Issuu

Issue number 2, Q2 2020

The Staycation Boom

a note from the ceo

ear investors, I trust you are well, keeping safe and

staying sane. As lockdown rules start to relax a little here in the UK, itâ€™s almost like the population are re-emerging from isolation bit by bit and with that something resembling normality seems on the horizon. With what seems to be distraction after distraction in the news at the moment, Iâ€™m pleased to say that there are real positives coming out of the property market of late and there are some great opportunities out there for those who seek them. Further evidence again that property is really the only mainstream investment asset class that is a real human necessity. Stay safe guys and keep thinking critically. Best regards,

Stuart Williams CEO and Founder, Thirlmere Deacon LLP +44 203 950 7891 stuart@thirlmeredeacon.com

content Q2 Review Q3 Preview

Market Movement Over Q2

15 45

wolverhampton city centre residences

The Staycation Boom Property Feature Construction Updates Developments on Offer Q3

Location Focus Q&A sessions

101

68 108 81 5

Q2 Review Q3 Preview 6

Q2 Review

oronavirus or no Coronavirus I’m

uncertainty, with some

pleased to confirm that our Q2

anticipating market crashes akin

plans were executed without a hitch.

to 2008. But our experts

The TD team spent countless hours

maintained that the factors in

working on investment opportunities

place that caused property values

with clients in what we have dubbed

to drop back then were not

“Satellite Cities and Tertiary Towns”. We

present going into this phase.

have had major success in locations like

There was no bubble and thus

Wolverhampton and Redditch.

there won’t be a heavy fall. All the evidence of late from market

One of the widely felt effects of the

commentators such as Rightmove

current global climate across the

for example, in fact reflect on

property market is construction being

average a 1.9% increase on pre-

slowed on most projects. Where most

lockdown prices. This is thanks to

still only saw a 3-4 week shut down on

what they called the “pent-up

site due to social distancing rules etc,

home mover momentum”.

the real issue proved to be delivery of materials. I am pleased to say that all of

Another surprise result is the

our projects have weathered the storm

re-emergence of opportunities

and in most cases are only 2 months

available in our big city offerings

behind their original schedule. But

such as Regent Plaza in

because from the start, we build in

Manchester and the highly

contingencies, the anticipated

exciting JQ Rise launch - a

completion dates for most of our

flagship “gateway” development

projects haven’t been affected at all.

in Birmingham’s Jewellery Quarter. Not only this, the UK

There was a lot of speculation from

“Staycation Market” is finally now

those outside of the industry as to prices

becoming the worst kept secret in

and values falling due to the economic

property investment. With the

masses in the UK realising that their overseas holidays this year will most probably be on hold, good quality UK hospitality destinations are seeing bookings soar. We at TD have been somewhat ahead of that curve and in late 2019 started putting the final touches on our Liv Lodges Luxury UK Holiday Home Investment. Weâ€™ve had an incredible response from investors wanting to benefit from these fully booked and high yielding sites. So as we close out on the second quarter of what has already been one of the most monumental years of a generation, we are seeing everyday buyers back in the market as well as the return of the buy to let mortgages from high street banks and confidence growing day by day. Congratulations to those that have been aggressive during this time and expanded their portfolios, taking advantage of cheap lending and a buyersâ€™ market. You will no doubt see the rewards of such self-assurance. 10

Q3 preview

oving in to what is typically

regulations, we are scheduling

a very busy period for us,

some exciting events with a

we are armed with some of the

host of impressive and

most attractive and secure

influential speakers. We will

property investment options in

offer exclusive offers and

the UK. From Big City focus

deals/packages that are only

points (Manchester, Birmingham

available at the events so for

and Liverpool) offering excellent

more information on these,

long term appreciation prospects

please stay tuned.

and strong rental demand to smaller towns and cities

Q3 for me, is going to be

benefitting from industry leading

epic! British summertime, a

long term rental management

juggernaut of a market with

contracts and the ripple effect of

the Bank of England pumping

their famous neighbours. And

in £100bn in to the economy

then the cherry on top is the

and more and more

highly lucrative holiday lodge

opportunities to meet, talk to

market with which, we are

and network with investor on

working with the coolest and most

the same journey as ours –

“on trend” brand on the market.

growing a property portfolio that can weather any

I am also pleased to announce the

economic fluctuation.

official launch of our 30 & Under

I look forward to working

and our Expat Investor Clubs.

with you further.

