Greater London, a global city and Europe’s most cosmopolitan capital. Between 1997 to 2012 London’s economy more than doubled, growing from £147 billion to £309 billion – this continues to grow. In the last few years, the outskirts of London became prime locations to accommodate the severe demand for housing in the capital.
As Property Investment experts, we wanted to share some key facts and stats on an emerging location, Sunbury on Thames, in Greater London to keep you ahead of the curve.
As experts in the buy to let property market, it is our obligation to keep our audience and clients educated with the latest information on the market and ensuring we are ahead of the curve on key investment trends in the country. Here is a snapshot of the economic drivers of the Liverpool buy-to-let market, we have identified a number of areas which we believe is forcing the property prices in the area to sore. Liverpool has been identified as one of the hottest areas in the UK to invest, and is benefiting from an increase in price year on year.
Below is a visual display of the economic fundamentals of our latest development, The Richmond. With over 30% of the development sold in its pre launch stages, demand is flooding in for this luxury development. Register your interest to find out more.
What is it?
Crossrail is the new high frequency, high capacity railway for London and the South East, also known as the Elizabeth Line. The current line is due for completion and will stretch from Reading, through Central London and to rural Essex.
Crossrail 2 is the newly announced extension of the Elizabeth line, linking the suburban railway network from Tottenham Hale to Wimbledon via a new tunnel through the centre of the capital. The line will stretch from Broxbourne in Hertfordshire (north) and continue through the heart of the capital to Surrey (south). In comparison to its counterpart, Crossrail 1 will connect the East and West of Greater London, with Crossrail 2 focusing on the North & South – splitting the capital and its suburbs into 4 sections.
The Crossrail effect
Since the launch of Crossrail (the Elizabeth Line) due to be completed in 2019, connecting London with Berkshire, Buckinghamshire and Essex; property prices have shown growth rates of up to 50% in some cases this has come to be known as the ‘Crossrail effect’. A fantastic example of this would be the Romford area of Essex, the average property in vicinity of the station has risen from £241,027 to £359,058, which is an increase of 48.9pc.
What does this mean for investors?
Historically, areas in which Crossrail runs, have experienced sharp growth in property prices. Investing into areas that will be included on the Crossrail 1 and 2 lines will mean a low price point and continual growth year on year til the lines full completion – meaning good news for buy-to-let investors targeting commuting families and young professionals. A great example of this is Brentwood, in the east of England, where the average price of a three-bedroom semi-detached family home in Brentwood is £500,000, compared to £325,000 in 2013. In the last year alone, prices have risen by 11 per cent, while other areas in the East of England only grew by 6.4 per cent, according to Rightmove’s House Price Index.
Fionnuala Earley, residential research director at Hamptons International, says: “In the long-term, both Crossrail 1 and 2 will be a significant driver of regeneration and new development, acting as an accelerant to kick start long planned schemes. Locations close to both existing and new Crossrail stations have become the focal point of major regeneration projects across the route outside of central London”
Areas to watch
With developers rushing to the London commuter belts to take advantage of the projected property price increase, we have identified areas which we expect to benefit from the “Crossrail effect” :
Tax change is the biggest issue for buy to let landlords in the UK with many having concerns about how they will manage their business with the changes to mortgage relief finance.
But they should not worry about it, instead taking it as part of the cost of running a business, the Property Wire panel debate on the future of buy to let in the UK heard.
The debate panellists stressed that buy to let is a business, and needs to be run as a business. They encouraged landlords to adopt an attitude that they are in it to make money and therefore they need to make sure they are on top of their costs.
There was a suggestion that London based landlords could look outside of the capital if they are expanding their portfolios in order to improve their yields but there is always the consideration that being near the property you let can be beneficial in terms of building a relationship with tenants and keeping an eye on the property.
But there is no doubt that finding a property at a lower price could be cost effective in terms of paying less stamp duty, achieving higher yields and potentially benefitting from higher capital growth.
Tony Gimple of Less Tax for Landlords, said he believes that landlords should concentrate on yields foremost rather than capital growth and let the economics speak for themselves. He is a firm believer that tax changes just need to be accepted as part of running a business and he does not think the raft of recent changes will put landlords off from investing in the future.
Whether London landlords should look outside of the city for future investment was the subject of intense debate. Richard Blanco, himself a landlord with several properties in London, is not in favour of investing in other cities even although he described the London rental market as ‘dysfunctional’. Blanco, who was also a representative of the National Landlords Association,
There was discussion about the effect of changes on the value of rents and Paul Mahoney, founder and managing director of Nova Financial, explained that it is the market that will determine the rent not what a landlords think they can charge.
Mahoney also pointed out that yields are important in the current market and he believes that cities other than London can make better financial sense, citing Manchester, Birmingham and Liverpool as examples.
