• Changes to ‘Green Tax’ legislation could cost buy-to-let landlords up to £5,000
• From April 2018 loans are no longer available to boost a property’s energy efficiency – expected to affect approximately 330,000 investors
• One Cross Street in Manchester uses low-carbon tech to be one of the city’s most energy-efficient properties (Surrenden Invest)

The UK buy-to-let landscape altered significantly during the first half of 2016, however, the industry has shown few signs of faltering. Advisors surveyed in Paragon Mortgages’ latest Financial Advisor Confidence Tracking (FACT) report revealed that 24% of their business in Q1 2016 consisted of buy-to-let, a modest 1% increase from the previous quarter.

Changes to the rules surrounding the ‘Green Tax’ could disrupt this seemingly endless upward trajectory with landlords liable to spend up to an additional £5,000 on their properties.

Proposed by the Department for Business, Energy and Industrial Strategy, the ’Green Tax’ will see landlords having to pay in advance for property improvements such as cavity wall filling, insulation and efficient boilers. Designed to save tenants money on rising fuel expenses, the government are predicting 11% in savings for the average household by 2020.

From April 2018 all properties must meet a Band E energy efficient rating at least, but with loans no longer available to boost a property’s energy efficiency and landlord’s liable for the required works, it is expected to affect approximately 330,000 investors.

There are however opportunities arising that could cause this latest change to become redundant for buy-to-let investors. Property consultancy Surrenden Invest’s most recent development in the heart of Manchester, One Cross Street, uses modern low-carbon technology to ensure the building is one of the city’s most energy-efficient.

Jonathan Stephens, Managing Director of Surrenden Invest, comments,

“This change to legislation for buy-to-let landlords will cause savvy investors to seek out opportunities that already meet the new requirements, a future-proof investment. With a Band A energy efficiency rating, One Cross Street is win-win, allowing investors to be exempt from the new ‘Green Tax’ and its residents to benefit from significantly lower running costs.”

One Cross Street is situated in the city centre just 5 minutes’ walk from Manchester’s prime business and exclusive leisure district, Spinningfields, as well as from the luxury shopping district New Cathedral Street. Redeveloped from the stunning structure of a former cotton mill, the original building of One Cross Street was built circa 1907.

With prices starting at £130,323, the property is formed of 34 luxury apartments featuring elements of the existing structure left such as exposed brick and beams. The project has also included the creation of a modern new-build extension which will include two new penthouse levels featuring floor to ceiling glass walls as well as a beautiful roof terrace available to all residents. Properties also come fully furnished with high end fixtures and fittings.

For more information, visit www.surrendeninvest.com or contact Surrenden Invest on 0203 3726 499.

• Liverpool city centre population increases by 160% in a single decade (Centre for Cities)
• Prime town and city market prices now 3% above 2007 peak (Knight Frank)
• New development The Strand Plaza, Liverpool epitomises luxury living for young professionals (Surrenden Invest)

Knight Frank’s latest Prime Country View report highlighted the rise of urban prime in the UK over the past decade. According to the report, prime property values in town and city markets have jumped 26% since 2005, compared to just 7% for rural properties. Whilst rural homes languish at 13% below their 2007 peak, prime city residences have now exceeded their former peak by 3%.

These figures certainly tally with the experiences of those in Liverpool. Centre for Cities has unveiled a report which shows the number of people residing in the city centre more than doubled in the decade to 2011. According to the report, the rise was fuelled by young professionals: more than half of Liverpool city centre’s residents were aged between 22 and 29 by 2011, quite an impressive figure that reveals a new trend in city centre living.

