• London rents to rise by 15.9% in 5 years to 2023 – faster than UK average (Savills)
• Luton voted 2019 top commuter hotspot (Jackson-Stops)
• New development The Orion key to addressing Luton’s housing shortage (Surrenden Invest)

With prices correcting over the last two years, London has definitely not been the choicest of locations when it comes to buy to let investments. However, specialist property investment agency Surrenden Invest believes that the capital’s fortunes are on the turn, making now the ideal time to consider commuter belt properties in areas of pent-up demand, such as Luton.

“Life in Luton means easy access to the best that London has to offer but without the capital’s extortionate housing costs. The town has excellent amenities with a lively local culture that appeals to those looking to balance access to London with a realistic lifestyle. This is one of the reasons that Luton exhibits such excellent growth potential.”

Jonathan Stephens, MD, Surrenden Invest

According to Savills, London will lead the UK’s compound rental growth over the five years to 2023, with growth or 0.5% this year accelerating to 1.5% in 2020, 4.0% in 2021 and 4.5% in the following two years. The overall growth rate of 15.9% compares to growth across the rest of the UK (excluding the capital) of just 11.5%. This is certainly good news for those looking at investing in residential property in and around London.

Luton is a growing town that is known for being one of London’s most sought-after commuter locations. Indeed, Jackson-Stops has just flagged it up as the top commuter hotspot for 2019.

Luton is located 30 miles north west of central London. Direct trains run into London St Pancras International in as little as 22 minutes. 167 trains per day provide an almost round-the-clock service. Rents, meanwhile, are around 1/3 of the cost that they are in London. For renters, it is the ideal combination.

Luton’s population is increasingly rapidly. Between 2018 and 2041, the Office for National Statistics projects that the town’s population will grow by 12.9%, to 248,500. At the same time, it is in the grips of a serious housing shortage, as is the case with many towns and cities in the UK. However, Luton’s housing shortage is more acute than most, with Project Etopia projecting that it will be 22.1 years behind where it needs to be in terms of housebuilding by 2026, if the current rate of development continues. At present, Luton is building 430 new homes per year – it needs to be building 1,417 to meet demand.

One development racing to meet this demand is The Orion, located just minutes from Luton train station and town centre. The 67 high-end apartments are precisely what contemporary renters are seeking – high-spec homes in a superb location that provides easy access to both London and Luton itself. Offering a mix of one- and two-bedroom homes, they are also ideal for investors looking to capitalise on the resurgence of the London commuter belt as an investment prospect.

Luton’s housing shortage spells good news for buy to let investors over the longer term, as it points to a sustained level of demand for private rented accommodation in the town, as tenants snap up those homes that are available. It also has the potential to drive up house prices (as well as rents and yields). Luton is already bucking the trend in terms of house price rises. While many southern locations are seeing a market correction at present, with falling prices or nil growth, Luton’s prices rose by 1.6% in the year to April 2019. Savills, meanwhile, projects growth of 9.3% in the five years to 2023 for the wider South East region.

In terms of its rental market, Luton enjoys an average rent of £632 pcm for a one-bedroom apartment and £828 pcm for a two-bedroom one, according to Zoopla – significantly less than equivalent homes in London.

“It is Luton’s combination of capital growth potential and pent-up demand for private rented sector homes that has caused the town to top LendInvest’s UK buy to let index for so much of the past three- or four-year period. This is a town with outstanding growth potential.”

Jonathan Stephens, MD, Surrenden Invest

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

• Surrenden Invest’s Rental Market Snapshot reports strong, sustained demand
• Regional cities remain at forefront of increase in private renting
• Brexit delay, section 21 ban and Labour’s PDR challenge having little impact on demand

A new report on the state of the UK rental market has revealed strong and sustained demand for privately rented homes, particularly in key regional cities. The 2019 Rental Market Snapshot, from specialist property investment agency Surrenden Invest, considers the key drivers behind the UK’s booming private rented sector and what this means for those who live and invest in it.  

