Issue number 4, Q1 2021
content
Market Movement Over Q4
Newcastle Central
Construction Updates
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2021 Developments Q1
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Team round up: 2020 and how investors should be investing in 2021
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Newcastle Central Profile
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Market Movement Over Q4 4
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OCTOBER
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UK mortgages hit 13 yearhigh but consumers curb other borrowing:
Rent levels - London drops but most regions still rising:
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T
ritish mortgage approvals hit their highest in almost 13
years in August, underscoring the
he latest monthly rental index produced by insurance
provider HomeLet shows a four
scale of the post-lockdown
per cent surge in the all-UK
bounce-back in the housing
average rent over just three
market, but consumers turned
months, but big differences across
more cautious about day-to-day
different regions.
borrowing, Bank of England data showed.
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Read more.
Read more.
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More Brits invest in holiday homes across UK:
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rits are investing in their own staycation spaces at a record-
breaking pace, ahead of the autumn and winter months, according to holiday home operator Park Leisure. YouGov data shows that over three quarters of Brits (77%) have no intention of travelling abroad this year. In fact, 43% say they intend to take more or the same number of UK trips than they usually would.
Tenant demand hits four-year high:
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Read more.
ew research carried out on behalf of Paragon Bank has
revealed that during Q3 tenant demand hit a four-year high, with landlords in the North West and South West reporting the strongest levels of growth.
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Read more.
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Act fast or you may miss stamp duty deadline, homebuyers warned:
“S
evere delays” and a “large backlog” in home sales
may result in people missing out on the stamp duty holiday.
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Read more.
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NOVEMBER
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House price growth rises to 5.8%:
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early house price growth increased to 5.8% in the year to
October 2020, Nationwide’s House Price Index has found. This represents an increase from the 5.0% growth in September 2020. Monthly price growth has slowed from 0.9% between August and September to 0.8% between September and October.
Tenant demand surges in the west of England:
t
Read more.
enant demand rose in North West and South West in Q3 2020,
according to 44% of landlords. A sizable proportion also reported rising tenant interest in the East Midlands (40%), South East (except London, 38%), the North East and Yorkshire and the Humber (both 38%), Leeds Building Society research shows.
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Read more.
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ast month average rents in Britain rose for the first
time since the start of the first lockdown, up 1.4% year-on-year to ÂŁ1,041 per month. Read more.
Housing market set for busiest Christmas in more than a decade:
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Rents in Great Britain rise for the first time since March 2020:
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he property market is set to have its busiest pre-Christmas run-up in
more than a decade, as buyers rush to complete before the stamp duty holiday ends in March. Read more.
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DECEMBER
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Stamp duty holiday ‘stampede’ drives soaring UK mortgage market:
A
“mad stampede” to buy houses before the stamp duty holiday
ends drove UK mortgage approvals in October to the highest level since 2007, defying surging unemployment and an economic downturn.
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Read more.
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Average UK property values expected to increase by 2% in 2021:
P
rovided that the stamp-dutyholiday is not extended and
some degree of normality follows the rollout of a UK wide vaccine next year, average UK house prices should expect a marginal uplift of around 2% in 2021.
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Read more.
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Construction Updates 26
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Redditch Residences
Our Redditch Residences development is still on hold and should be back to full capacity as restrictions naturally loosen.
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Wolverhampton Residences
Situated on the fringe of
In addition, the plasterboard
connection with the domestic hot
This is situated on the side
Wolverhampton City Centre,
sheets have now been fitted
and cold water supplies.
elevation and this along with
our Wolverhampton Residences
to one side of the metal stud
development sees continued
work, which will allow the metal
At the same time electricians
installation of the new windows
progress, albeit with a reduced
ceiling grid to be formed in each
have been working on their 1st
which have now been ordered and
team on site.
apartment and we’re also pleased
fix stage and such works have
ready for installation
to report that the metalwork
successfully completed on the
the coming weeks.
Working from the top down,
which forms the internal walls
apartments across the top floor
the top 3 floors have now had
for the kitchen/dining rooms,
now, before they move down to
The reduced team of operatives
the lightweight metal studding
bedrooms and bathrooms, have all
the next level.
on site will continue through
installed to prepare for the
been built with plasterboard to
partitions of apartments as per
one side.
the project plans. Operatives are
the scaffolding will support the
the December month and we’re To the exterior of the building,
advised that like other schemes,
scaffolding has been erected
capacity will be increased from
currently working on the second
A team of plumbers were recently
around the perimeter and also
the new year with further numbers
floor forming the partitions to
placed back onsite and they have
incorporates the hoist to assist
being allowed back to accelerate
these units.
now carried out the 1st fix to
with loading materials in and
the progress thereafter.
all units on the top 2 floors in
waste out of the development.
