• Rental growth outside of London at highest level since 2008 (Zoopla)
• Fabrik Invest flags up potential of Manchester and other top city locations
• Combination of rising rents and price growth potential delivering a double win for investors

Property investors are enjoying the ideal combination of rapidly rising rents and continuing capital growth. Property investment firm Fabrik Invest reports that city buy-to-lets are back, with demand strong in Manchester, Preston and other UK urban areas, as renters return to city centres once more.

The firm’s findings are backed up by the latest Zoopla Rental Market Report. The Q2 2021 figures show that, excluding London, UK rental growth has hit a 13-year high, with a sharp rise in demand, particularly in city centres.

“With cities opening up once more and life returning to something close to normal, renters are once more embracing the convenience of the urban lifestyle. The exodus to the country that we saw when the pandemic began is now contrasted by a surge in demand from renters for city centre homes.”

Steve Jacob, CEO, Fabrik Invest

This is excellent news for investors in locations such as Manchester, where rents rose by 1.4% during the last three months. The city is home to a number of exciting new developments, with one of the most notable being Michigan Towers, at Salford Quays. In the midst of the £1 billion MediaCityUK expansion, the homes will provide a superb standard of waterfront living in easy reach of the best that the city has to offer. The 375 apartments are complemented by an on-site gym and cinema.

“Not only are rents shooting up in Manchester, but so too are prices, with an increase of 7.4% in the year to June 2021. This is the ideal combination of circumstances for investors looking to enjoy a healthy regular income as well as solid capital growth potential.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

• North West saw house price rises of 18.6% in year to June 2021 (HM Land Registry)
• Preston leading the UK for ROI for landlords (Coulters Property)
• Structural works now underway at The Exchange in Preston (Fabrik Invest)

The North West is leading UK house price growth once more, with an annual price rise of 18.6%, according to the June 2021 UK House Price Index from HM Land Registry. That compares to an increase of 13.2% for the UK as a whole. The figures come as welcome news to those who have been investing in property in the North West, where developments such as The Exchange in Preston are proving popular.

“The North West is such an exciting region from an investment perspective. Not only has it been performing brilliantly in terms of capital growth and yields over the past year, but it’s projected to continue doing so over the coming five years, with Savills forecasting growth of 28% to 2025. For individual cities with strong credentials within the North West, that growth potential is even higher.”

Dale Anderson, Managing Director, Fabrik Invest

Preston is one such city. In the past couple of weeks, it has been flagged up by Coulters Property as the top city in the UK for delivering the best return on investment for landlords. Property prices there remain comfortably below the UK average, despite the increases of the past year, meaning that investors can enjoy a low entry point in a city where demand for rental homes is high.

Feeding that demand is graduates from the Preston-based University of Central Lancashire, which is currently in the midst of a £200 million investment that is enhancing a range of facilities. Not only is Preston a great place to study, it’s also one of the top cities in the country for graduates, according to a new index from comparethemarket. Preston came in third in the index, only narrowly beaten by Bradford and Carlisle, based on analysis of factors ranging from salaries and available job opportunities to the cost of renting a home.

“Preston is a winner on so many levels. It has this superb talent pool of highly skilled graduates who are feeding the city’s dynamic future. Those graduates and other working professionals are generating plentiful demand for rental homes, and particularly for buildings that are a cut above normal standards, such as The Exchange.”

Dale Anderson, Managing Director, Fabrik Invest

Available for investment through Fabrik Invest, The Exchange will deliver 200 high-quality apartments spread across three buildings, two minutes’ walk from Preston city centre and five minutes from the city’s market quarter. Ranging from one to three bedrooms, the homes are complemented by an on-site gym, residents’ lounge, elegant rooftop garden with superb views, hotel-style concierge and bike storage, making them some of the most appealing residences in the city. In addition, placemaking activity includes several commercial units at ground floor level, with tenants being carefully selected to create a community vibe.

The entire development is positioned to benefit from Preston’s extensive regeneration work and infrastructure development, which has attracted £434 million worth of public funding and £2.3 billion of private investment. Structural works are now underway at The Exchange, which is due for completion during Q3 2023.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

• 70% of sales in last quarter have been in Manchester
• Manchester ranked as top investment location by 2020 buy-to-let city tracker
• North West rated as fastest growing region for productivity in 2020 and for property prices for next 5 years

Property Investment company Fabrik Invest has reported a surge in demand for buy-to-let property in Manchester over the past three months. During that time, a staggering 70% of the company’s sales were made in the city.