The availability of jobs was the main reason behind the huge rise in those looking to live in the city centre, but that’s not the only attraction of living centrally, as Jonathan Stephens, Managing Director of property consultancy Surrenden Invest, explains,

“We’ve seen a real rise in demand for luxury city centre living over the past decade. Young professionals are no longer happy to settle for mediocre accommodation in the suburbs and a tiresome commute to and from work. They want a luxury pad that’s ideally located for work – as well as for accessing the city’s leisure and cultural pursuits during evenings and at the weekend. It’s all about location AND luxury – prime developments need to be well located and offer additional features like concierge services to really pique the interest of contemporary young professionals of today.”

Stephens cites the limited release of apartments at The Strand Plaza, Liverpool, as the perfect example. The building is set within Liverpool’s UNSECO World Heritage waterfront area – a prime city centre location. The striking exterior opens up into well-appointed living spaces designed to target young professionals with a taste for the finer things in life. Apartments come fully furnished and with premium amenities, such as the 24-hour concierge service.

One bedroom apartments at The Strand Plaza cost from £135,000 to £165,000, with two bedrooms priced from £185,000 to £250,000, with 6.5% NET assured return.

Such developments will serve to meet the growing demand for luxury accommodation that cities like Liverpool are experiencing. As the Centre for Cities report observes, the higher cost of properties that provide city centre living is no longer the deterrent that it once was for young people just starting out on the career ladder,

“These people are willing to pay a premium to live there, in order to access the amenities that city centre living offers – being able to walk to work, being near cultural attractions, being near shops and restaurants, and being surrounded by other young, professional, single people.”

While Liverpool’s overall city centre population rose by 160% between 2001 and 2011, its younger residents (aged 22-29) more than quadrupled in number. The dynamic, entrepreneurial spirit of this city-based community is behind Liverpool’s growing reputation as the startup capital for the North, with Santander having opened its first business incubator there in 2014. Liverpool is also home to the SparkUp accelerator programme and Launch22 has opted for Liverpool as well, opening its first incubator outside of London there.

This business and entrepreneurial ethos has spread throughout the city and is based on a solid and rapidly improving financial foundation. According to PwC’s Good Growth for Cities 2014 report, Liverpool saw the largest improvement in income equality and the fourth largest rise in income per head out of any UK city.

With so many bright young things flocking to the city centre to be part of Liverpool’s future, it will be fascinating to see how much better the city performs over the coming years, with all this creative and passionate talent at its disposal, and in turn to witness the ever-growing demand for young luxury city-centre living.

For further details, visit www.surrendeninvest.com, email info@surrendeninvest.com or call 0203 3726 499.

• 16% of people would withdraw an offer on a property with a low energy efficiency rating (Populus)
• Climate change key cause of conflict in Syria (Prince Charles)
• Horizon London showcasing sustainable city living (Surrenden Invest)

Green living is becoming increasingly important to homebuyers. In a recent survey by Populus, 16% of respondents said that a low energy efficiency rating would be sufficient for them to withdraw their offer on a property. A further 23% said that poor energy efficiency would lead them to reduce their offer by hundreds of pounds, while 36% would reduce it by thousands.

It is a message that has not been lost on the UK. From the government’s solar panels initiative to the academics at De Montfort University who are trialling a revolutionary eco heating system, which essentially stores heat in the garden soil during the summer for use during the winter, the housing market is buzzing with new ways to make the residential accommodation leaner and greener.

But it’s not just country piles with huge gardens that can take advantage of innovative modern solutions to saving energy. A new building – Horizon London – is showcasing sustainable living in the big city. Jonathan Stephens, Managing Director of London-based property consultancy Surrenden Invest, explains,

“Horizon London is, quite simply, the building of the future when it comes to city life. Every element of the building has been carefully planned with sustainability in mind. This isn’t just a token nod to greener living, but a fully-fledged commitment to creating the kind of apartments that people can be proud to own due to their sustainable credentials.”

