Berlin’s rent cap: 5 reasons why landlords are still onto a winner

Berlin’s rent cap: 5 reasons why landlords are still onto a winner

by Charly Germany
  • Rents in Berlin up by 9% in 2013/14 (JLL)
  • New rent cap allows for 20% rent increase every 3 years
  • 20k new properties needed in Berlin every year (JLL)

Berlin is the first city in Germany to introduce a cap on what landlords can charge new tenants. The rent-control legislation has come into force in a bid to control some of the fastest rising rents in Europe. As a result, landlords in Berlin are now limited to raise rents by no more than 10 per cent above the local market average; a cap that was already in place for existing tenants but, under the new rules, has been extended to new tenants too.

Between 2013 – 2014 rents in Berlin increased by more than 9% according to Jones Lang LaSalle – making the capital home to some of the fastest-rising rents in Europe.

But whilst the rent controls are bound to bring extra stability for tenants, what does the cap mean for landlords? Here are five reasons why investing in Berlin means landlords are still onto a winner:

  1. Tenants stay for longer

Rent controls discourage tenants from moving frequently because they have more certainty that prices will not rise too steeply, too fast. German tenancies are typically long anyway – in fact, they are generally open-ended. For landlords, this means that tenants can stay in their apartments for decades on the same contract – eliminating the cost and hassle of finding new tenants every 2-3 years, as is typical in the UK.

  1. Substantial rental increases every 3 years

The cap means that rental increases will be restricted to 20% within three years, unless an event such as modernisation of the property has taken place that warrants an earlier increase. However, as any experienced investor will tell you, a 20% increase every 3 years is still considered a substantial gain.

  1. New build properties are excluded from the rent cap

Many investors are switching their focus to new builds in Berlin, which are excluded from the rent cap, such as the brand new buy-to-let opportunity at Stadtpark Steglitz from leading buy-to-let specialists Property Frontiers. The collection of studios, one, two and three bed apartments has been hugely popular amongst those looking for excellent capital growth potential and as new build apartments are excluded from the rent cap, it means landlords can maintain a healthy rental income.

  1. Berlin’s housing market continues to thrive

Despite the rental cap, investors can still expect their buy-to-let property to get snapped up quickly, due to high demand for accommodation thanks to a growing population and shortage of properties available. According to estimates by Jones Lang LaSalle, at least 20,000 new apartments p.a. will be required over the next few years to return equilibrium to the residential market.

  1. Keeps the city affordable

Although rents in Berlin are still low compared to other European cities, the rent cap is vital to keep the city affordable for lower-income residents. The rent cap will ensure that Berlin does not become another priced-out city like London or Paris, both of which are forcing tenants with lower incomes to seek properties outside the city because they simply cannot afford the rent in prime areas. The rent cap will maintain a healthy rental market and should not have a dampening effect on new build properties.

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.

From renters to buyers – what Germany’s national shift in perspective means for overseas investors

From renters to buyers – what Germany’s national shift in perspective means for overseas investors

by Charly Germany
  • Just 18% of Berlin’s residents own their property (Buy Berlin)
  • Berlin rents up 9% from 2013 to 2014 (JLL)
  • Low entry point of €109,600 attracting global interest in buy-to-let (Property Frontiers)

“When you look at a property investment, always think it through to the end. Know your exit strategy from day one.”

Sage advice from Ray Withers, Chief Executive of leading property investment specialists Property Frontiers. Withers has been at the helm of the company for over a decade, overseeing successful client investments in properties around the world. The company’s latest offering, the high spec collection of studio, one, two and three bedroom apartments at Stadtpark Steglitz in Berlin, provides an excellent illustration of Withers’ point.

Germany – and in particular Berlin – has been a nation of renters for decades. According to Buy Berlin, just 18% of the city’s residents are owner-occupiers due to the housing subsidy legacy of the old East German government. Across the country, ownership remains low, with only around half of Germans owning a home. The only country with a lower home ownership rate in Europe is Switzerland.