There was plenty of advice for landlords on insurance and replying to a question from the audience about Airbnb being an option, they collectively dismissed the idea in London where there is a 90 day limit on renting short term. They also pointed out that such a move could affect insurance and mortgage conditions.
Andy-Wynne Jones, senior underwriting manager at Simple Landlords Insurance, provided plenty of advice. He explained that landlords can save money if they take on risk by looking at their policy excess levels, perhaps accepting a higher excess for lower monthly insurance payments.
There was a general consensus that Brexit is an unknown entity at presents with it virtually impossible to say how it might affect the private rented sector in the UK. The overwhelming conclusion was that landlords need to take change in their stride and remember that they are running a business and adopt the necessary strategies to make it a successful one.
Article Sourced from: Property Wire
Full credit and copy right belongs to Property Wire
The largest container ship to call at the Port of Liverpool arrived this week. The HS Paris is the first post-Panamax vessel to stop at Liverpool, and has a capability of carrying more than 6,500 shipping containers.
Previously, the Port of Liverpool’s existing container terminal could only accommodate vessels with a capacity of up to 4,500 shipping containers.
The HS Paris called at Liverpool using the new £400m Liverpool 2 deep water container terminal which opened in November, and increased the size of vessel that the Port can accommodate.
Post-Panamax is a desciption within the shipping industry for vessels that could not fit through the Panama Canal, a significant 48-mile waterway that connects the Atlantic Ocean and Pacific Ocean, prior to its expansion last year. The original locks were 110ft wide, meaning that it couldn’t take wider, more modern ships.
While the new Liverpool 2 berth can accommodate the largest deep sea container vessels, take-up for use of the terminal has been slow. The berth opened a year late due to weather delays, and last month suffered a 10m-wide sinkhole, although according to Peel Ports this did not impact on operations.
Mark Whitworth, chief executive of Peel Ports Group, said: “This is a huge milestone for Peel Ports and the Port of Liverpool. The whole team is delighted to welcome HS Paris to the city for the first time. While we have the capacity to handle vessels up to 20,000 TEU, smaller post-Panamax ships are still very much part of our overall strategy and it’s essential that can accommodate those too. We can now do that thanks to our £400m investment at Liverpool2, providing a shorter route to market for UK importers and exporters, which reduces their costs, congestion and carbon emissions.”
Peel Ports recently announced that it had secured 150 advocates for its ‘Cargo200’ initiative. The campaign calls on importers and exporters whose goods begin or end their journey in the North of the UK to switch delivery of ocean freight from South East ports to the centrally-located Port of Liverpool.
Peel has previously said it is hoping to increase Liverpool’s share of the UK container market from 8% to 20%.
Article Source: www.Placenorthwest.co.uk
Accreditations: The information in this article has been researched and written by Place North West. Please click here to visit the original article.
A newly released video from Invest Liverpool has highlighted the city’s vast range of industries, its technological prowess and its strong position as a manufacturing stronghold in the new, post-referendum world.
In just over three minutes, the beautifully shot film takes the viewer on a journey through some of this fascinating city’s key business sectors, from virtual engineering to virtual reality, office design to app design and car building to ship building. The short film showcases the breadth of skills available in Liverpool, as Stuart Johnson, Business Development Manager at Prime Centrum, observes,
“Invest Liverpool’s video perfectly captures the essence of Liverpool’s dynamic, modern business sector. The city’s growing reputation for creativity, innovation and high quality manufacturing is drawing interest from around the world. From large companies to private individuals, investment in Liverpool is driving innovation and growth across the city.”
Liverpool’s connections are a key strategic factor in its favour. The largest port on the UK’s west coast, the city is connected to more than 60 European destinations through Liverpool John Lennon Airport and is just two hours from London by train. The coastal connection means that Liverpool is perfectly positioned as a leading maritime knowledge hub, as well as being an important base for subsea diving operation services.
One of the most interesting elements of the Invest Liverpool video is its inclusion not just of the city’s businesses and services, but also of The Studio School, a digital and creative educational experience that is fostering the next generation of bright young professionals for the city’s future.
“There’s a really long-term approach here,” continues Prime Centrum’s Stuart Johnson. “From the emphasis on research and development facilities to leading universities, there’s a sense that Liverpool is taking the future in its hands and shaping an intelligent, cosmopolitan workforce that will benefit the city for generations.”
Prime Centrum’s role in that future is to house Liverpool’s swelling workforce. Its latest development, Parliament Residence, offers 44 stunning one and two bedroom apartments in a thriving waterfront location, with a private roof terrace lounge providing spectacular views over the UNESCO World Heritage waterfront.
Those wanting to know more are invited to contact the Prime Centrum team and download the brand new Prime Centrum Liverpool City Guide 2016 for free.