“We’ve sold around £8 million worth of property in Manchester in the past quarter and demand continues to be strong. Manchester is ticking all of investors’ boxes right now, whether they’re domestic investors or those putting their money into UK property from overseas.”

Dale Anderson, Managing Director, Fabrik Invest

Why is Manchester such a favourite with investors right now? The city’s property market, obviously, plays a key role in this. According to Zoopla’s June 2021 UK House Price Index, Manchester has enjoyed the third highest price rises in the UK over the past year, with an average increase in value of 7.4% (only Liverpool and Belfast have seen higher rises).

Savills, meanwhile, is forecasting a 28.0% rise in property prices across the North West over the five years to 2025 – a total that no other UK region surpasses.

When it comes to overall property investment potential, Manchester wins outright, with Aldermore’s buy-to-let city tracker, published in late 2020, ranking the city as the best location in the UK for landlords to invest in. The rankings were based on numerous factors, from average rent to local void levels.

Further supporting the case for investment is economic credentials of the North West – and Manchester in particular. According to data from the Office for National Statistics, labour productivity in the North West grew by 4.6% in 2020 (compared to 2019). This is the fastest rate of growth in the UK and well above the national average of 0.4%.

In addition, foreign direct investment (FDI) is pouring into the region, with only Greater London and Scotland attracting more FDI in 2020 than the North West. Manchester, meanwhile, is the UK’s third best performing city when it comes to attracting FDI.

“Manchester is a leading light when it comes to property investment right now. With so much going for it, including strong demand for rental homes and a relatively low entry point – the average property there costs £188,900, compared with £488,600 in London – the city has enduring appeal for investors.”

Matt Harper-Penman, Group Director, Fabrik Invest

Homes in key Manchester locations are, naturally, the most popular with investors. Fabrik Invest is offering one development that’s nearing completion – Manchester Waters – which provides waterfront living just six minutes from the city centre. Michigan Towers, meanwhile, is just getting underway at the heart of the £1 billion MediaCityUK expansion. Premium locations such as these provide precisely what investors are seeking in terms of long-term rental home demand.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

• 21% of Brits have no pension (Unbiased)
• The right properties can provide lifelong income potential (Fabrik Invest)
• Average UK pension pot is £42,651

Should you be putting money into a pension ready for your retirement or would you be better focusing on building up an alternative income stream, such as from a property portfolio? It’s a question that’s relevant to anyone who is planning for retirement and one that requires very careful consideration. The right decision could make a huge difference to the quality of the retirement in question and there are risks to both strategies.

“Sound financial planning is incredibly important when it comes to retirement, yet so many of us don’t focus on it until quite late in life. Both pensions and property have their attractions when it comes to funding your retirement, so it’s well worth investing time in discovering what will best suit your individual circumstances and plans.”

Matt Harper-Penman, Group Director, Fabrik Property Group

According to recent data from Unbiased, 21% of Britons have no private pension. Meanwhile, according to pension statistics from Finder, the average UK pension pot is just £42,651. The average retirement age is 64.7 years old for men and 63.6 for women, and life expectancy stands at 79.4 years and 83.1 years respectively. This means that £42,651 pension pot will need to last around 15 years for the average man and around 20 for the average woman.

While it’s true that retirees don’t spend as much as working professionals, Which? reports that the average two-person retiree household spends £26,000 per year. That covers the basics and some luxuries (hobbies, eating out and European holidays). Those looking for a more luxurious retirement (buying a new car every five years and enjoying long-haul holidays, for example), spend around £41,000 per year. Clearly, that average pension pot isn’t going to cut it.

Building a property portfolio as a viable alternative to a pension therefore has its attractions. Property can provide a regular income through rent and is also an asset that can be sold, should the retiree need access to a larger amount of money.

It’s an approach that Steve Jacob, CEO of Fabrik Property Group, figured out early on. Steve took out a residential mortgage to buy his first home, as so many people do. However, he very quickly realised that he could do much more with his money by investing it in property instead. As such, Steve sold his home and moved back in with his parents. He began investing in property with the money from the sale and now has a portfolio of 50 properties, worth notably more than the average pension pot.