“What we’re seeing is a continuing drive towards rented accommodation in the UK, with developers racing to meet the demand for contemporary homes in city centres. Tenants are seeking ever more experiential homes, with concierge services and exciting roof terraces becoming something of a must. Investors, meanwhile, have largely shrugged off recent announcements, from the Brexit delay and potential Section 21 ban to Labour’s challenge to permitted development rules.”

Jonathan Stephens, MD, Surrenden Invest

Some 42,000 homes have been built in former office blocks under the altered permitted development rules (PDR) in recent years. Labour has proposed changing the rules once again (following the Conservatives initially changing them back in 2013) due to permitted developments not being required to provide affordable homes or to meet official space standards. However, any such change, unless replaced by an accompanying increase in housebuilding elsewhere, has the potential to place further pressure on the UK’s already tight supply of housing.

“Investors in the UK rental market are increasingly unphased by issues such as the potential Section 21 notice ban and the talk of PDR rule changes. We’re finding that those who were determined enough to see out the increase in stamp duty and the phasing out of mortgage interest relief are in it for the long-haul – which is good news for the UK rental market, given the continually increasing demand for privately rented homes.”

Jonathan Stephens, MD, Surrenden Invest

New homes such as No. 76 Holloway Head in Birmingham are doing much to fuel demand for inner city rental accommodation and the lifestyle that it provides. The spacious, elegant apartments are in an ultra-prime city centre location, with the Bullring, Grand Central and New Street Station less than two minutes away and the Mailbox even closer. For young professionals looking to get the best out of Birmingham, rental properties just don’t get much better.

Birmingham is, along with Manchester, Liverpool, Newcastle and the London commuter belt, one of the key markets highlighted by the 2019 Rental Market Snapshot. These regional hotspots are offering the lifestyle that renters want, combined with the yields and capital growth (or potential for capital growth over the coming years) that investors are seeking.

Right now, that capital growth is focused firmly on the North West. Newly published figures from HM Land Registry show that it is enjoying greater house price rises than any other English region, with monthly growth of 1.3% between January and February and an annual uplift of 4.0% in the year to February. The North West is also the area pegged by Savills as due to enjoy the greatest compound house price growth over the next five years, with a rise of 21.6% projected by 2023.

Again, developers are focusing on city centre homes that appeal to contemporary renters. Middlewood Plaza, for example, is just 10 minutes from Manchester city centre, and offers apartments, duplexes and townhouses with a stunning roof terrace for all residents to enjoy. It is the creation of homes like these that is boosting the appeal of rental properties to residents and investors alike.

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

• Annual wage growth at 3.4%, while house price growth stands at 2.0% (Rightmove)
• 9% National Living Wage increase to further enhance affordability
• Buyers and investors both helping to keep housing market moving despite political uncertainty (Surrenden Invest)
• North West to enjoy greatest price rises – at 21.6% – over next 5 years (Savills)
• 1% April price uplift in properties coming to market is biggest since 2016 (Rightmove)

Wage growth in the UK is outstripping house price growth at its fastest rate since 2011, enhancing buyer affordability. This is contributing to both mortgage approvals and housing transactions holding up well, despite the ongoing political uncertainty related to Brexit. Indeed, the February 2019 Zoopla/Hometrack UK Cities House Price Index states that, “Data on transactions remains resilient with no obvious Brexit impact at a national level.”

According to the report, there was no material drop in mortgage approval activity or transaction volumes during the latter half of 2018, when compared with the five-year average. Furthermore, HMRC figures show that transaction volumes actually increased slightly during the first two months of 2019.

Rightmove’s April 2019 House Price Index adds to the positive picture, reporting a 1.1% price uplift for properties coming to market during the month – the highest spring boost since April 2016 and the largest monthly rise since March 2018.

“The latest figures are further evidence of the UK housing market’s resilience in the face of the Brexit debacle. Improving buyer affordability enhances that resilience even more, with strong transaction levels supporting a buoyant market for both owner occupiers and investors.”