The implications of the 2016 stamp duty change, whereby buyers of additional properties were charged an extra 3% in stamp duty, were not lost on anyone with an interest in buy-to-let. Prior to the April 2016 increase, there was a marked uptick in property purchases for buy-to-let purposes. However, the market remains healthy following stamp duty increase – it’s just that investors have changed their outlook.
Stuart Johnson, Business Development Manager at Prime Centrum, explains,
“Before the stamp duty increase, investors were incredibly focused on the potential yields of buy-to-let properties. Now, we’re seeing investors take a more considered approach to the market. Their buy-to-let investments are as much about long-term capital growth as about sustainable yields.”
Of course, yields will always be important to the buy-to-let sector. But now renewed attention is being paid to the potential for capital gains. Liverpool offers an excellent example of this shift in priorities. The city is one of the highest yielding in the country so far as buy-to-let properties are concerned, but investors are increasingly looking at its capital growth potential as well.
Thankfully for Liverpool, the numbers certainly stack up so far as capital gains are concerned. The Savills five year forecast projects property price rises of 18.2% for Liverpool, making the city a very tempting prospect for buy-to-let investors who are happy to sit back and enjoy their yields for years to come, at the same time as their property is rising in value.
Even more interesting is the opportunity to invest in under-valued areas of the market. Again, Liverpool provides the perfect example. Parliament Residence, the city’s most iconic waterfront real estate development, is being offered to the market at an early investor discount of 22%, with investment from £109,900. The price means instant equity for investors, as well as the potential for the gains projected by Savills over the years ahead.
With the stamp duty changes altering the market deeply, it is solid investment prospects like Liverpool that will serve to keep the buy-to-let dream alive for many investors over the months and years ahead.
For further details please contact the Prime Centrum team. You can also download the brand new Prime Centrum 2016 UK Buy-to-let Guide free of charge.
Data just released from Bilfinger GVA has shown that office lettings in Liverpool during Q1 2016 have shot up above the five year average. In total, the city centre office core saw some 90,000 sq ft of lettings during Jan – March 2016, compared to a quarterly average of 80,000 sq ft over the past five years.
The huge bump in demand for office accommodation in central Liverpool indicates growing pressure on the city’s housing stock. Not only was the Q1 2016 figure above average, but so too were the lettings figures during Q3 and Q4 2015, both of which were above 100,000 sq ft.
As new companies move into the thriving city centre – and existing companies expand the amount of space they lease – housing experts are watching closely to see the reaction of the local residential property market. Liverpool city centre living is much in demand, with young professionals and their families seeking a central location from which to live, work and play.
According to the January 2016 Liverpool Economic Briefing, private sector jobs in the city grew by 8.1% between 2009 and 2014 and the increased take up of office lettings in late 2015 and early 2016 indicates that this growth is continuing apace. At the same time, resident earnings have risen significantly: by 47% from 2002 to 2015, according to the briefing.
With more jobs available and more money to spend, many professionals have chosen to opt for a city centre lifestyle. This has created a surge in demand for Liverpool buy-to-let properties, particularly in and around the huge waterfront regeneration area.
As the business community continues to expand, the demand for such residences is expected to increase further, making Liverpool a particularly attractive city in terms of those looking for a profitable buy-to-let investment.
Contact the Prime Centrum team today for further details.
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Prime Centrum’s latest Liverpool launch – One Wolstenholme Square – is whipping up excitement among buy-to-let investors with an eye for luxury developments with attractive yields.
The development offers a rare opportunity for investors to purchase luxury residential studio apartments in the heart of Liverpool, setting a new standard for L1 living. Demand for such apartments is exceptionally strong. Young professionals have been flocking to Liverpool city centre for more than a decade. A report from Centre for Cities showed that the city centre population more than doubled between 2001 and 2011, with the growth fuelled by young professionals. By 2011, more than 50% of the city centre’s population was aged between 22 and 29.
The huge boom was the result of young professionals heading into the city centre for work. Data from Direct Line for Business has shown that more than half of the city’s housing stock falls within the rental market, but still many young professionals who command healthy salaries but lack the high end accommodation to suit them. Enter One Wolstenholme Square!
Minutes from Liverpool One, Commercial District, Albert Docks and the waterfront, One Wolstenholme Square offers investors an incredibly affordable entry to the lucrative UK buy-to-let sector. Liverpool is one of the UK’s top ten locations for buy-to-let property investment and investors in One Wolstenholme Square can look forward to 8% NET returns assured for 3 years. Investment starts from £79,950, with a 20% early investor discount providing scope for great growth for experienced and first time investors alike.
Liverpool city centre house prices have risen by 40% in the past three years, according to Zoopla. In many areas of the city centre the rise has been greater, with those moving in for jobs driving up property prices. The trend is expected to continue, with One Wolstenholme Square presenting strong potential for capital growth during construction.
For full details, download the One Wolstenholme Square brochure or contact the Prime Centrum team.
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