However, a national shift in perspective has created an interesting change in the makeup of Berlin’s residential population. Now, increasing numbers of renters are becoming buyers, giving the property market a new lease of life. Michael Schlatterer of CBRE Germany comments,

“There is a shift towards owner-occupation, that’s for sure. You can see that the trajectory for condominium purchases is going up.”

Rent rises are one of the factors behind the new German interest in buying property. According to Jones Lang LaSalle, rents in Berlin have risen from €5.50 per square metre in 2005 to €9 per square metre in 2014. From 2013 to 2014 alone, rents rose by more than 9%. While Berlin has responded by introducing a rent cap, many tenants have already had their heads turned by the prospect of property ownership.

Continuing low interest rates across Europe and Eurozone-related uncertainties have also caused many Germans to look at buying property, as they seek out the best ways to make their savings work for them in this post-Great Recession world. Andrew Groom of Jones Lang LaSalle comments,

“We’re at the start of a re-pricing period of anywhere between two to five years. Prices in Germany have tended to be stable for long periods of time, and have then been driven by bigger macro-economic political events. We’re going through a macro-economic situation now, which is driving Germans back into bricks and mortar.”

This shift in national attitudes across Germany has served to create an interesting opportunity for overseas investors in cities like Berlin. As the housing market takes on a new dynamic, buy-to-let properties like Stadtpark Steglitz have become increasingly appealing, with the more active market offering a realistic exit strategy. Apartments there are available from €109,600, with gross yields up to 5.6%. Property Frontiers’ Ray Withers comments,

“We’re experiencing a real upturn in demand from investors for property in Germany and in particular in the capital. As the Berlin market shifts its focus, international investors are seeing a new and realistic exit strategy open up before them. Combined with the stability of Germany as an investment prospect, Berlin has quickly become one of the most exciting residential property investment destinations in Europe.”

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.

Why Berlin is Europe’s best bet

Why Berlin is Europe’s best bet

by Louise Germany
  • Prime residential real estate prices up 9% in Berlin (Knight Frank)
  • Berlin population increases by 1.5% in 2 years (Economist)
  • 40k new companies per year founded in Berlin (CBRE)

The largest national economy in Europe, Germany ranks 16th in the world in the 2015 Index of Economic Freedom, which considers matters such as fiscal freedom, government spending and investment freedom. Germany’s highest scores in the ranking were for property rights and investment freedom. Combined with a booming property market, swift growth in cities such as Berlin and intense demand for rental accommodation, this is serving to make buy-to-let investments in Germany some of the most exciting in Europe.

According to the Knight Frank Prime International Residential Index (PIRI), city markets are performing so well of late that they have even outperformed second home sun and ski destinations. The PIRI tracks annual price changes in 100 city and second home locations and found that Germany’s leading cities were enjoying significant prime residential real estate price rises, with Berlin at 9%, Munich at 8% and Frankfurt at 7.5%.

Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, explains,

“Germany has long been a nation of renters, with low rents creating some fantastic city communities. Berlin, in particular, is known for its vibrant neighbourhoods packed with artists, students and hip, young professionals. Of late though, low interest rates across Europe have encouraged Germans to turn to property as a more profitable alternative to savings accounts. With interest from international investors picking up as well, rents are on the rise and the buy-to-let market has become increasingly appealing.”

Against a background of rising property prices (the Economist reported an increase of 20.3% in Germany in the five years to Q4 2014), Berlin has experienced rapid population growth. Its population grew by 1.5% between 2011 and 2013, to 3.422 million. In 2013, a further 50,000 new residents arrived in the city.

New arrivals are flocking to districts within the S-Bahn urban railway catchment area, avoiding the centre in order to balance rent levels with better availability of residential space. Steglitz-Zehlendorf is a prime example. Home to one of Berlin’s most attractive commercial districts, Schlossstrase, which is packed with shops and restaurants, the green and leafy neighbourhood is drawing in wealthy professionals and well-to-do families looking to rent high quality homes.

It is also home to Stadtpark Steglitz, a contemporary development of stylish apartments named after the 17 hectare city park of the same name, which is one of the area’s most attractive features. The development is spread across three buildings (one refurbished and two newly built) and includes apartments ranging from studios to three bedrooms. Prices start from €109,600, with gross yields up to 5.6%.

