initiative.

“Digbeth has an incredible energy and sense of purpose about it. If you stand behind the Bullring and look out over the area, the potential is evident. Everywhere you look there are new projects being developed, from entertainment venues and cultural hubs to business premises and superb new residential buildings.”

Jonathan Stephens, MD, Surrenden Invest

One of the most exciting residential projects in Digbeth is the newly launched Westminster Works. Home to 220 elegant, loft-style apartments, complete with rooftop terrace, concierge service, secure on-site parking and smart home, eco-friendly technology in every home, the development plans to take Birmingham city living to the next level.

Bespoke David Phillips furniture packs complement the warehouse-inspired design of the building’s exterior, ensuring that Westminster Works has a contemporary, luxurious feel all of its own, while high end fixtures and fittings reinforce the superior standard of the accommodation.

Those investing in apartments such as the homes at Westminster Works, which are available from £168,000 through leading property investment agency Surrenden Invest, are also set to benefit from the extensive regeneration work that is transforming several areas of Birmingham city centre. The master-planned regeneration includes the multi-billion pound residential and retail Smithfield area, a £770 million redevelopment of New Street Station and the integration of Curzon Street Station in Digbeth into the city centre, to ensure that the whole of Birmingham reaps the benefits of the HS2 high speed rail network.

With so much on offer in a world-class urban setting, it’s no wonder that investments such as Westminster Works are so popular with investors from the UK and overseas alike.

For more information, visit www.surrendeninvest.com or call 0203 3726 499