Jonathan Stephens, MD, Surrenden Invest

Annual wage growth stands at 3.4% according to Rightmove’s latest House Price Index. That compares to an average annual rate of house price growth of 2.0%. Not only that, but the National Living Wage in the UK has just risen by 4.9%. As of 1 April 2019, the national minimum wage rose from £7.83 per hour to £8.21 for those aged 25+. Workers aged 21-24 also saw an increase, from £7.38 per hour to £7.70, while those aged 18-20 saw a rise from £5.90 to £6.15.

According to specialist property investment agency Surrenden Invest, the impact of this can best be seen at a local level, where buyers are enjoying a distinct advantage thanks to their increased purchasing power. Combine that with Rightmove’s reporting that new sellers’ asking prices are cheaper than they were a year ago in three out of four southern regions, for example, and the picture is looking positive for both buyers and investors.

Further north, many regional cities have been outstripping the price growth of their southern counterparts over the past three years, thanks to rising employment levels, as well as enhanced affordability. Two cities – Leicester and Manchester – have even achieved price growth of 17% since the Brexit vote, creating fantastic capital growth for those who timed their purchases right around the time of the referendum.

Manchester remains high on the priority list of many an investor – and for good reason. The city is home to an impressive array of redevelopment projects. Two of the largest are the £800 million NOMA site and the £1 billion second phase of MediaCityUK in Salford, which will see the already vast site double in size.

“Such vast developments bring a wealth of opportunities, both for those who live in the city and for those looking to invest there. They can also trigger fundamental shifts in demand in the local housing market, with sudden increases in the need for rental accommodation meaning that the private sector has to rapidly up its game in terms of the number of properties on offer.” 

Jonathan Stephens, MD, Surrenden Invest

One development that is responding to the rising demand for homes in central Manchester is Middlewood Plaza. Available from £153,000, the sleek apartments deliver luxurious living in the Middlewood Locks regeneration zone. A private roof terrace, secure underground parking and smart home technology included as standard make this one of the most appealing developments in Manchester for buy to let investors with a keen eye for strategically located and well-designed properties.

With both investors and owner occupiers keen to be part of Manchester’s future, and with enhanced buyer affordability coming into play, there are likely to be a busy few months and years ahead for the city’s property market. Indeed, Savills’ latest five-year forecast projects that the whole of the North West region has a rosy future ahead, enjoying projected compound price growth of 21.6% through to the end of 2023 (compared to a national average of 14.8%).

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

• Opt for regional city centre locations where pockets of demand are highest
• Medium to long-term vision is key
• Focus on areas where rents and property values are rising fastest

According to Knight Frank, the Brexit-related uncertainty that the UK is currently experiencing is leading to a ‘wait and see’ effect in some parts of the country’s property market. However, given the UK’s chronic undersupply of rental apartments and the fact that rents are rising steadily (the average increase was 1.0% in the year to January 2019), many residential property investors want to act now rather than wait and see what happens with the ongoing political saga. As such, specialist property investment agency Surrenden Invest has shared its Brexit-beating property investment tips, for those who want to make their money work for them sooner rather than later.

“The extension to Article 50 is just the latest twist in the ongoing Brexit uncertainty. We’re finding that many investors are tired of waiting to see how it all settles. After all, the current wrangling is only over the withdrawal agreement – there’s still an incredible amount to actually sort out once the 29 March/12 April/22 May deadline has passed. As such, we are working with investors to find Brexit-beating property investment opportunities right now, not in some distant future when the political upheaval has finally settled.”

Jonathan Stephens, MD, Surrenden Invest

Surrenden Invest’s first tip is to focus on existing pockets of demand. City centre living has come back into fashion with a vengeance, meaning that stylish homes with attractive amenities can generate excellent yields when located in the right areas. As JLL observes in its 2019 Northern England Residential Forecasts, “Manchester, Leeds and Liverpool have all seen significant supply shortfalls in the face of an increase in demand from people wanting to live in the core city centres.”