Located in Ilford, just a few minutes’ walk from Seven Kings station and 10-12 minutes’ walk from Ilford Station, Horizon London offers sustainable living for a sustainable community. The building’s ‘living’ walls not only create a stunning visual effect, but offer a range of benefits. According to Green Over Grey, living walls improve air quality, provide buildings with a shield from sun, rain and thermal fluctuations, reduce stress, enhance wellbeing and dampen noise pollution. They also enhance a property’s value by being in tune with future demand.

Horizon London also features photovoltaic cells on the upper levels, rainwater harvesting and a centralised heating system. These features work in tandem with the building’s smart design to ensure that fewer resources are used when compared with similar buildings that have not incorporated sustainability into their design. Essentially, Horizon London consumes less energy and less heat escapes the building.

As well as enticing investors looking for a modern, socially responsible way into the UK’s booming buy-to-let market, Horizon London’s green features are also appealing to tenants. The living walls create a beautiful backdrop to daily life, while the fact that less heat escapes the building means that resident’s energy bills are reduced.

“What we’re seeing at Horizon London is seriously sophisticated sustainable design coming to life,” continues Surrenden Invest’s Jonathan Stephens. “Each element of the building has been designed to work in harmony with the others. It’s about taking a holistic approach to sustainability and creating something that is superior to the sum of its parts, even when each of those component parts is already an excellent feature. Investors have been absolutely delighted with the result.”

The impact of climate change is still poorly understood around the world, but there is a growing body of evidence to show that its impact is not just a threat to the future, but a very real force behind global unrest today. A study by the University of California found that greenhouse gas emissions exacerbated the drought in Syria from 2006-2010. The drought led to mass movement of people from the country to the cities, even as food stocks dwindled and prices rose. Though there were other factors contributing to the conflict there, the role that climate change played is not to be underestimated according to sources as diverse as Prince Charles and political activist Charlotte Church.

It can be hard to recognise the full impact of buying into a sustainable future today, but it is actually possible to demonstrate a chain of events that starts with buildings like Horizon London and ends with fewer lives being lost around the world. Now that’s a truly sustainable commitment to a better world.

Prices at Horizon London range from £233,000 to £515,000.

For further details, visit www.surrendeninvest.com, email info@surrendeninvest.com or call 0203 3726 499.

• Fewer than half of those born in 1990 will own their own home by age 40 (Savills)
• Custom House Crossrail station area prices to rise by 40.5% by 2020 (JLL)
• Riverside buy-to-let apartments available from £390k (Surrenden Invest)

Newly released data from Savills has thrown into stark relief the pace at which home ownership is falling in the UK. Issue three of the Residential Property Focus 2015 reveals both the rate at which home ownership has fallen since 1960 and the rate at which it is projected to go on falling for those born in the 1980s and 1990s.

According to the Savills figures, 53% of those born in 1960 could look forward to owning their own home by the age of 30, rising to 71% by the age of 40 and 79% by the age of 50. This compares to just 35% of those born in 1980 and 26% (projected) of those born in 1990 being able to own their own home by age 30. And it is clear with these figures that it is the 1990 cohort that is set to suffer the most. By age 40, the majority of the group will be in rented accommodation, with just 47% predicted to own their own home.

Of course, falling homeownership levels aren’t bad news for everyone. The figures paint a promising picture of a profitable future for the UK’s buy-to-let sector. Jonathan Stephens, Managing Director of Surrenden Invest, a London-based property consultancy specialising in high yielding buy-to-let investments, explains,

“Quite simply, falling rates of homeownership mean rising rates of renters, so the growing situation in the UK creates a substantial opportunity for those looking to make their money work for them by investing in residential real estate. Of course, alongside this it is important to remember that the area in which you invest is important too – a few miles difference, particularly in major cities like London, Manchester and Liverpool, can have a big impact on yields.”

This is particularly true of London properties. House prices are projected to rise by 21.5% in central London and by 18.2% in outer London over the next five years, according to Savills. Yet figures from JLL predict rises of nearly double those averages by 2020 in many areas of the capital, all good news for those able to buy.