According to the CBRE/Berlin Hyp Housing Market Report Berlin 2015, the employment market and incomes in Berlin are growing in tandem with the city’s economy. Berlin Hyp AG management board member Gero Bergmann succinctly sums up the city’s current position,

“All in all, Berlin is one of the most exciting and, in many respects, most promising locations in Europe.”

Woven through the city’s economic success are strong industrial and entrepreneurial strands. Industrialists accounted for 105,000 of Berlin’s jobs while 40,000 new companies are founded there per year, according to the CBRE.

Over the past decade, Berlin has transformed from one of Germany’s worst-performing regions to its most exciting success story. Economic growth is continuing to draw in new residents with a hunger for a bright future from across the country, and indeed from other countries too. Berlin’s time is now and savvy property investors are queuing up to be a part of its future.

As the Telegraph recently concluded,

“Berlin is a ‘no-brainer’ for British property buyers.”

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.

 

UK buyers look to the rest of the world with the return of international property investment

UK buyers look to the rest of the world with the return of international property investment

by Charly Uncategorized World

Ray Withers, Chief Executive of Property Frontiers, answers investors’ questions on the highly anticipated rise of the foreign market

After years of UK buyers being thoroughly taken by their own domestic property market, recent figures have shown that the allure of international investment has returned. According to the Knight Frank Global House Price Index, Europe is at the forefront of the market in terms of price growth, with Africa recording a respectable growth rate of 2.6%.

With the potential to become a daunting minefield of opportunities and decisions, Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, offers expert opinion and advice on the current international property market.

 

What has kept UK investors focussed on domestic property for the last few years?

To begin with there was an element of fear due to the perceived risk in the wake of the financial crisis. It’s not that international property became more risky per se, but that people’s attitudes towards the risk changed. On top of that, people had a booming opportunity on their doorstep within the UK buy-to-let market.

How has the global market changed to start attracting UK buyers back to international property?

Again, the change that reports are suggesting is mainly about investor attitude. Good international opportunities never actually went away; it’s just that people feel confident enough now in their own finances, and the global outlook, to start investing abroad once more.

With interest in international property investment on the rise, what impact could this have on the UK market?

I don’t think there will be any impact on the UK market. It is not an either or case for most investors and even if it were, the numbers are not large enough to have a significant effect on the juggernaut that is the UK property market.

Where in the world is generating the most excitement and where should UK investors be looking at?

This is a heavily weighted question with where to invest depending greatly on the buyer, what they want and where they feel comfortable. There are several ‘safe’ locations, Germany for example, and also more speculative opportunities throughout Southern Europe. For those with the appetite, there are of course excellent opportunities in the emerging markets, especially regions in Africa that are now booming.

Is this positive growth in the global market sustainable or will UK buyers eventually return home?

Property markets move in cycles. What is a great time to invest in one market may not be a good time in another. However if we have learnt anything from history, it is that market movements will present myriad opportunities in the future. At some point the UK market will slow, but will then quicken again; it’s all about the right place at the right time. With global coverage it is our job to spot the markets when opportunity presents itself.

The UK is still part of this exciting new world of property investment and there are some excellent buy-to-let opportunities on home soil right now. It’s just that they are no longer the only ones to pique the global investment community’s interest.

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.

Value of foreign investment in US homes rockets, latest report reveals

Value of foreign investment in US homes rockets, latest report reveals

by Charly United States
  • Value of US home sales to foreign buyers jumps 13% (NAR)
  • Currency fluctuations in Europe pushing investors to the US (Property Frontiers)
  • Chinese buyers now top list of foreign investors in US (NAR)

According to the National Association of Realtors (NAR), around 4% of US homes (209,000 houses) were bought by foreign buyers between April 2014 and March 2015. The figure represents a 10% drop over the previous year, due to the strength of the dollar. However, while the volume of purchases by overseas buyers may have diminished, the value has shot up by 13%, from $92.2 billion in 2013/14 to $104 billion in 2014/15.