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Preston Central Apartments
In Preston, our city centre
team of dry liners carrying
development consisting of
out the initial partitioning.
70 brand new apartments has
Scaffolding has recently been
seen continued progress in
erected on 2 rear elevations
recent months.
of the building, along with the hoist now in position to
COVID-19 restrictions have
facilitate loading materials up
meant a reduced team of 10
to the upper floors.
operatives have been working on site and at the turn of
The developer has also
the year, the developer looks
recently introduced a team
forward to introducing an
of plumbers who have started
enhanced team of dry liners,
the 1st fix stage on the top 2
plumbers and electricians,
floors, ensuring drainage and
accelerating the build on
supply is installed into the
the way to its scheduled
buildings water infrastructure.
completion in Q1 2022. Two eagerly awaited new Last month saw the team
show flats will be presented
reach a completely stripped
at the development during
out building, ready for
2021, these two apartments
significant construction to
have now been formed on the
commence and the start of
ground floor and currently
the apartments being formed
undergoing their 1st fix
on the top floor.
mechanically and the electrical
Forming of the 2nd and 3rd
1st fix due in these show flats
floor apartments have now
within the next week.
also commenced, with a
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Regent Plaza
Since the last period, the
now the Principal Contractor, have
installation of the decking and
commenced cleaning down the
edge trims has been completed.
steelwork and preparing beams
All decks shear studs have been
and columns, from Level 1 up, for
welded to top of the beams and
intumescent paint to be applied
concrete poured from Levels 1 to
week commencing 30 November
Level 6 and Level 9.
2020.
Evadx have returned to site and
Excavation has commenced in the
addressed their snagging of the
footprint of Block C for geogrid
steelwork frame, including bolts
reinforcement to be installed
and touching up..
before granular material is laid
Design work for Block C piles is
and compacted to required ground
underway to confirm the proposed
capacity.
piles diameter. Intumescent
Foundation for a sample panel is
paint has been delivered to site
being poured and the steelwork
for painting to commence on 1
support delivered to site.
December 2020.
Samples, for proposed brickslip
Structural framing system, for
system, have been ordered and
the inner leaf of the cavity
are due on site first week of
walls, has been delivered to site
December 2020 for presentation
for installation to begin on 7
and signing off by Salford City
December 2020.
Council Planning Department.
SMD are laying the remaining roof deck, to Phase 2 of the steelwork frame, and completing preparation work to Levels 7 and 8 for the concrete to be poured. Swanside Group Limited, who are
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Natex Block A The Steel frame of the roof is
1st fix M&E installation
now being erected
progressed well to levels 1 and 2 The site continues to work under
The intumescent painting has
social distancing measures which
continued to the upper levels
are working well.
Mast climbers and hoists continue
Block B
to operate feeding the floor plates Structural steelwork continues to Pods have been delivered and
be erected to block B
installed to levels 3 and 7 The decking continues to be The SFS has continued with stud
loaded out and installed up to
work and now installed to level 9
level 6
and 10 The boarding is now installed up
Concrete floors have been poured
to level 8
into the first half of the building, levels 1 - 5
Windows have now been installed up to level 6 and glass has been
J-Safe edge protection is being
installed progressively
progressively installed as the frame progresses
Partitions are now 1st fixed to
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levels 1 and 2 with levels 3 – 4 on
Mastclimber bases have been
going
installed
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Developments Available Q1 38
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Newcastle Central Apartments
•
Price from £145,000
•
Due for completion Q3 2022
•
10% discount off market prices
•
8% gross assured rental yield for
....