Yet there are even more substantial profits to be found for those savvy investors who look carefully. Property around the new Custom House Crossrail station, for example, is projected to rise in value by 40.5% over the next five years, based on the JLL forecasts, with the same area expected to achieve rental price growth in excess of 28% by 2020.

Royal Victoria Residence is located just minutes from the planned Custom House Crossrail station. The superior one, two and three bedroom apartments, due for completion towards the end of 2017, will benefit from premium amenities, including a 24-hour concierge service. Curved balconies, views of the Thames and Canary Wharf and sleek interiors are bound to prove popular with the demands of modern tenants, making this one of London’s key riverside investment opportunities over the coming years. Prices range from £390,186 to £854,459.

Soaring levels of investment in London’s Royal Docks are also likely to impact positively on property prices over the coming years. Surrenden Invest’s Jonathan Stephens comments,

“The revitalisation programme for the area around London’s historic Royal Docks is massive. There are some vast mixed-use projects underway and others still under discussion. Royal Wharf at £3.5 billion, for example, and Silvertown Quays at £1.5 billion are going to have a huge impact on local employment levels and economic output growth. Altogether some £22 billion of investment potential has been identified in the area.”

The intense redevelopment makes the Royal Victoria Residence an even more exciting prospect for buy-to-let investors. Certainly with the rate of home ownership projected to continue falling over the years ahead, it will be developments like this that make up the future of London’s housing market.

For further details, visit www.surrendeninvest.com, email info@surrendeninvest.com or call 0203 3726 499.

• London property value increasing by almost £5 per hour (Urban.co.uk)
• Ilford property prices tipped by rise by 40.7% by 2020 (JLL)
• Average property investment yields up 2.7% over the past year (ONS)

Whilst property prices across the UK are known to be rising, in some cases sharply, the highly profitable bubble that is the London market has been highlighted with the release of new data. Data released by The Land Registry has been calculated by Urban.co.uk to reveal that properties in London are increasing in value by almost £5 per hour, providing investors with an impressive income stream.

With interest rates on many forms of savings at a record low, the attraction of making £4.99 every waking hour (plus £40 or so while you sleep) are not to being ignored by many savvy buyers. But is the pace of the market sustainable?

Jonathan Stephens, Managing Director of Surrenden Invest, a London-based property consultancy specialising in high yielding buy-to-let investments, believes so. He explains,

“London is such a demand-driven market that it operates almost entirely independently of anywhere else in the UK. There’s a lack of physical space for new build properties and those that are being built cannot keep up with the rate at which they are being demanded. Nor is the issue likely to go away any time soon. In fact, with the huge growth in the UK’s population, the situation is set to be exacerbated further still.”

Stephens is referring to the projection from the Office for National Statistics (ONS) that the UK population will surpass 70 million in the next 12 years. An increase of 4.4 million people by 2027, when the housing market is already creaking at the seams, London is likely to absorb a large proportion of the increase.

The average property price in the capital, of £499,999, is more than double the average of the rest of the country. Sophisticated investors are using this price point as a guide when it comes to purchasing properties with good prospects for capital growth.

Surrenden Invest’s Horizon London in Ilford is one such project that is precisely what investors in the capital are looking for, with the one and two bedroom apartments ranging in price from £225,727 to £498,925. According to Jonathan Stephens, Ilford is one of London’s most interesting hotspots right now,

“Ilford offers excellent value for property investors, with average prices there some 34.1% lower than the London average. With the advent of Crossrail we’re expecting a big increase in property prices in coming years and Ilford’s population growth is further enhancing the situation. The population is expected to grow by 22.5% by 2028 and house prices are forecast to increase by 40.7% by 2020, according to JLL. This makes for an extremely interesting time to be a part of Ilford’s property market and savvy investors are snapping property up apace.”