For investors, this provides an opportunity to identify key city centre hotspots. In Manchester, for example, the chic, contemporary Ancoats Gardens apartment building is located just 300m from the vast NOMA site, which is the largest development project in North-West England, costing a cool £800 million. For investors with a medium to long-term outlook, it’s the ideal location to purchase an apartment that will enjoy strong and sustained demand from tenants.

This focus on the medium to long-term is Surrenden Invest’s second Brexit-beating investment tip. The company cites its No. 76 Holloway Head development in Birmingham as the ultimate example of this.

“If you look at No. 76, it has everything that’s needed for a superb medium to long-term investment. The location couldn’t be better, with the Mailbox, Bullring, Grand Central and New Street Station all within two minutes’ walk – this is the ultimate spot for Birmingham inner city living. But it’s about more than just location. The whole area around No. 76 is undergoing massive redevelopment. It’s about having the vision to look past the cranes and see what the future holds – and how much tenants will want to be at the heart of that future.”

Jonathan Stephens, MD, Surrenden Invest

Finally, Surrenden Invest is encouraging investors who want to beat Brexit to look at areas where both rents and property prices are rising fastest – essentially, a select group of the UK’s regional cities. Birmingham, Manchester, Liverpool and Newcastle all have the right credentials, according to the Surrenden Invest team, meaning that investors who focus their attention on the best-placed developments look well positioned to beat the continuing Brexit uncertainty.

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

• Former leather factory being converted into superb apartments at The Tannery (Surrenden Invest)
• ‘Brownfield first’ policy encouraging housebuilders to focus on developing industrial land
• Liverpool to become an “exemplar for innovation, sustainability and design excellence”

We tend to think of brownfield land as huge swathes of contaminated, former industrial land that now stands derelict while all around it our crowded cities overflow. While the term does indeed incorporate such areas, brownfield sites come in a wide variety of shapes and sizes, leading specialist property investment agency Surrenden Invest to take a fresh look at the way we deal with previously developed land. The result? Brownfield boutique!

“We’ve coined the term ‘brownfield boutique’ to inspire developers to take a fresh look at how we think about brownfield sites. A single former industrial building that now stands idle can be transformed into stylish, well located homes with a little imagination – tackling brownfield sites doesn’t have to be left to only the largest developers.”

Jonathan Stephens, MD, Surrenden Invest

Surrenden Invest’s Jonathan Stephens cites The Tannery in Liverpool as an example of brownfield boutique in action. The Tannery sits on the site of a former leatherworks, from which it gets its name. The design of the building reflects its industrial past, with folded aluminium panels resembling the hanged leather that the site’s original building once housed. Horizontal breaks in the façade, meanwhile, represent the leather press.

Within The Tannery, the elegant apartments will offer bright, spacious homes complemented by a range of luxurious facilities, including a 24/7 concierge, a communal courtyard and a roof garden. The development is turning a former industrial site into capital-quality residences in an enviable central Liverpool location.

“The Tannery is brownfield boutique in action. It’s turning disused industrial land into outstanding apartments and supporting Liverpool’s ‘brownfield first’ approach to solve its housing shortage.”

Jonathan Stephens, MD, Surrenden Invest

The ‘brownfield first’ focus was announced by Liverpool City Region Metro Mayor Steve Rotheram in early 2018 to urge housebuilders to consider using brownfield land across Merseyside, as part of work to make the city an “exemplar for innovation, sustainability and design excellence.” The Tannery is one site doing just that.

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

• Investors becoming more discerning, courting longer-term tenants with superior rental homes (Surrenden Invest)
• Rents to grow by 13.7% by 2023 (Savills)
• Rate of nearly 9 tenant registrations to every new rental listing is highest ever (Foxtons)

Given the intensity of the debate about Brexit’s likely impact on UK house prices, the country’s rapidly growing rental sector has been left rather overshadowed. However, from the expansion of the ‘build to rent’ offering to the more discerning buy to let investors that we’re now seeing, the rental sector is alive and well. Indeed, according to Savills, “Tightening access to mortgage finance and changing demographics is driving demand for privately rented homes at all price points.” This makes it an exciting time to be a buy to let investor.