10 years •
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3% interest on all deposits
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ocated in the very centre
track record. As with all the
of Newcastle at one of the
developments we propose to
city’s most exciting locations
our clients the property and the
which is currently in the throes
location have been carefully
of considerable regeneration, this
considered and fully vetted by our
prestigious apartment building
team. Originally built as an office
is ideally located for those
development, it is now the subject
working or studying in the city,
of a visionary multi-million-pound
within walking distance of train
conversion scheme that will create
stations, shopping centres, several
152 top-quality apartments.
hospitals and under 1km from both of the city’s universities. This development will easily be one of the finest in the city and is being completed by a developer who has an impressive
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Preston Central Apartments
• From £127,000 • City centre location • 8% gross rental assurance for 10 years • Experienced developer
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• Experienced management company
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reston Central Apartments
is on track to surpass ÂŁ10bn by
is a prestigious residential
our scheduled completion date.
development situated on the
Voted the best place to live and
picturesque Winkley Square
work in 2018 by Good Growth
in the very heart of Preston.
for Cities Index, Preston is
Planning permission was granted
becoming increasingly sought
in May 2020 to convert this
after by professionals, and our
former office space into a luxury
project is directly on Winckley
apartment building and works are
Square, arguably Preston’s most
already underway at the 70 unit
prestigious address and one of the
development which is on track to
most popular postcodes in the UK.
complete in Q1 2022. As a city, Preston boasts some of the highest employment rates in the UK, and the local economy
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Regent Plaza
•
From £175,959
• Location highly in demand • Completion Q4 2022 • 7% gross return guaranteed for the first 2 years
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• Experienced developer • Experienced management company
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L
ocated in Manchester,
The development, which will be
one of the UK’s largest
built in a phased program of 5
economies and the most
unique blocks, is set to change
established investment location
the city’s skyline and will have
outside of London; Regent Plaza
resident benefits such as a 24-
is an impressive residential
hour concierge, podium level
development on the edge of the
gardens along with a residents
city centre.
lounge and gym.
Demand for properties such as
We have a number of incentives
those at Regent Plaza is high;
available to investors at Regent
Manchester’s workforce is
Plaza, please get in touch to find
continuously growing with large
out the latest.
numbers of professionals both from other UK locations and overseas relocating to the city year on year.
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Liv Lodges
T
aking a ‘staycation’ has never
Liv Lodges is a collection of
been more popular and in
holiday investment properties
increasing numbers, investors
in idyllic locations across
are turning to holiday property
Britain which are set to offer
investment due to the potential
investors incredible rental
for impressive rental returns.
returns each year.
The combination of the growing
Prices from £109,990 with
trend for UK residents choosing
8% rental assurance and
to visit other parts of the country
furnished holiday
on their holidays rather than
let tax breaks.
travel abroad and the steady rise in the number of tourists visiting the country each year – now is an ideal time to consider investing in a holiday property. 52
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Sheffield Student
• From £75,000 • City centre location next to Sheffield Hallam University • 7.5% NET rental assurance for 5 years • 24 hour security and reception
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• Impressive onsite facilities including a fully equipped gym, coffee shop, dedicated group studying areas and quiet areas
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I
nvestors now have the
international students choosing to
opportunity to purchase a
study in the UK has increased – they
property within an impressive,
now make up almost 20% of the total
high-end purpose-built student
number of students.
accommodation in Sheffield city centre, in the heart of Sheffield
International students are known to
Hallam University campus.
have a preference for high-quality self-contained accommodation
Part of an impressive broader
seeking security and comfort whilst
ÂŁ220million regeneration project
studying abroad. The UK government
the development aims to offer
has predicted that the number of
facilities which enable a new
international students attending
way of learning, working and
universities in the UK will increase by
researching in Sheffield.
around 20% over the next 5 years.
With over 60,000 students
Not only is the development ideally
in the city, there is a strong
located for Sheffield Hallam
demand for accommodation.
University but the University of
Notably, in Sheffield there
Sheffield, which is a member of the
is a lack of modern purpose-
elite Russell Group and is ranked
built accommodation, there are
13th in the UK out of around 150
currently no luxury options
higher education establishments in the
for students.
country, is within walking distance, or a short bus trip away.