Depending of lockdown rules and

Market Movement Over Q2 14

April

.... 16

BUYING A NEW-BUILD PROPERTY DURING LOCKDOWN: YOUR QUESTIONS ANSWERED

o some extent, lockdown froze the entire property market,

construction halted on almost all projects nationwide and some completion dates were pushed back. For buyers who wondered if they should seek a price reduction the response from the expert was that they could enquire but not to expect too much as the predictions for price drops were unfounded. Buyers who were in the process of buying a property were advised to check the finer details and expiry

BTL LANDLORDS URGED TO TAKE ADVANTAGE OF ‘BARGAINS’ AND ADD TO PORTFOLIOS

specialist buy-to-let mortgage broker actively

encouraged landlords to purchase

date of their mortgage offer, to

further buy-to-let properties in

ensure that any delays wouldn’t

the current climate claiming that

cause their offer to elapse.

there could be potential to snag a bargain before price growth returns to the upward trajectory it was on prior to the pandemic.

Source: telegraph 18

Source: landlordtoday 19

REVEALED â€“ CHINESE INTEREST IN UK PROPERTY SOARS DESPITE COVID-19

WILL HOUSE PRICES REMAIN STABLE DESPITE PROPERTY MARKET LOCKDOWN?

esearch revealed that Chinese high-net worth individuals

are putting around 12.5% of their

nalysis from Zoopla and Hometrack suggested that

the pause button had been pushed

wealth into overseas assets and

on around 370,000 property

there was a clear spike in interest

transactions as the property

regarding UK real estate â€“ a weak

market was shut down

pound supporting increased

temporarily.

demand. The consensus from professionals According to reports Chinese

is that the recovery of the market

millionaires have also been being

will be swift once the market is

granted Tier 1 Home Office

allowed to resume activity.

residency visas in record numbers.

Source: propertyinvestortoday

Source: forbes

WHERE HAVE BEEN THE WORST-HIT AREAS OF THE PROPERTY MARKET FREEZE SO FAR?

ata released towards the end of April highlighted the

areas where the property market had been the hardest hit based on the reduction of new properties coming onto the market. Amongst the worst hit areas were Woking in Surrey, Hillingdon and Bromley in London and Ely in Cambridgeshire.

Source: propertyreporter

CORONAVIRUS OUTBREAK WILL HALT 520,000 UK HOUSE SALES IN 2020

he Guardian highlighted research conducted by estate

agency Knight Frank that

LENDERS KICK-START MORTGAGE DEALS

fter most lenders stopped processing new mortgage

applications at the beginning of the lockdown, towards the end of April many began reopening their doors. The BBC reported that lenders began to adapt to operating under lockdown, some even asked valuers to conduct drive-by valuations to enable applications to go through.

predicted there would be a 38% drop in the number of house sales and that the temporary freeze on the housing market would result in 520,000 house sales being abandoned. The article went on to include figures from property portal Rightmove which showed that sellers were not withdrawing their properties from the market and agencies were moving to online viewings where it was not possible to view in person.

Source: bbc Source: theguardian 22

LATEST FIGURES SHOW SURGE IN RENTAL DEMAND

HIGH NET WORTH INDIVIDUALS INCREASING LIQUIDITY FOR PROPERTY INVESTMENT

igures revealed that the demand for rental

properties across the UK significantly bounced back

n mid-April, there were signs that high net worth

from the beginning of April.

individuals were maximising

Whilst the impact of

their liquidity viewing the

coronavirus was less

climate as a â€œonce in a

pronounced in lettings when

generationâ€? opportunity to

compared to sales, there was

potentially cherry pick

a reduction in activity in

depressed assets.

March. Whilst the traditional The lettings market, by

mortgage market struggled

nature, tends to be more

there were no such struggles

dynamic with properties

in the refinancing and

moving on and off the letting

remortgaging sectors which

market faster. The research

certain individuals were

showed that the growth in

taking advantage of in order

demand had been seen across

to be ready to invest should

all regions and price bands.

the right opportunity arise.