So, who’s buying in the US?

For the first time, buyers from China have topped the list of foreigners buying up US real estate, knocking the Canadians off the top spot. It’s something that those in the industry have expected for several years, as Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, explains,

“We’ve seen a growing trend of Chinese buyers purchasing US real estate for several years. The NAR’s 2014/15 Profile of International Home Buying Activity has shown they are now not only the largest purchasers by volume (at 16%), but also by value, with an average spend of $831,300. As a group, Chinese buyers like high end investment properties in prestigious locations, so there’s a lot of focus on cities like New York and LA, though their interests extend right the way across the US.”

Canadian buyers still accounted for 14% of homes bought by foreign buyers during 2014/15. Buyers from Mexico, India and the UK also accounted for substantial proportions of the overall number of houses purchased.

A stable base

“With currency wobbles in Europe, the US provides a stable playing field for investors,” continues Withers. “The dollar may be strong, but in an uncertain market that can be a positive attraction for many investors. It’s about playing the long game, not making a risky overnight profit that could backfire significantly.”

Withers cites Chandler Oaks in the South Carolina city of Gaffney as an example of what investors are looking for from the US market. The development consists of one and two bedroom apartments designed for students and young professionals to rent. With rents on the rise in the US, this type of investment is much in demand – 70% of the apartments at Chandler Oaks have already sold out. Rents in the US have risen 3.7% year on year, with Zillow’s March data showing that annual rental growth exceeded annual house price growth in 17 of the largest metro areas of the US during March.

Rising rents are good news for investors looking for strong yields. At Chandler Oaks, a minimum of 11.4% gross yield is offered for the two bedroom apartments, thanks to a contract with a local college that will provide tenants to May 2019. Underwritten income of 8% NET is also in place until the start of 2020.

These strong yields are one reason that foreign buyers look to US, as they can generate greater income than they could on similar properties back home. Local property restrictions also come into play – in Beijing, the maximum property ownership limit is two homes, even for investment purposes, hence the cash purchase of so many homes in the US.

Whatever their individual reasons, investors turning to the US are looking for stable investment opportunities with healthy returns, exactly like Chandler Oaks. Investment there is available from $48,671 for a one bedroom apartment.

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.

Tie the knot or buy some bricks? Which would you choose?

Tie the knot or buy some bricks? Which would you choose?

by Charly Portugal Spain United Kingdom , ,
  • Average UK wedding now costs £20,983 (You and Your Wedding)
  • 47% of women and 48% of men aged 20 will never marry (The Marriage Foundation)
  • Average UK first time buyer needs income of £41k, while average wage is £22k (KPMG)

You grow up, get married, buy a house and have 2.4 children. At least that’s how things used to work. These days an increasing number of young (and indeed not so young) couples are having to make a choice between their dream wedding day and their dream of owning their own home.

In the US, the average wedding (excluding the honeymoon) cost $31,213 in 2014 according to the Real Wedding Survey. In Ireland, couples now shell out €19,635 on their big day (Mrs2Be), while in the UK, You and Your Wedding has found that the bill now totals £20,983.

Of course, £20,000 won’t buy you a house in the UK, but it could make all the difference in obtaining a mortgage when used as a deposit. This is the take of the ING International Survey, published in June 2015, which examined whether couples were sacrificing their ‘big day’ in favour of home ownership.

The results speak for themselves: 60% of people across Europe were found to opt for spending on a house rather than on their wedding day. With home ownership becoming an increasingly unattainable goal and the cost of living rising faster than wages, betrothed couples seem to have a pragmatic mindset when it comes to matters of the heart.

Ray Withers, Chief Executive of specialist property investment company Property Frontiers, comments,

“The UK has a real problem in terms of lack of housing supply and that is one of the factors that has driven prices up in recent years. It’s meant a fantastic boom for the buy-to-let sector, as young professionals opt to rent in city locations during the early stages of their careers, but the age of first time buyers has gradually been pushed up and up as a side effect.”