“Each member of the team at Fabrik Invest is passionate about the potential that property has to provide a long-term, stable income stream. We’re drawing from our own experiences and strategies – and learning from our mistakes – to support our investors to use those same strategies to build their wealth. In many cases, those investors are using property as part of their retirement planning.”

Matt Harper-Penman, Group Director, Fabrik Property Group

The property versus pension debate is one that will continue over many years. Retirees in the UK have greater freedom over how they fund their golden years these days and many are taking an approach that balances their pension with other streams of income. Those just starting to build their property portfolio are often looking for a low entry point, which makes northern cities such as Manchester particularly attractive.

Manchester is home to Michigan Towers, a collection of 375 contemporary apartments and townhouses with on-site gym and cinema. At the heart of the £1 billion MediaCityUK expansion in Salford Quays, the waterside homes have huge appeal when it comes to attracting renters, while the latest Zoopla UK House Price Index shows that Manchester property prices were growing at the second-fastest rate in the UK in May, increasing 7.2% over the past year. Manchester’s average property is now worth £187,800, while the UK average stands at £229,300, emphasising the northern city’s value for money for those looking to start building a retirement-funding property portfolio.

“Manchester is a city with excellent long-term potential in terms of its property market. With a robust economy and ambitious urban development plans, as well as affordable prices, it’s a key city in many property investors’ portfolios – and rightly so.”

Matt Harper-Penman, Group Director, Fabrik Property Group

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit http://www.fabrikinvest.com

• New figures from Fabrik Invest reveal who’s buying property in the UK
• Buyers from the Middle East, Africa and Asia all profiting from UK property
• Buyers from continental Europe account for just 5% of those who are buying

Figures from leading property investment firm Fabrik Invest have provided some fascinating insights into who is investing in the UK’s property market right now. In its first year of trading, Fabrik Invest saw investors from 25 countries put their money into UK property, selling over 125 apartments – and all against the backdrop of the pandemic with its travel restrictions and multiple lockdowns.

UK investors accounted for 60% of Fabrik Invest’s total sales during the past year, yet buyers from elsewhere in Europe accounted for just 5%. Instead, it was investors from the Middle East who showed the most appetite for UK property, accounting for 13% of total sales. They were closely followed by investors from Africa, who accounted for 12% of sales, and those from Asia, at 11%.

“It’s been an interesting year to work in property investment, with so many staff having to work remotely and to adapt to using Zoom and other tech. However, what we’ve seen is that there is still plenty of appetite for UK property, as investors seek out a market that is fundamentally stable in both political and economic terms.”

Matt Harper-Penman, Group Director, Fabrik Invest

In terms of individual countries (and excluding the UK), it is South Africa that is leading the charge, accounting for 7% of the total number of apartments purchased through Fabrik Invest over the past year. Next comes the UAE, which accounts for 6% of total investors, followed by Qatar at 5% and Hong Kong at 4%.

The fact that investors come from 25 countries in total emphasises just how attractive the UK property market remains around the world, even if buyers from continental Europe are largely declining to get involved.

The North, in particular, has been drawing in overseas investors over the past year. Developments such as Michigan Towers in Manchester are providing a low entry point, with investors able to take advantage of massive local regeneration schemes that look set to drive up property prices significantly over the next several years. With a premium location in Manchester’s MediaCityUK, which is in the midst of a £1 billion expansion, the luxury apartments of Michigan Towers have been selling fast to investors around the globe.

“With a booming property market and a well-regulated financial system, the UK has a great deal to offer when it comes to property investment. Overseas buyers looking for stable, long-term rental income can find everything they need here, with healthy yields and excellent potential for capital growth. With business having boomed during the pandemic, we’re excited to see what the next 12 months has in store.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com or visit https://fabrikinvest.com/

• Fabrik Invest reports increased activity due to stamp duty holiday
• Investors in Chatham Waters save over £100k in just over 3 months
• First-time landlord numbers swelled by chance to save

As the stamp duty holiday draws to a close, property investment firm Fabrik Invest reports that the policy, which was introduced in July 2020, has done much to support investment in the UK property market. That investment is sorely needed; Hamptons reveals that the UK rental sector now has 250,000 fewer rental homes than it did at its peak back in 2017.

“The stamp duty holiday has delivered on a number of fronts after nearly a year of operation. It’s not just families seeking homes with more space who have been spurred into action – many investors have also seized on the opportunity to make a substantial saving.”