Source: propertyreporter

Source: propertyforum

UK HOUSING MARKET COULD BOUNCE BACK IN Q4 2020

A HIGH NET WORTH INDIVIDUALS INCREASING LIQUIDITY FOR PROPERTY INVESTMENT

s it was established that

According to selling agent Knight Frank

activity across the UK

the number of transactions would

property market was set to

significantly plummet but prices are

drastically fall over the summer

expected to hold relatively steady.

due to the Covid-19 pandemic, industry professionals cited that any fall would be short lived and expect a bounce back by the end of the year.

n mid-April, there were signs that high net worth

2020 saw an incredible start for

individuals were maximising

the UK property market and the

their liquidity viewing the

wider economy and it is

climate as a “once in a

expected to return.

generation” opportunity to potentially cherry pick depressed assets. Whilst the traditional mortgage market struggled there were no such struggles in the refinancing and remortgaging sectors which certain individuals were taking advantage of in order to be ready to invest should the right opportunity arise.

Source: theguardian

CORONAVIRUS: THE BROADER IMPACT – PROPERTY

rivate bank Coutts conducted research and analysed the UK

property market to consider the impact

Source: landlordtoday

UK HOUSE SALES WILL COLLAPSE IN 2020 AS MARKET GOES INTO DEEP FREEZE, SAYS STUDY

of the coronavirus. Their findings highlighted that cheap borrowing and low interest rates meant many investors looking for income might turn to residential property despite the recent changes to taxation. With the financial markets having shown volatility

major analysis of the

in 2020 Coutts believe investors will

coronavirus and its impact

take comfort in the relative stability

on the UK property market

of house prices.

predicts that house prices will dip by only 3% in 2020 and then Source: propertyforum 26

rebound in 2021.

Source: theguardian 27

may

.... 28

VIRGIN AND CLYDESDALE TO RELAUNCH PRODUCTS NEXT WEEK

s mortgage lenders returned to the market

some of the larger names began to offer very competitive products including residential mortgages at up to 90% LTV and buy-to-lets to 80% LTV. Many lenders also announced that limits on loan sizes would be removed, as lenders once again offered large loans, shared ownership and new build specific products.

MORTGAGE RATES FALL TO NEW RECORD LOWS DURING COVID-19 PANDEMIC

t the beginning of May, it

There was, however, an indication that

was reported that mortgage

change was on the way as lenders were

rates had fallen to record lows

beginning to relaunch products and some

and the number of products

were easing the LTV caps they had put

available had halved when

in place early in the crisis.

compared with those on offer at the beginning of March.

Source: propertywire 30

Source: financialreporter 31

MORE FLEXIBLE WORKING HOURS ANNOUNCED FOR CONSTRUCTION SITES

n mid-May housing secretary Robert Jenrick announced that construction could now

continue until 9 pm Monday-Saturday to allow for a safer working environment and to â€˜keep Britain buildingâ€™. The housing secretary added that he would do everything he could to support the millions of people employed in the construction and housing industries to help the sector bounce back whilst ensuring the safety and wellbeing of workers.

Source: metro

HOW WILL CORONAVIRUS AFFECT HOUSE PRICES?

s buyers and sellers tentatively returned to the property market across the UK

experts believed prices could fall marginally and that transaction numbers would be considerably lower. They highlighted that Zoopla predicted 41% of home movers were going to put their plans on ice for the rest of the year but that it was a good time to purchase with a long term view as interest rates are low and it would be likely to purchase with a marginal discount.

Source: which 32

HOW WILL CORONAVIRUS AFFECT HOUSE PRICES – AND SHOULD I HOLD OFF BUYING A PROPERTY?

HOUSE PRICE GROWTH ROSE TO 3.7% IN APRIL

s the housing market across England reopened analysts

forecasted varying levels of price

ationwide’s chief economist, said: “In the opening

months of 2020 before the

adjustment and The Telegraph

pandemic struck the UK, the

newspaper gave their opinions on

housing market had been steadily

the market climate and what

gathering momentum” and that

buyers should do.

this was driving both activity and prices upwards.

The general consensus was that with low-interest rates taking a

Whilst Nationwide cited that

mortgage now could be

there would be a short-lived halt

advantageous and that for the

in activity and perhaps a dip in

right price there might be the

prices but they expect the pent up

opportunity to buy and potentially

demand to take the market back

with a discount.

to the levels seen at the beginning of the year.

Source: telegraph

Source: propertywire

june

.... 36

RENTAL MARKET SEES â€œREMARKABLEâ€? BOUNCE BACK IN ACTIVITY AFTER LOCKDOWN LIFTED

THE WEST MIDLANDS TIPPED TO SEE TRANSPORT INSPIRED HOUSE PRICE BOOST

nalysis of data found that the pent-up demand resulted in a

111% rise in new tenancy

esearch has tipped the West Midlands for a potential

uplift in property prices due to

applications once the lockdown

the upgrades to transport

restrictions were lifted.

networks across the region.