Ilford is one of the areas included in London Mayor Boris Johnson’s recently released ‘City in the East’ masterplan, which examines factors such as Crossrail and HS1 and their impact. From any angle, Ilford is set to experience an intense period of change, with many investors keen to be a part of the story sooner rather than later.

The other element to the UK’s residential real estate story, at least so far as buy-to-let investors are concerned, is of course yields. Across the UK, yields have risen by 2.7% over the past year, according to the ONS, and the improved potential for returns is encouraging ever greater numbers of individuals to turn to developments such as Horizon London to achieve a healthy income.

With London prices progressing on an upward trajectory, and setting new records all the while, Ilford is a key location for future growth and now is the time to get on board.

For further details, visit www.surrendeninvest.com, email info@surrendeninvest.com or call 0203 3726 499.

• Home sales growing fastest in north and north west England (LSL)
• Manchester ranked 17^th out of all of Europe’s cities by LaSalle
• Award-winning residential property available in Liverpool from £109,950 (Surrenden Invest)

Property investors are increasingly heading north, as England’s north-south divide becomes more starkly apparent. Recently released data from LSL Property Services shows that, across the UK, September has been the best month for home sales since 2007. It is the northern regions that are experiencing the fastest growth: in the three months to August 2015, the largest year-on-year increase in property sales was found to be in the north and north west of England.

Manchester’s property is particularly attractive right now, with the city generating huge interest thanks to its position at the heart of the Northern Powerhouse initiative. Structural change in Manchester is sufficient to have positioned the city 17^th out of the whole of Europe in LaSalle’s 2015 European Regional Economic Growth Index.

Jonathan Stephens, Managing Director of Surrenden Invest, a London-based property consultancy specialising in high yielding buy-to-let investments, explains more,

“Experience has taught us that investors like the prestige of working with a property company based in London, but when it comes to where they invest, the northern half of England is definitely attracting the greatest amount of interest. The lower property prices and the huge demand projected in cities like Manchester and Liverpool over the next decade are simply more attractive than a lot of opportunities in the south of the country right now.”

Surrenden Invest has been involved in the Manchester property market for some time, having been quick to identify the city’s potential as a cornerstone of the UK’s buy-to-let boom. The bespoke luxury apartments of X1 Plaza @ Eastbank, located in Manchester’s city centre and available for £120,000 to £180,000, offer an assured 6% net return. Perfectly situated for young professionals, the apartments provide stylish homes in a high demand growth area – just what investors are looking to the north to find.

Following this ‘north is best’ trend, Liverpool is also highlighted in the LaSalle European Regional Economic Growth Index, taking 68^th position as one of a handful of UK regional cities showing “consistent and robust scores.” These cities are noted for their strong employment scores, when compared with their German and Dutch counterparts.

A thriving city with a strong cultural offering, Liverpool has undergone numerous regeneration projects over the past decade, pushing forward a modern agenda when it comes to contemporary city living. The Kings Dock and Lime Street areas have been included in a recent £1.5 billion regeneration scheme, while the latest plans for the £290 million regeneration of Anfield are due to go on show this month.

When it comes to residential investment, it’s all about the city centre, with young professionals crying out for new, high spec homes that are conveniently located both for work and for the myriad entertainment and leisure options that Liverpool city centre offers. Specialists in spotting a high yield opportunity, Surrenden Invest is answering demand with The Terrace at the Quarter. The award-winning city centre development is just five minutes from Albert Dock. Prices range from £109,950 to £199,950, with 6% per annum assured for three years, and completion is due by Q4 2016.

Such developments sum up perfectly why the north-south divide is increasingly stark when it comes to buy-to-let property investment. Being able to buy a desirable city centre home at an affordable price, in a location where demand is intense, is highly appealing to property investors. With an average property price of £493,026 in London (Land Registry, August 2015), investors in the north can buy as many as four brand new, luxury apartments for the same price as one average London pad and still have change left over. And with figures like that, it seems likely that the north-south divide in England’s property market is going to remain in place for a long time to come.