Dale Anderson, Managing Director, Fabrik Invest

The savings certainly have been substantial. Under the stamp duty holiday, anyone who buys a property and completes by 30 June 2021 doesn’t have to pay tax on the first £500,000 of its value. Fabrik Invest has seen investors rushing to take advantage of this. In a little over the past three months, investors in one development alone have saved more than £100,000 in stamp duty that would otherwise have been due.

The development in question is Chatham Waters in Kent. Just over half an hour from London by train and completed in November 2020, the one, two and three-bedroom homes offer waterfront living with a range of high-specification on-site amenities.

“In the last six months, our Chatham Waters investors have saved over £60,000 thanks to the stamp duty holiday. The biggest savers were first time buyers, with some having saved more than 50% of the stamp duty that they would otherwise have had to pay. The holiday has definitely supported more activity in the buy-to-let sector and encouraged some first-time landlords to get involved.”

Dale Anderson, Managing Director, Fabrik Invest

Interestingly, Hamptons has also noted the prominence of first-time landlords, with Head of Research Aneisha Beveridge noting that, “The stamp duty holiday has tempted more small and first-time landlords into buy-to-let, reversing a shift towards portfolio investors.” Low interest rates have also played a role in attracting new landlords to the sector – a shift that many see as vital to buy-to-let’s long-term appeal.

“The UK is struggling with a fundamental shortage of homes. Government policy has driven down the number of available rental properties over the past four years, despite continuing growth in the number of renters. It is our hope that those attracted to buy-to-let investment for the first time as a result of the stamp duty holiday will now remain within the sector and further increase the number of homes available to the UK’s renters.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

• 200 stylish homes launched, as Preston rents rise at one of fastest rates in UK
• Investors seek to capitalise on £434 million worth of public funding
• Exchange residents to benefit from host of amenities and on-site neighbourhood creation

Property investment company Fabrik Invest has revealed details of its newest development: The Exchange, in Preston. It is the second development that the company is offering in the rapidly growing northern city, following in the wake of the hugely successful Bishopgate Gardens.

“There’s so much dynamism in the property sector in the North right now and Preston is really showcasing that. Not only are property values rising rapidly, but so are rents, and there’s strong, sustained demand for well-located homes with the right amenities.”

Dale Anderson, Managing Director, Fabrik Invest

Developed by respected local firm The Heaton Group, The Exchange will include rooftop gardens, a gym, a residents’ lounge, bicycle storage and a concierge. Commercial units on the ground floor, with carefully procured tenants, will deliver neighbourhood creation as well as the homes themselves. The 200 apartments will be split across three buildings. They range from one to three bedrooms, with prices starting at £136,000. Construction is already underway and completion is due in 2023.

In 2019, rents in Preston rose faster than in any other city in the North West and by Q1 2020, the city had made it into Zoopla’s index of the top ten cities with the highest annual rental growth in the UK.

The picture is certainly a positive one for the UK’s northern cities. JLL reports a 57% increase in northern letting activity so far in 2021, when compared with Q1 2019. And Savills has pegged the North West as leading the UK for projected property price growth, forecasting increases of 28.8% across the region in the five years to 2025 (versus 21.1% nationally).

The Exchange is poised to allow investors to take full advantage of this regional growth, as well as of the funds being channelled into Preston itself. £434 million worth of public funding has been allocated to regeneration work in the local area, along with £19.9 million from the Towns Fund, as announced in March.

“There is some real game-changing regeneration work taking place in Preston right now. That’s exciting from an investment perspective, as the work that’s underway has the potential to drive up property prices substantially. Investors who choose Preston therefore have a lot to look forward to over the coming years.”

Dale Anderson, Managing Director, Fabrik Invest

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

• Fabrik Invest finds 3 in 4 buyers are seeking properties below £160k
• Suburbs and tertiary cities are the big winners
• Investors also looking for lower deposits

The property investment specialists at Fabrik Invest have highlighted another pandemic-driven change to the UK property market. Conscious of the wider economic backdrop, property investors are increasingly seeking out properties that offer both lower entry points and lower deposits.

“We’re seeing a growing trend towards properties priced between £80,000 and £160,000, with 75% of our investors now seeking out these homes. This is driving a shift in the locations being sought, with tertiary cities and suburbs of larger cities attracting particular interest.”