The average rental price has

There are plans for extensions to

remained steady throughout

the current Metro routes and in

lockdown and in the weeks since

many cases work has already

activity resumed. Slight increases

begun. Previous research from

in average rents were recorded in

Nationwide Building Society

the Midlands and North East

found that prices of properties

regions, the North West remained

within 750 metres of a transport

unchanged whereas in London and

station are 6% higher on average

the South East average rents were

compared to those at a further

recorded to have dropped by as

distance, supporting the

much as 4%.

indications for strong capital growth.

Source: propertyreporter

PROPERTY SALES RECOVER TO PRE-LOCKDOWN LEVELS ACROSS ENGLAND, SAYS ZOOPLA

t the beginning of June property portal Zoopla reported that

property sales had rebounded to the same levels they were at prior to lockdown, though activity in London lagged behind the rest of the country. The pent-up demand also meant firmer prices, with average asking prices 6% higher than in the same week in June last year.

Source: theguardian

JUNE LETTINGS ACTIVITY MATCHING 2019 LEVELS

ecent research has found that the first two weeks of June saw new

and completed letting applications surge above the levels seen in June 2019 â€“ the busiest day recorded was 10th June where activity reached 124% of that recorded on the same day in the previous year. The demand for rental properties has widely been reported to have steadily gained pace since the restrictions on moving home lifted on 13th May.

Source: propertywire 40

Feature Report 42

trend that was already on the rise, Brits have increasingly been

choosing to take a staycation over travelling abroad in recent years. Brexit uncertainty heightened interest in staying in the UK for a holiday as people pondered the difficulties of travelling and Covid-19 further fueled the interest from holidaymakers seeking options closer to home. Health secretary Matt Hancock recently said that the possibility of a relaxed holiday abroad this year is unlikely. According to the national tourism agency, Visit Britain, 80% of the UKâ€™s tourism activity is made up of domestic tourists who spend around ÂŁ72 billion each year. Visit Britain have also found that there has been a steady increase in the number of short breaks being taken each year across the UK. All the indications point to demand for holiday homes in Britain continuing on an upward trajectory as holidaymakers choose a staycation over travel abroad for a number of reasons.

TRAVELLING ABROAD NOW LESS APPEALING

ast year the BBC ran a series of

There is also the issue of getting

short films focusing on the UK

to your holiday destination;

holiday industry, whilst there were then

travelling by air is already a long

uncertainties about Brexit and it was

process at the airport and one

unknown if people would choose to

that is set to become even longer

travel abroad, the pandemic has made a

with further checks and social

staycation all the more appealing and all

distancing measures in place.

news outlets expect to see Brits choosing to travel domestically.

Staying in the UK allows for travel by car which evades the long

A weaker pound means that everything

airport process, removes the need

is more expensive for British

for making transfer plans and

holidaymakers when they travel abroad

avoids the possibility of

and the exchange rate hasnâ€™t been

cancellations or delays. By car,

particularly kind in recent years.

holidaymakers can also take their own bikes and have control over

With the dynamics unlikely to

their departure and arrival times.

dramatically shift in the immediate future, the appeal of staying in the UK and not having to constantly search for the best rates when exchanging money for a holiday is only likely to increase. 46

AWAY FROM THE CROWDS

ncreasingly there is a demand for a

This is leading to a rise in popularity

holiday property to not only give

of sometimes lesser-known holiday

visitors a change of scenery from

destinations and those off the beaten

their home but also to allow for

track, whilst the traditional holiday

seclusion, a break away from the

locations remain to be beautiful places

crowds.

to visit, visitors are increasingly choosing to stay in furnished holiday

The Telegraph recently reported that

lets over, for example, a hotel.

Britainâ€™s holiday homes have seen an unprecedented rise in customers and

Reporting on staycations in 2020 and

in particular interest from those

beyond, The Guardian newspaper has

seeking off-grid locations.

found that industry experts believe holidaymakers will search for places to

Busier, condensed holiday settings

stay beyond the usual hotspots,

are losing their shine as

seeking areas that offer tranquility,

holidaymakers look to enjoy

scenic beauty and isolation.

themselves without being in overcrowded settings.

WHY BUY A UK HOLIDAY PROPERTY?