“As a whole, the UK has seen a reduction in the number of buy to let investors in recent years, as the government’s tax changes have been felt across the sector. However, an interesting result of this is that those investors who do continue to build their portfolios have become more discerning about which properties they choose to put their money into. This is pushing developers to be more creative and ambitious with their property plans.”

Jonathan Stephens, MD, Surrenden Invest

In recognition of the continuing demand for premium investment properties, specialist property investment agency Surrenden Invest has produced a regional rental market report that offers expert insights into the UK’s local rental markets. The guide covers five key areas (Birmingham, Liverpool, Manchester, Newcastle and London/commuter belt), analysing everything from demographics and tenures to average rents, yields and void periods.

Rental growth has been rather subdued over the past two or so years. However, the average rise across Great Britain of 1.0% in the year to December 2018 was up from 0.9% in the year to November, and Savills projects that things are going to get brighter still over the coming five years. It projects rental growth of 2.0% across the UK in 2020, 3.0% in 2021 and 3.5% in each of the following two years, with a five-year compound growth rate of 13.7% to 2023.

“The UK’s population is increasing rapidly and this is supporting a thriving rental sector that seems unabashed by the same kind of pre-Brexit jitters that are slowing down house price growth. Add to that the reduction in stock that we’ve seen as amateur private landlords drop out of the market and the overall rental sector has a very positive future ahead.”

Jonathan Stephens, MD, Surrenden Invest

Surrenden Invest’s own experience in recent years is that investors are now looking for properties that are a cut above the rest. Manchester’s Ancoats Gardens is a prime example. Located in the hippest part of the UK’s ‘most liveable city’ (according to Time Out and the Economic Intelligence Unit), the development’s 155 spacious, light-filled homes are complemented by a superb range of features. The gym is so large it splits across two levels, while the coffee lounge has been carefully designed to suit a range of uses, from casual catch ups to working from home. Then there’s the rooftop garden – an oasis of greenery and comfy seating that invites you to curl up and enjoy the magnificent views of the Manchester skyline.

Ancoats Gardens is part of a new wave of developments that take their on-site features very seriously indeed, as Surrenden Invest’s Jonathan Stephens explains.

“There are now nearly nine tenant registrations for every new rental listing, according to Foxtons. One might imagine that unscrupulous investors are therefore flooding the market with inferior properties in order to capitalise on demand. While there are no doubt some out there who are taking that approach, what our own experience has shown is that investors prefer to court longer term tenants by offering superior properties. The idea is that the building is so fabulous that tenants stay for longer than average, thus dramatically reducing void periods and driving up returns. As such, investors are being far more discerning about where they put their money, which is great news for sites like Ancoats Gardens!” 

Jonathan Stephens, MD, Surrenden Invest

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

• Birmingham house prices up 16% since June 2016 (Hometrack)
• City centre population growth of 163% is 2^nd fastest in UK (ONS)
• Extensive inner city regeneration driving demand for homes (Surrenden Invest)

Birmingham has enjoyed a 16% increase in house prices since the Brexit vote in June 2016, according to the latest UK Cities House Price Index from Hometrack. The December 2018 figures show that home values there have increased more than in any other UK city since the vote. Meanwhile, the government’s House Price Index shows that the West Midlands enjoyed greater price rises than any other English region during 2018, with an increase of 5.2% more than doubling the national average rise of 2.3%. So what is it about Birmingham that has enabled its housing market to flourish so spectacularly?

“Birmingham has just the right combination of factors to make it an exciting place to live as well as to invest. It is a city with a strong cultural offering, as well as a booming business environment, which means that professionals and their families can enjoy urban life in Birmingham to the max. At the same time, it’s 65,000-strong student population is building a wealth of future talent.