Nationally, the average first time buyer in the UK is now 31 years old, according to The Sunday Times Money, while a KPMG report has found that they need an income of £41,000 – almost double the average UK wage of £22,000. With 100% mortgages a distant memory, buyers are increasingly having to choose between a life of wedded bliss and a roof of their own over their heads.

Some are considering a wedding overseas as a way to cut costs, but even in countries such as Spain, where the cost of living is lower than in the UK, nuptials can still be pricey. Bella Wedding reports the cost of a boutique hotel wedding for 60 guests in Spain as €18,000.

Marc Pritchard, Sales and Marketing Director of leading Spanish homebuilder Taylor Wimpey España comments,

“A wedding in the Spanish sunshine is a lovely idea and can be cheaper than getting married in the UK, but many couples are still having to chose between that and using their cash as a deposit. The reality is that pragmatism has to come before romance in many households these days. For couples in Spain, the ING survey showed that 70% would rather spend their money on a house than on their wedding day – higher than the European average of 60% and the UK average of 67%.”

The €18,000 cost of a Spanish wedding would serve well as a deposit on a seafront apartment at a development like La Recoleta III, on the Costa Blanca, or perhaps an exciting renovation project with two houses and land in neighbouring Portugal.

With couples increasingly preferring to opt for property ownership instead of a wedding day, it is understandable that the marriage rate in the UK is falling, though the statistics from The Marriage Foundation that 47% of women and 48% of men aged 20 will never marry really do throw the issue into stark relief. Until the UK starts building homes at a faster rate, it’s a trend that looks set to continue, with the number of cohabiting couples increasing with each generation. Still, at least they will be cohabiting in homes that they own.

For more information please contact:

Property Frontiers: +44 1865 202 700 or www.propertyfrontiers.com

Taylor Wimpey España: +44 08000 121 020 or www.taylorwimpeyspain.com. Those residing outside of the UK should call 0034 971 70 69 72.

Ideal Homes Portugal: 0800 133 7644, +351 289 513 434 or www.idealhomesportugal.com.

Londoners seek refuge in Brighton for the perfect work/life balance

Londoners seek refuge in Brighton for the perfect work/life balance

by Charly United Kingdom
  • Record 250k Londoners moving out of the capital each year (ONS)
  • Brighton 2nd in top 20 London commuter hotspots (Savills)
  • New park-side apartments in Brighton from £330k (Property Frontiers)

It’s commonly accepted that a good work/life balance is a key component of a happy life. So what do you do if you work in London but want a better quality of life than living in the big smoke can provide? Simple: you move to Brighton.

Londoners are leaving the capital in record numbers. Data from the Office for National Statistics has shown that around 250,000 per year are moving away from the city, with more affordable homes and proximity to good schools high up on the list of reasons for living.

Many of those leaving London intend to commute into the city for work from their new home, so a new report from Savills has examined the 20 top towns with good-value homes within an hour’s reach of London. Reading took the top spot, but Brighton came a close second, with its iconic seafront, liberal culture and bustling shopping streets giving jaded Londoners a new lease of life.

Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, comments on the development,

“Life in London can be fabulous, but we’ve found a growing number of young professionals who want to combine a London salary with a home life that offers more than the big city can. Tenants are demanding luxury apartments with easy access to the sea and the green spaces of the South of England, with London less than an hour away by train.”

Brighton provides all this and more. It is renowned for being a welcoming and liberal place and has previously been voted the ‘UK’s coolest city.’ It is a city of firsts, having been the location of the UK’s first Green MP, first nudist beach and first same sex marriage. In the summer, its beaches and parks provide the perfect location for a picnic, a game of Frisbee or simply a snooze in the sun, while for those winter days it boasts the oldest working cinema in Europe, more restaurants per head than any UK city other than London and excellent shopping in the twisting maze of independent stores that make up the Lanes.

With so much to offer in its own right, as well as quick and easy access to London, Brighton truly does provide the best of both worlds. Demand for rental property there is fierce, creating an ideal environment for buy-to-let investors. Opposite the natural beauty of Preston Park, the Park View Apartments offer spacious, two bedroom/two bathroom apartments in a contemporary, boutique building that fits perfectly with the local environment. Executive tenants and young professionals will feel right at home with recessed LED lighting, under-floor heating and high gloss kitchens. Prices range from £330,000 to £420,000, with up to 4.7% yield expected.