WHAT TYPE OF HOLIDAY PROPERTY?

t is clear to see that demand for staycations is on the rise, presenting

a real opportunity for investors.

tâ€™s not wise to simply buy a property in a holiday hotspot and

hope for the best; as with any property investment where and what

Investors have long chosen UK property

you buy will dictate its success.

over other asset classes as it has proven to be resilient in uncertain

A luxury, bespoke lodge type property

political and economic climates, has

that has been specifically designed to

had a steady upward trajectory in

meet holidaymakers expectations and

capital growth over time and offers

to make the most of its surroundings

strong rental yields.

can be a sensible choice.

Put off by stringent new tax rules that

With many investors being busy

have been phased in over the past few

individuals, such an investment might

years, some landlords are now choosing

also appeal as certain offerings can

to purchase holiday investment

be entirely hands-off, with an

properties over traditional buy-to-lets

established holiday management

and increasingly, mortgage lenders are

company overseeing the letting and

offering holiday let specific mortgages.

upkeep of the property and site.

Read more about Liv Lodges on page 59.

TAX BENEFITS

n the UK, properties that qualify as

means you can make tax-advantaged

furnished holiday lets are treated

pension contributions.

as businesses and receive favourable tax breaks and certain allowances.

To be categorised as a furnished holiday let, a property must be

So, what are the advantages of a

available to let for a minimum of 210

furnished holiday let?

days per annum and will be subject to Business Rate property tax, in most

You can claim capital allowances on

cases you can claim Small Business

furnished holiday lets which isn’t

Rate Relief which can be up to 100%,

possible for long-term rental

therefore meaning you do not have to

properties. Certain costs can be

pay council tax on the property.

deducted from your pre-tax profits. When you come to sell the property If you share ownership of the

you are able to claim certain Capital

furnished holiday let, you are able to

Gains Tax reliefs which are usually

split the income, it can be flexibly

not available to long-term rental

distributed between, for example,

properties such as Entrepreneurs

husband and wife, you can portion

Relief, Business Asset Rollover Relief

the profit however you would like for

and Gift Hold-over Relief.

tax purposes. An accountant will be able to provide The income that is generated is classed as ‘relevant earnings’ which

specialist advice according to each individual’s unique tax position.

SOURCES

‘Health secretary Matt

‘Last year the BBC ran a series of short films’

Hancock recently said that

- https://www.bbc.co.uk/programmes/m000b98j

the possibility of a relaxed holiday abroad this year is

‘The Telegraph recently reported that Britain’s

unlikely.’ Sources: https://

holiday homes have seen an unprecedented rise

www.theguardian.com/

in customers and in particular interest from

money/2020/may/24/

those seeking off-grid locations.’ Source:

planning-a-great-escape-this-

https://www.telegraph.co.uk/news/2020/05/29/

year-follow-our-staycation-

citydwellers-book-holiday-homes-whole-

guide

summer-return-office-looks/?fbclid=IwAR09B4 t1WITTwTQYw-mHAON2b-cnprkYDUijcGBosZ

*Matt Hancock also

M26trpi8ETSJPk

ith fewer holidaymakers predicted

referenced in BBC: https://

to travel overseas from the UK over

www.bbc.co.uk/news/

‘Reporting on staycations in 2020 and beyond,

business-52632976

The Guardian newspaper has found that

the next few years the demand for holiday properties is set to soar.

industry experts believe holidaymakers will ‘According to the national

search for places to stay beyond the usual

There are a variety of holiday property

tourism agency, Visit Britain,

hotspots, seeking areas that offer tranquillity,

types to consider and different locations

80% of the UK’s tourism

scenic beauty and isolation.’ Source: https://

around the UK that attract holidaymakers;

activity is made up of

www.theguardian.com/money/2020/may/24/

some holiday hotspots have peaked and

domestic tourists who spend

planning-a-great-escape-this-year-follow-our-

offer minimal potential for capital growth.

around £72 billion each year.’

staycation-guide

https://www. Finding a holiday location that is ripe for

propertyinvestortoday.co.uk/

This Barclay’s guide also an interesting read on

investment; offering price growth potential

breaking-news/2020/1/is-

the subject: https://www.barclayscorporate.

and strong yields is a fine balance - find

2020-the-year-to-buy-a-

com/content/dam/barclayscorporate-com/

the right holiday investment property and

furnished-holiday-let

documents/insights/industry-expertise/HL-

the potential is exceptional. 54

report-staycation.pdf 55

Property Feature 56

Liv Lodges : Bridlington

he UK holiday and leisure sector has increasingly been capturing the attention

of investors as the demand for holiday properties, in particular, rises exponentially. Demand for UK holiday homes has soared in recent years and with the predictions indicating this is only set to rise further as Brits choose staycations over travelling abroad; for investors now is the time to learn more about the UKâ€™s leisure industry and the excellent investment opportunities on offer.