“In terms of the residential property market, Birmingham has some outstanding investment prospects. The regeneration work currently taking place in the B1 postcode zone is a prime example of urban planning at its best.”

Jonathan Stephens, MD, Surrenden Invest

Birmingham is known as being the youngest major city in Europe. With 40% of the population aged 25 and under, it is packed with bright, ambitious youngsters who are driving the city’s economic success.

The city also has a superb infrastructure in place, with a cultural offering that drives its tourism sector and delights local residents. Museums, theatres and art galleries abound, while those who prefer to shop and dine in their spare time have a wealth of high end locations to choose from. The upscale Mailbox is home to a range of designer stores and luxurious eateries, while the Bullring and recently completed Grand Central shopping centres between them provide an extensive retail offering.

The development of 34 luxurious apartments at No. 76 Holloway Head, in the heart of the inner city B1 postcode zone, is a leading example of why Birmingham property is so appealing. Brought to the market by specialist property investment agency Surrenden Invest, the homes are just two minutes from the very best that central Birmingham has to offer, including Selfridges, the Bullring and Grand Central. The Mailbox is even closer, delivering all the lifestyle benefits of having the city’s most upscale shopping and dining destination almost on the doorstep. As city centre connectivity goes, it doesn’t get much better than this!

The Holloway Head and Mailbox location represents the epitome of inner city living. It’s the ideal spot for young, urban professionals who are looking for one location where they can eat, work and play. Not only can residents enjoy access to all that the city centre provides, by being just a moment’s walk from the very best that central Birmingham has to offer, but investors will have a chance to benefit from one of the city’s most exciting regeneration zones. No. 76 is located opposite Concord House, which is home to Birmingham’s most expensive apartment (a penthouse that sold for a cool £1.8 million). It’s position on Holloway Head – dubbed the new “Millionaires’ Row” by local media – links it to the new SBQ buildings, which will connect it to the Bullring.

The huge Arena Central and Paradise Birmingham developments are also just a stone’s throw from No. 76, which launches this weekend. Regeneration work already completed in the local area shows the vast commitment to this part of the city. The immediate vicinity includes the already-completed £350 million Brindleyplace development, while future work on Arena Central and Paradise Birmingham will add 3 million square feet of vibrant, mixed use development space, with some £1.1 billion being invested into the area.

It is projects such as this that give Birmingham such solid future potential. At the same time, the city’s population is booming, with inner city living at the core of the expansion. Between 2002 and 2015, Birmingham’s city centre population increased by 163% according to Office for National Statistics data, making it the second fastest growing city centre in the country (Liverpool just pipped it to the post, with growth of 181%).

“This rapid population growth is contributing greatly to the success of Birmingham’s property market, with demand for rental accommodation shooting up hand in hand with demand for homes to buy. And with extensive regeneration work making city centre living more and more desirable, we expect to see this demand continue to rise for a good number of years, particularly as the hosting of the Commonwealth Games in 2022 will place even more emphasis on what a great city Birmingham is.”

Jonathan Stephens, MD, Surrenden Invest

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

• London property prices fall for 2^nd consecutive year (Nationwide)
• Birmingham population to grow by 14.5% by 2041 (ONS)
• Prices and yields combining to make Birmingham the new London (Surrenden Invest)

As a leading property investment company, Surrenden Invest has for years been espousing the virtues of the Birmingham property market. Now, with London house prices falling for the last two years in a row, increasing numbers of investors are looking to Birmingham to be the home of their UK property investment.

According to the latest Nationwide figures, London house prices dropped by 0.8% in the year to December 2018, following a 0.5% fall in 2017. By contrast, the Nationwide figures show a 2.9% increase in house prices for the West Midlands for the year to Q4 2018.

However, it isn’t just because London prices are falling that the Surrenden Invest team are such strong advocates for Birmingham. Indeed, the team was extolling the virtues of all things Brum long before London house prices began to wobble.