The demand for luxury student accommodation has grown in recent years as the number of
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Wardour Point M
anchester continues
Featuring a total of 183
to be one of the
apartments arranged over 25
most exciting prospects for
floors, there are one, two and
investors though where and
three-bedroom apartments
what you buy in the city will
and several duplex apartments
determine the long term
available to purchase.
success of your purchase. City centre properties are proven
Designed with modern living
to offer the best opportunity
in mind each of the luxury
for capital growth, rental
apartments has been carefully
price growth and have the
arranged with spacious, light-
strongest tenant demand.
filled rooms that are ideal for working from home and will be
Located in the very heart
completed with high specification
of Manchester in the city’s
fittings and features to appeal to
emerging creative quarter,
professional tenants.
between the city centre and Media City, this stunning
The building also boasts many on-
residential development
site facilities including an on-site
offers residents a place to not
gym, residents lounge, a concierge
only live but to work and play
service and beautifully landscaped
too cementing the appeal to
gardens. Creating community
tenants by creating a place
spaces for all the residents to
they can call home.
enjoy the gardens will include
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communal growing beds for residents to grow their own produce and recreational spaces for playing including table tennis and table football. Positioned on Regent Road, the development is ideally located near to the city centre whilst also offering easy access to Media City and Salford. Many retail and dining outlets are within walking distance, the University of Salford is around 10 minutes’ walk away and Piccadilly Station, which is to be the Manchester terminal for HS2, is 1.9 miles from the property. Prices from £140,000 with a projected 6% rental yield. Incentives available including up to £20,000 stamp duty contribution.
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2020 Team Review
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Review of 2020 F
ollowing the decisive election result in mid December 2019,
the beginning of 2020 started well with the markets booming, the economy in a strong position and a large amount of inward investment - dubbed the ‘Boris Bounce’.
The pandemic knocked the wind out of our sails, not helped by the media’s scaremongering quoting unfounded figures with no evidence to support their claims that unemployment would skyrocket, property prices crash and the UK economy, in general, would tank.
Now looking back at the year and the end net position it’s confirmed that prices haven’t dropped an in fact have risen throughout the year by 5.4% according to Land Registry. Things have changed, the economic 64
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conditions have shifted but overall
Oliver Mohsen-Taheri, Senior
the UK remains to be in good
Investment Consultant at TD,
shape, it continues to represent a
believes the undersupply gives
safe haven for investors.
investors an opportunity; “when you’ve got a supply and demand imbalance, it can force prices
One element that has been
upwards, and that’s what we’re
unavoidably impacted is
seeing and that’s what I believe
construction. Due to lockdown
we will continue to see over the
many sites were closed and
next three or four years.”
the supply of materials was interrupted - building and development has been disrupted and delayed meaning the UK will not achieve or be near to its target for properties built within the year.
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What’s ahead for 2021? L
ooking forward to 2021 there is an overall optimistic
feeling, yes there will be change and continued scaremongering in the press but by keeping a level head and a clear strategy the team at Thirlmere Deacon firmly believe investors can add some excellent properties to their portfolios.
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Location has been key during 2020 and this theme will continue into 2021. Demand has been shifting away from London for some time, this year the number of relocations skyrocketed in a trend that’s set to continue. Large cities away from the capital have seen increased interest but there are other locations that are well worth considering that can offer better value for money and exciting prospects. Senior Portfolio Manager, Nichola Harrison says “Many of my investors have got their Birmingham’s, and Manchester’s, their Liverpool’s, but they haven’t yet explored those commuter cities and those commuter towns that surround those large areas. So going into 2021, what I’ll be working with my investors is on expanding and diversifying their portfolios.” Together with having a diverse portfolio, successful investors will recognise the importance of purchasing property with a longterm view.
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Senior Investment
Though there’s no crystal
Consultant, Owen Moores
ball discerning buyers can
says “If your are looking
confidently make well-
at buying a property, first
informed purchases with the
consider where is this
guidance of an experienced
property going to be in 5-10
investment consultant.
years. Aim to double the
“There’s always going to be
value and triple the rent.”
opportunities.” Oliver says, “ There’s always going to be
In agreement with Owen,
money to be made.”
TD CEO & Founder Stuart Williams says “most mistakes are made in the property
The fact remains that people
market when you’re trying to
will always need a place to
hit a goal over a short-term
live. “So keep looking up,
period. If you’re trying to get
stay positive, stay calm, and
things turned around quickly,
keep looking forward.” Stuart
you’re in the lap of the gods.
concludes.
I’ve said this once or twice before. It’s about looking long-term. Whenever buying property, you should look five, eight, 10 years down the road, at least.”
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Property Feature 74
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Newcastle Central Located in the very centre of Newcastle at one of the city’s most exciting locations which is currently in the throes of considerable regeneration, this prestigious apartment building is ideally located for those working or studying in the city, within walking distance of train stations, shopping centres, several hospitals and under 1km from both of the city’s universities.
