Posts

ukcity

Fastest Growing City Centre Populations

Fastest growing city centre populations

The Northern Powerhouse cities like Manchester, Liverpool & Birmingham are among the most desirable areas of the country to live. These cities have managed to attract young professionals through a growing number of high-paying jobs within the city centre. For instance, Manchester had an 84% increase in city centre jobs between 1998 and 2015, while Bristol and Leeds enjoyed increases of 42% and 34% respectively.

The growth of a city is a key factor in choosing the right property to invest in because as population grows, infrastructure improves, and the desirability of an area increases. These cities are already defined by their urban cafes, bars, restaurants and gyms that the young professionals are drawn to.

The Northern Powerhouse and key regional cities are worth considering for your next property investment.

ERE are property experts and you can speak to us about our current buy-to-let opportunities in these cities.

ukcity

property investment in Birmingham, buy-to-let investment Birmingham

Property Investment in Birmingham Smithfield Project is Booming

During the past 10 years, the city centre in Birmingham has transformed into a successful economic hub, second only to London.  For this reason, property investment in Birmingham is booming.

The appeal of city centre life is on the rise not least due to fantastic shopping facilities, excellent international cuisine and a buzzing nightlife.

Areas of affluence are emerging in the Convention and Jewellery Quarters as well as in Digbeth and surrounding areas. There’s no doubt that property prices are increasing rapidly.

£500 million regeneration plan

However, for those interested in property investment in Birmingham it’s still comfortably affordable for investors especially in Digbeth.  The £500 million Birmingham Smithfield regeneration project that has recently been announced spans over 34 acres.

Delivering 1,000 residential units, 100,000 m2 of floor space and 3,000 new employment opportunities, the site is expected to benefit the local economy by £470 Gross Value Added (GVA). It will also increase visitors to the area, currently at 40 million per annum, by millions more.

This 10 year Enterprise Zone initiative plan is creative, innovative and exciting. The development of residential zones, vibrant retail markets, cultural and leisure attractions will create an exclusive destination already deemed to be one of the top 10 global locations by Rough Guides.

The development is located next to the most popular shopping area in the city. Attracting 40 million shoppers annually, it accrues £2 billion in revenue for the local economy with over 50 million travellers using New Street Station.

Integration of the Midland Metro Tram, pedestrian walkways and cycling routes will facilitate easy access to the Curzon Terminal for the proposed HS2 (high speed rail). Improvements for public transport are also planned.

Birmingham’s £500m Smithfield city development plans unveiled

Buy-to-let Investment in Birmingham

As city life becomes more popular, with many people wanting to live permanently near to where the action and all facilities are, Birmingham Smithfield at Digbeth is an ideal investment opportunity.  Buy to-let investment property has always been in demand but never more so than the interest that has been shown this prime location.  Off plan investment for proposed apartments is significantly high.

Huge investment is currently being negotiated with a major Taiwanese conglomerate and with super rich Chinese.  To benefit from this project investors need to be decisive.

Building has begun

If you would like more information about property investment in Birmingham city centre and surrounding areas contact us today. Ere Property has offices in the UK and Hong Kong offering property investment services that are trusted by investors across the globe.

Take a look at details of investment property opportunities in Digbeth, Birmingham: https://ereproperty.com/property/enterprize-zone-birmingham/

Five things to help direct your property investment strategy in 2018

Investor appetite for buy-to-let property didn’t diminish after Brexit and the latest UK House Price Index report from The Office for National Statistics stated that average house prices in the UK increased by 4.5% in the year to October 2017. So what should property investors in the UK and abroad be thinking about in 2018?

Location: The North West will remain a strong spot for investors

Manchester was one of the buy-to-let hotspots of 2017 and the rapid growth in jobs and population saw investors and developers clamouring for real estate in the city. Liverpool sits slightly behind Manchester in terms of popularity but the huge student population and £5 billion redevelopment of the city’s waterfront means the city is almost keeping up with its neighbour.

However, Manchester and to a lesser extent Liverpool, have become less affordable for some investors who are starting to turn their attention to Yorkshire, Nottingham and the smaller growing outside of London.

London loses its appeal in 2018

After a long period of rising house prices across London and chronic undersupply, investors have been priced out of the market and renters are struggling to pay for less space. In London, tenants are paying £100 per sq. m. compared to around 15 sq. m. for the same price in Bradford.

The Royal Institution of Chartered Surveyors (RICS) have suggested that house prices in London and the south-east will fall in 2018 and the UK is set to outperform London in house price growth over next five years says JLL UK Residential.

Smaller regional areas get greater attention

Some of the UK’s smaller cities and towns may be less well-known to international investors but if they exhibit the classic market drivers of: an increasing population; expanding and growing job market; and new large-scale infrastructure projects, investors should be considering these places as viable options for buy-to-let investment.

With lower entry price points than cities like Manchester which are growing fiercely, combined with the promise of catch-up growth because of government programmes like the Northern Powerhouse and the Midlands Engine, these lesser known cities are good investment options in 2018.

Interest rates will stay low

The Guardian reported that another 0.25% hike is expected in the first half of the year, taking the Bank of England base rate to 0.75%, although that is likely to be the only increase in the year.

For those with a mortgage, that will add £22 to the typical £175,000 tracker mortgage, but with more than half of all borrowers on fixed rates, it will probably go unnoticed by most homeowners and will only marginally affect portfolio property investors.

Housebuilding to increase

The need for new homes has been recognised and has moved up the government’s agenda over the last year with the publication of the government’s housing white paper. Back in November, the UK Prime Minster Theresa May promised to take “personal charge” of solving the housing crisis.

As a result, new home building in the UK has picked up with 217,000 homes coming on to the market in 2016-17, up 20% on the year before. But that only brings the total back to levels seen before the financial crash, and a long way short of the 300,000 target set by the government. The supply side of the housing equation will be less pressing than in previous years.

Portfolio Items