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.

Want to add value to your property? Be sure to keep a metro map handy!

Want to add value to your property? Be sure to keep a metro map handy!

by Kate United Kingdom
  • Proximity to tram stop increases home value by 4.6% (Nationwide)
  • Manchester Metrolink area house sales up 15% in 2014 (JMW Solicitors)
  • Contemporary apartments 150m from tram stop for just £127,000 (Property Frontiers)

It’s official – Manchester property owners are mad about the Metrolink. In fact, data from Nationwide has revealed that buyers in the city are prepared to pay 4.6% more on average for a home that is within 500 meters of a tram stop. This equates to a tram stop adding £8,300 to the value of a typical home.

Smart investments

The finding is great news for buy-to-let property investors savvy enough to do their homework on the location of the property that they are buying. Custom Quay, in the Salford Quays area of Greater Manchester, is a perfect example. The property is just 150 metres from the nearest tram stop, meaning that central Manchester is accessible in just 15 minutes. Such a quick connection adds instant appeal to a rental property, attracting commuters who want to live outside of the city centre but who need easy access to it for work.

Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, comments,

“Having a Metrolink so close to a property is excellent news all round. For the investor, it makes their property a more valuable asset. It also means that demand from potential tenants is likely to be higher and that the property can command a higher yield as a result. It also makes properties easier to sell, should investors wish to do so.”

This is certainly the case in Manchester, where house sales in the Metrolink region rose by an average of 15% in 2014. In some regions, sales even doubled, according to law firm JMW Solicitors LLP. The company’s Andrew Garvie, head of Private Client, observes,

“It makes the home more attractive and easier to sell, coupled with sustainable house prices.”

Metrolink Madness

Metrolink, which in 2013/14 transported some 29.2 million passengers along its seven lines according to the Department for Transport, was the UK’s first modern, street-running rail system, having opened in 1992. Today, it is an essential component of Greater Manchester’s transportation network, with three new lines having opened in 2014. Councillor Andrew Fender, Chairman of the TfGM Committee, comments,

“With three new tram lines opening in 2014, Metrolink is now connecting more people with more places than ever before – making it easy to get to employment and leisure opportunities across Greater Manchester.

“Metrolink offers excellent, direct links to the city and further afield, making the areas it passes through popular with homebuyers.”

Many of those buyers are purchasing their property not to live in it but as an investment and the Metrolink effect is an important consideration for those who want to maximise profits, such as buyers at Custom Quay, where a selection of one and two bedroom duplex apartments are available from £127,000. With plans in place for a further line to be added by 2019, which would bring the Trafford Centre into the network, it looks like the Metrolink’s impact on everything from yields to property value is here to stay.

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.

New Northern Powerhouse Minister set to take on the South

New Northern Powerhouse Minister set to take on the South

by Kate United Kingdom
  • James Wharton becomes first Northern Powerhouse Minister
  • PM David Cameron heads North for first post-election visit
  • Salford Quays tourism revenue up to £544 million annually (STEAM)

Stockton South MP James Wharton has become the first Northern Powerhouse Minister under the new Conservative government. Under his leadership, the cities of the north are expected to unite to take on the South and redress the economic imbalance of the North-South divide.

MPs in London have been looking up at the North of England for some time, conscious of the importance of the area’s manufacturing, scientific and technology sectors. Manchester has become something of a favourite for speeches by ministers and is seen by many as the capital of the North. Leading companies have ditched London in favour of areas like Salford. Stockton-on-Tees was the setting for Prime Minister David Cameron’s first post-election visit.

The Northern Powerhouse concept was one first coined by Chancellor George Osborne. In simple terms, the idea is for the North of England to present a united front, harnessing its industrial might to take on the established powerhouse of the South-East. Businesses are certainly aware of the North’s potential and even some of the country’s peers are taking up the cause, with Labour peer Andrew Adonis suggesting relocating the House of Lords to Salford Quays.