“This simple fact is, Birmingham is an amazing city that has an awful lot going for it. Its business community is thriving and there’s a palpable energy when it comes to startups and entrepreneurs in the city. Birmingham’s residents demand the very best, whether that’s cultural attractions, retail outlets or the restaurant scene – and that’s precisely what the city delivers. This is a modern metropolis that is drawing in new residents by the tens of thousands, and for very good reasons.”

Jonathan Stephens, MD, Surrenden Invest

According to the latest Office for National Statistics population growth projections, Birmingham’s population is expected to increase by around 166,000 people between 2018 and 2041 – a growth rate of 14.5%. This is another factor driving the new wave of property investor interest in England’s ‘second city.’

One of the leading developments that is rising to meet the surge in demand is the centrally located Westminster Works. Home to 220 beautiful, loft-style apartments, Westminster Works is offering investment from £168,000. The building’s specification and facilities are superb, as befits such a prestigious development in this exciting city.

“With Westminster Works, what we see is apartments and amenities that deliver a new style of urban living to Birmingham’s aspirational, dynamic young professionals. The lively Digbeth location is the perfect site for this leading development, while the impressive roof terrace is a feature of which every resident can feel proud.” 

Jonathan Stephens, MD, Surrenden Invest

The yields on offer in Birmingham are another reason that attention is moving away from London. Westminster Works offers solid yields of 5.0% NET – something which many developments in London are either struggling or failing to do.

Then there is the overall impact that regeneration work is having on the city. Grand Central’s opening in 2015 marked a step change in the way that many people thought about Birmingham. Now, the £500 million Birmingham Smithfield masterplan, located just behind Westminster Works, is taking regeneration to the next level. Head of city centre development and planning, Richard Cowell, has hailed it as, “an example to international cities,” with residents set to benefit not just from a new market area but from a museum, hotel, culture centres, leisure facilities and a 24-hour gourmet foodie hangout.

“This is the new face of Birmingham – and it’s leaving London looking old and tired. When it comes to UK property investment, Birmingham is the place to be.”

Jonathan Stephens, MD, Surrenden Invest

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

• New £250 million arena planned for Gateshead Quayside
• North East property prices currently cheapest in England (UK Government HPI)
• Regeneration projects driving interest in NewcastleGateshead properties such as Hopper House (Surrenden Invest)

Sitting opposite each other on the banks of the River Tyne, Newcastle and Gateshead share many attributes. Residents benefit from access to both of the bustling urban areas, thanks to the seven bridges that join them across the river. Now, the NewcastleGateshead area is enjoying another joint boost – an inspirational vision for the next phase of the regeneration of its quayside area.

The quayside is already popular on both sides of the river, having undergone development work in recent years that has created an exciting, vibrant district with plentiful leisure facilities and food outlets, including a container village serving superb street food. The latest plans will build on that success, adding Europe’s tallest observation wheel on the Newcastle side of the river (to be known as the Whey Aye), and a 10-acre leisure complex on the Gateshead side that includes a £250-million, 12,500-seat arena, a conference centre and two hotels. A number of bars and eateries are also planned.

Specialist property investment agency Surrenden Invest, which has been selling investment properties in both Newcastle and Gateshead for some time, has welcomed the regeneration plans as yet another reason to support residential property investment in this thriving area of the UK.

“With their North East location, properties in NewcastleGateshead already enjoy one of the lowest entry points in England, as the region is leading the country in terms of cheap house prices. This means that investors can pick up superb quality buy to let apartments for less than they can in many other similarly sought-after urban areas. The recently announced regeneration plans will serve to further increase interest in this part of the North East, both as a tourist destination and as a place to live and to invest.” 

Jonathan Stephens, MD, Surrenden Invest

As at October 2018, the average home in the North East cost just £128,484, compared to a UK average of £231,095, according to the government’s UK House Price Index. That’s despite many buy to let properties there offering comparable yields to those found in other UK cities. Add in the exciting new developments and the case for investment is certainly a tempting one. As Councillor Martin Gannon, Gateshead Council leader points out, such plans are “a game-changer not just for Gateshead but for the region.”