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his development will easily be one of the finest in the
city and is being completed by a developer who has an impressive track record. As with all the developments we propose to our clients the property and the location have been carefully considered and fully vetted by our team. Originally built as an office development, it is now the subject of a visionary multi-million-pound
The seven-story building features its own undercroft parking and, as part of the conversion, the exterior will be transformed, fitted with stinking new glazing and entranceways. Similarly, the interior is being stripped out and replaced with beautiful one and two-bedroom residential units all of which are being built to the latest standards for safety, security and energy efficiency.
conversion scheme that will create 152 top-quality apartments. 78
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Key Investment Highlights
Price from ÂŁ139,750 Number of units in the development: 152 Due for completion Q3 2022 10% discount off market prices 8% gross rental yield for 10 years. 3% interest on all deposits New build warranty in place Developed by Empire Property Concepts
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The Finish
General Smooth plastered walls finished with emulsion in soft white shade Smooth plastered ceilings in soft white emulsion Modern groove detail skirting and door frames Stone matt finish to skirting boards and door frames White doors Contemporary chrome and black nickel door handles 82
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Floor Coverings
Electrical and Maintenance
Hallway Quality vinyl
Electrical and Maintenance
floor in wood effect Black nickel light switches Living Area Quality vinyl floor in wood effect
White downlights throughout
Dining Area Quality vinyl
Phone point to living area
floor in wood effect Satellite point to living area Kitchen Area Quality vinyl floor in wood effect
Bathroom to have black wall mounted heated towel rail
Bedroom Quality carpet in stone Bathroom Quality grey floor tile
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Kitchen Quality matt grey kitchen including base units and a selection of eye level cupboards Apartment plan dependant Soft close doors Concealed under wall cabinet lighting illuminating the work surface below Quality complimentary laminate work surface Fan assisted single electric oven 600mm electric hob Integrated tall fridge / freezer Integrated washing / dryer machine Brushed stainless steel extractor hood Black composite sink & gunmetal monobloc tap Feature tiled splashback
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Bathroom Spanish wall & floor tiles Floor standing WC with push button flush Floating hand basin with cabinet surround Fully enclosed shower with glass door Overhead shower with mixer and riser Wall mounted black heated towel rail
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Property Prices According to Zoopla, as of November 2020, Newcastle’s average property price of £207,104 is significantly lower than England’s average of £304,373whilst the upward trajectory of the value change is in line with the national average at around 6%. For investors, the key take aways from these figures is that prices are currently considerably lower than many other investment options in the UK and also that there is now a window of opportunity before prices climb due to the continued growth of the city and increase in demand for housing. 92
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Rental Yields The combination of low property prices and strong rental demand have pushed yields upwards in recent years, in some of Newcastle’s postcodes rental prices have increased by as much as 20% over the last 5 years. Average rental yields in certain postcodes, particularly the central Newcastle areas, are strong for example the average rental yield for NE1 is reported to be 6.3%, the average in NE2 is 7.3% and in NE6 is 7.4%. Looking forward, with the projected job creation adding to an already growing population, combined with low property prices – there’s logic to say these yields could increase.
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Rental Demand When considering a location for
the population is predicted
investment rental demand is a
to grow by at least 7,300
key factor, any sensible investor
by the end of 2022 and the
will focus not only on the current
continued economic growth
demand, and present housing
is expected to attract new
shortfall but also consider where
skilled workers to the city –
rental demand is likely to increase
14,000 new jobs are set to
and why.
be created over the next 10 years, student numbers are
Not only does Newcastle have a
also set to rise. The city’s
strong economic centre, it is also
population growth is set
home to two major universities
to continue to outpace the
that employ around 10,000
planned construction.
between them and also have a total student body of around 45,000. The city of Newcastle has a population of around 300,000 and
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Investment in the heart of the city.
Wardour Point 98
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Thirlmere Deacon London info@thirlmeredeacon.com + 44 (0) 2039507939 Lansdowne House, Berkeley Square, Mayfair, London, W1J 6ER
Thirlmere Deacon Dubai dubai@thirlmeredeacon.com +971 (0) 4 818 7277 Floor 30, Oberoi Business Centre, Business Bay, Dubai, United Arab Emirates