Salford is certainly enjoying its position in the spotlight. Recently release figures have highlighted the area’s tourism credentials, with a £24 million boost in tourism revenue recorded by the Scarborough Tourism Economic Activity Monitor (STEAM) in 2013, pushing the total year figure up to £544 million. The increase generated some 184 new fulltime equivalent jobs over the course of the year, according to the STEAM data.

Leading property investment specialists Property Frontiers have been aware of Salford’s potential for some time. Chief Executive Ray Withers comments,

“Salford is one of the most exciting housing markets in the UK right now. A steady stream of high profile companies moving into the area has brought with it an influx of young professionals looking for high quality apartments with a touch of luxury. Added to that is the influence of the Lowry Theatre, which has been Greater Manchester’s top tourist attraction for a number of years.

“Salford Quays has a real energy to it these days. It’s packed with restaurants, shops, cultural attractions and yet retains the elegance of lifestyle that only waterfront living can provide.”

Property Frontiers is delighted to be able to offer investors their own part of Salford Quays for as little as £127,000 for a duplex. The Custom Quay development will consist of 60 one and two bedroom apartments and duplexes in an iconic waterfront building, with yields of 8.4% and full management option available. Stylish, light-filled space is at the heart of the design, which is in perfect tune with the area’s current renaissance as one of the most influential parts of the Northern Powerhouse.

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.

New Urban Settlers flock to Manchester’s private rented sector

New Urban Settlers flock to Manchester’s private rented sector

by Kate United Kingdom
  • Nurbs drive demand for luxury apartments in Manchester (Property Frontiers)
  • Economy driving strong growth in number of renters (Experian)
  • Manchester’s population up 19% (Census data)

For several decades, English cities enjoyed a pattern of incoming young professionals renting property, moving up the career ladder and then buying a home of their own. However, a woeful lack of housing, mortgages that are increasingly hard to obtain and rising prices have caused the pattern to change. Now, these New Urban Settlers move to the city, rent a property, climb the career ladder… then rent steadily more luxurious properties. For many, buying is simply out of the question.

“With money harder to borrow, larger deposits required, a lack of affordable housing and the impact of the economic downturn, one of the biggest changes we have seen is a strong growth in the number of people renting,” comments Richard Jenkings, senior consultant at Experian Marketing Services.

Experian’s research has shown the rise of these New Urban Settlers, known as Nurbs. They are up-and-coming professionals who demand high end accommodation in good locations. In the South, they flock to the Home Counties, while in the North they head to Manchester. Indeed, Manchester has enjoyed a 19% increase in population over the past ten years and Nurbs are leading the field.

Manchester’s Nurbs are driving demand for luxury apartments in the city, explains Ray Withers, Chief Executive of leading property investment specialists Property Frontiers,

“We’ve seen a dramatic increase in those classed as New Urban Settlers in Manchester in recent years. The career opportunities in places like Salford Quays are particularly attractive to them and the waterside living that the area boasts is a textbook example of the kind of accommodation that the Nurbs are looking for. Convenient location, high quality interior and excellent local amenities are all essential for the modern professional’s rented accommodation. Priced out of the market, they take the view that if they are going to have to rent, they may as well demand the best.”

The Custom Quay development in Salford Quays is certainly that. The 60 one and two bed apartments and duplexes benefit from a communal roof garden with superb views over the quays, private gated car park and landscaped courtyard. Properties are available from just £127,000 for a duplex, with yields of 8.4% and full management option available.

As well as being a thriving area in its own right, packed with shops, restaurants and cultural attractions, Salford Quays is just 15 minutes by train from central Manchester, making it the ideal location for New Urban Settlers looking for high quality living within easy reach of the city centre. Salford Quays itself is booming, meaning that residents can enjoy the area’s prosperity and the career opportunities that such economic advancement generates. Meanwhile investors can sit back and enjoy the buy-to-let property ownership opportunities that the Nurbs are generating for them.

For further details, visit www.propertyfrontiers.com or call the team on +44 1865 202 700.