The stir created by the regeneration plans is driving interest in the region, with developments such as Gateshead’s Hopper House benefitting as a result. The 81 stylish studio apartments are perfect for those looking to make the most of life in Gateshead. Located just over 10 minutes’ walk from Gateshead Quayside, the apartments come with an on-site sauna, steam room and gym with adjoining sun terrace, as well as a spacious reception area complete with concierge desk and pool tables.

“Projects such as the Gateshead Quayside arena and the Whey Aye speak to the future potential of this lively area. These are long-term plans that demonstrate a commitment to Gateshead and Newcastle’s residents, as well as to attracting visitors from elsewhere. Such plans are a key component of the region’s future economic success and make it an exciting time for investors looking for combine great entry prices with healthy yields.”

 Jonathan Stephens, MD, Surrenden Invest

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

• Discerning buy to let buyers driving market for right kinds of properties
• Liverpool, Newcastle and Manchester together had 10 of 25 best UK buy to let areas in 2018
• Steady hand and long-term outlook key to dealing with Brexit

2018 has been a busy year for the UK buy to let market. Despite continued government tinkering with things like stamp duty and mortgage tax relief, the potential for both capital growth and healthy yields has been sufficient to encourage many investors to grow their portfolios over the course of the year, according to specialist property investment agency Surrenden Invest.

“Interestingly, while the overall number of buy to let landlords in the UK has been falling, we’ve seen the best developments attract a huge amount of attention. The right blend of on-site facilities and city centre location are proving a winning combination, particularly in key regional cities.”

Jonathan Stephens, MD, Surrenden Invest

Based on its experience over the past year, Surrenden Invest has pulled together three property market lessons from 2018.

The first is that buy to let investors are maturing and becoming more discerning about where they put their money. For a property investment company like Surrenden Invest, which specialises in choosing developments that are a cut above the rest to present to its clients, it means that 2018 has been a good year.

Ancoats Gardens in Manchester is a prime example of this. Not only does the development enjoy a top notch location, just 300m from the massive NOMA site, but the quality of the apartments is just superb. Spacious, light-filled homes are complemented by an exceptional rooftop garden, coffee lounge and on-site gym, with an air of urban elegance and luxury flowing throughout.

The importance of regional cities such as Manchester is the company’s second 2018 take-away. Investors have largely fallen out of love with London (though odd pockets of potential do remain there, thanks to the sheer size and diversity of the capital’s property market). Instead, buyers are enjoying the superior yields offered by regional cities across the UK. The Totally Money Buy-to-Let Rental Yield Map 2018/2019 shows that Manchester, Liverpool and Newcastle between them were home to 10 of the 25 highest yielding postcode areas in the country over the course of the past year. Yields hit 9.79% in Liverpool, 8.89% in Newcastle and 7.07% in Manchester.

“Investors who buy in the right locations are enjoying impressive yields. Knowing regional markets inside out was more essential than ever for property investment companies looking to maximise their clients’ returns in 2018 – and will continue to be the case in 2019.”

Jonathan Stephens, MD, Surrenden Invest

Birmingham is one of the markets that Surrenden Invest expects to see more of in 2019. Home to the superb Westminster Works development, which provides 220 outstanding, loft-style apartments, the city is a hotbed of entrepreneurial talent and creativity. Its fast-paced property market and thriving business community both support its position as one of the most exciting investment locations in the UK for 2019.

Surrenden Invest’s final lesson from 2018 is that it’s important to keep a steady hand as Brexit approaches.

“Investing in property is ultimately about building up assets that provide returns over the medium to long term. This isn’t about flipping homes for a quick profit, but about building up a stable, steady stream of income using assets that themselves increase in value over the long term too.”

Jonathan Stephens, MD, Surrenden Invest

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