For further details, visit www.surrendeninvest.com, email info@surrendeninvest.com or call 0203 3726 499.

• Manchester’s population to grow from 7 million to 15 million by 2025 (BNY Mellon)
• Manchester city centre is number 1 UK property hotspot for next 10 years (HouseSimple)
• Victoria Station expansion to allow 700 more trains per day by 2019 (BDP)
• X1 The Plaza at Eastbank to provide homes worthy of the Northern Powerhouse (Surrenden Invest)

The Manchester 2025 vision freshly set out by global investment firm BNY Mellon projects an exciting, prosperous future for the city at the heart of the Northern Powerhouse. The city is likely to attract ‘significant investment’ over the coming decade, as well as creating more than 5,000 new jobs per year, according to the detailed report.

One of the most fascinating points of Manchester 2025 is its population prediction. The report states that Manchester’s travel to work population will increase from the current 7 million residents to 15 million in 2025 – that’s a doubling of the population in just ten years.

The astonishing figure would place huge pressure on the city’s resources. While road and rail link improvements are already well underway – they are some of the reasons behind the projected growth – Manchester will need to build a large number of houses in order to welcome so many new residents.

Jonathan Stephens, Managing Director of Surrenden Invest, comments,

“Manchester is a modern, thriving city and the Northern Powerhouse initiative has focussed a lot of attention on it. It is already a great city in terms of transport links and the modern railway revolution that is currently taking place there is going to be a game-changer in terms of improving access. The population projection, though an incredible figure, is definitely realistic once you look at everything that is already underway or that is planned for Manchester over the next ten years.”

Those plans include the expansion of Victoria Station to allow 700 extra trains to run per day by 2019 according to architects BDP – a yearly passenger capacity increase of 44 million. Manchester’s Oxford Road, Ordsall Chord and Piccadilly are also on track to be substantially upgraded.

Manchester Airport is also on the list of beneficiaries when it comes to expansion, with a £1 billion plan to add more than 10 million passengers in a just one decade. The airport expansion is said to be the biggest single construction project ever to take place in the Greater Manchester area.

With such large-scale development in the pipeline and a booming population, Manchester needs to race to provide sufficient housing as the coming decade unfolds. According to HouseSimple, Manchester city centre is the number one property hotspot in the UK for the next ten years. The average house price there is currently £155,029, compared to a national average of £204,674, revealing substantial scope for rises as the population increases so swiftly.

“Remember, too, that these new urban dwellers are going to have pretty high standards when it comes to housing,” continues Surrenden Invest’s Jonathan Stephens.

“The young professionals flocking to the city are going to want well-located, high spec homes with plenty of amenities like secure parking and on-site gyms. If Manchester is serious about being the centre of the Northern Powerhouse then its property sector needs to be building homes that are worthy of that position.”

X1 The Plaza at Eastbank perfectly embodies the quality of housing that Manchester needs to be building. Consisting of 196 one, two and three bedroom apartments, along with 11 penthouses and seven townhouses, the development is within walking distance of the city centre. It is also ideally positioned for access to Manchester Piccadilly Station and Manchester Airport, providing a host of easy local, national and international travel options. The building also features 102 private, secure parking spaces and an on-site gym for residents’ exclusive use. Prices range from £124,000 to £180,000, with 6% assured net return.

UK investors with an eye for buying now for the future are expected to take a huge interest in Manchester over the coming years. Nor is investment limited to those from the UK. David Cameron has recently been selling the Northern Powerhouse to the US in order to encourage investment from across the Atlantic, in much the same way that George Osborne has previously pitched the concept to China.

As the BNY Mellon Manchester 2025 vision becomes reality and global attention increasingly focuses on the city, all signs are that residential real estate investors in Manchester are set to have a very happy ten years ahead of them.

For further details, visit www.surrendeninvest.com, email info@surrendeninvest.com or call 0203 3726 499.