Dale Anderson, Managing Director, Fabrik Invest

Fabrik Invest’s Dale Anderson cites Preston in Lancashire as a case in point. Apartments there at Bishopgate Gardens, priced from £120,000, have seen strong, sustained demand from both UK investors and those from overseas. Dudley in the West Midlands is another example, with investors being drawn away from higher priced Birmingham city centre properties in favour of commutable homes in Dudley, some 17km away.

Nor is it just property prices that investors are scrutinising so carefully. Many are also being drawn towards investment properties with lower deposits. While a 25% deposit is fairly standard across the buy-to-let property market, investors are increasingly searching for properties with deposits as low as 10%.

“The buy-to-let market is still very busy, but we’re definitely seeing signs of the longer-term influence of the pandemic on investor behaviour now. Lower value homes with lower deposits and those nearing completion are selling very well.”

Dale Anderson, Managing Director, Fabrik Invest

Bishopgate Gardens completes later this year, in September. The site is currently a hive of activity, with kitchens going in and plasterers and plumbers hard at work. The finished apartments will be complemented by shared social spaces and retail units on the ground floor, all designed to offer an exceptional living experience. The 24/7 concierge will deliver drinks to residents enjoying the roof gardens on the eighth and eleventh floors, while a stylish lounge area, coffee pod café and shared working space cater to residents’ various needs.

Fabrik Invest is working closely with clients to provide opportunities such as this, with the right entry point to suit buyers’ changing requirements. The company is also running a monthly educational webinar, looking at market trends, specific locations and property investment more broadly.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com

• Fabrik Invest highlights significant shift from new builds to conversions
• Lower prices, higher yields and faster income all driving the change
• Location winning out over facilities in terms of investor priorities

Property investment firm Fabrik Invest has reported a shift in developers’ and property investors’ priorities, driven directly by the pandemic. Managing Director Dale Anderson comments:

“We’re seeing much more emphasis – from both the developers and the investors that we work with, and particularly over the past six months – on commercial to residential conversions. This is marking a significant and sustained swing away from new builds, as lower risk, more economical projects appeal more in the pandemic era.”

Dale Anderson, Managing Director, Fabrik Invest

It’s cheaper to convert an existing building than to build one from scratch. This means that savings can be passed on to the investor, resulting in a better purchase price per square foot than new build homes. They can also be passed on to the tenant, with lower rents meaning the building is faster to fill.

Given Covid’s impact on the economy, lower rents are certainly appealing to many tenants right now. Rent arrears protection service Only My Share reported last month that it had seen a 300% rise in claims during the pandemic, as tenants struggle financially. From a development perspective, this emphasises the need to focus on lowering costs where possible.

The other major factor behind the rise in commercial to residential conversions, according to Fabrik Invest, is the speed at which the work can take place.

“New builds can take two to three years to complete, whereas a conversion can be finished in just three to six months. That’s a huge difference for developers in terms of risk, as well as cost. It’s also extremely appealing for investors looking to receive income as quickly as possible.”

Dale Anderson, Managing Director, Fabrik Invest

Off-market apartments at Albion Place, in Manchester city centre, is one such example. Newly launched to the market this month, the first phase of homes are due to complete before the end of the year, providing investors with much faster returns than a new build ever could. Available from £140,000, the one- and two-bedroom apartments are also competitively priced – again, due to being a conversion, rather than a new build.

Commercial conversions also tend to deliver maximum benefit in terms of location. Albion Place, for example, sits in an enviable position between Spinningfields and MediaCityUK, just 850m from Salford Crescent station. According to Fabrik Invest, this is another plus point for investors.

“The pandemic has led investors to focus on location over and above amenities. This comes back to price, again. Cinemas, pools and gyms are all very nice, but they also eat into yields significantly by driving up service charges. In a price-conscious era, the right location – with a price-tag that can attract tenants fast – is proving far more appealing than on-site facilities and services.”

Dale Anderson, Managing Director, Fabrik Invest

Over 60,000 homes have been created using permitted development rights over the past four years, according to Housing Secretary Robert Jenrick. With demand increasingly favouring commercial to residential conversions as a result of the pandemic, it will be interesting to see how many more are created over the next four years.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikinvest.com, or visit www.fabrikinvest.com