.... 59

Liv Lodge Retreats s

uited for holidays in all seasons and

accustomed to taking luxury trips

designed with the customer in mind,

overseas who are now opting to

the next generation holiday properties

stay in the UK – features such as

presented by Liv Lodges have been

high speed WiFi, high tech

created to specifically cater to the

security and safety measures and

luxury holiday rental market.

a 24 hour concierge all give Liv Lodge Retreats greater appeal

The lodge exteriors and stylish interiors

when compared to other similar

are complemented by features such as

holiday options.

hot tubs and each dwelling is furnished to a high standard and ready to let.

Impressive on-site facilities include a cinema room, games

Today’s travellers have higher

room, gym and cardio suite and

expectations, especially those who are

children’s outdoor play area.

STRONG INVESTMENT PROSPECTS

he UK holiday park industry

Bridlington is a pretty,

has offered stable market

quintessentially British seaside

conditions and high yields for

town on the East Yorkshire coast.

many years; institutional funds

Boasting award winning clean

and private offices have been

beaches, a rich and diverse history

taking advantage of the

and thriving natural habitat;

opportunities quietly for some

Bridlington is a wonderful place

time as the demand has steadily

to explore on holiday.

grown for such accommodation. For those who have a keen Along with the high yields

interest in history, Bridlington has

available, there are considerable

pre-Roman historic harbour and

tax breaks available for Furnished

characterful old town, home to an

Holiday Lets that can allow an

Augustinian Priory and the area is

investor to access tax-free rental

a mecca for wildlife lovers with

returns for many years.

various nature reserves nearby.

LOCATION

Bridlington golf course is widely regarded as one of the best in

Yorkshire and the historic market hilst there are several

town of Beverley voted one of the

well-known holiday

best places to live in the UK and

hotspots across the country these

one of Yorkshireâ€™s best kept

do not always present the best

secrets, is just 17 miles away.

opportunity in terms of capital

appreciation. These locations are

The Liv Lodges Retreat is located

also beginning to look less

just inland, a short drive from the

appealing as holidaymakers are

beach, allowing guests easy access

increasingly seeking places to stay

to the town whilst also offering a

away from large crowds.

space away from the attractions.

Why choose Liv Lodges?

Why UK holiday property?

iv Lodges offers secure, high yielding, hands-free investment assets to investors

seeking opportunity in the UK holiday accommodation sector.

he sustained surge in the demand for staycations in being driven by several key

factors; from the weak pound to the overall cost comparison between a staycation and a holiday abroad â€“ for families, a staycation is

The team behind Liv Lodges have unparalleled

often less than half the cost of

expertise across all areas from the design and

travelling overseas.

layout of the lodges, the planning, manufacturing and construction of the

The convenience of taking a UK holiday,

properties and the management and letting

especially for those travelling with family or

once completed; investors can have peace of

even pets, is hugely appealing and increasingly

There are a considerable

mind that they are in good hands.

Britons are realising the UK is home to many

number of reasons why a

Areas of Outstanding Natural Beauty and want

luxury holiday lodge

to explore the country.

investment property, in

The modern holiday lodges can be secured with a rental yield assurance in place for up to 10

Understanding the driving forces behind the

particular Liv Lodges in

years removing considerable stress that is

rise in the popularity of the staycation and

Bridlington, presents the

usually attached to the success of a holiday

what guests are looking for in accommodation

perfect opportunity for

investment property in securing bookings.

is incredibly important for investment success.

investors in 2020. 65

Key Investment Highlights • Prices from £109,990 • 8% NET annual return assured for 10 years (RPI linked) • Guaranteed exit options at Years 5, 7 and 10 • Secured through a 250-year leasehold title registered with Land Registry • No development risk as all lodges are custom-built off-site • All lodges are built to residential standard BS3632, the best you can get! • Current prices 10-15% below recent RICS valuation • Furnished Holiday Lodge tax benefits available • Robust financial model in place to offer sustainable returns • Mortgages available for UK investors • Rental reserve fund to cover any unlikely rental payment shortfalls

CONSTRUCTION UPDATES 68

redditch residences

Wolverhamp- b ton City Centre Residences, Tivoli House, and Globeworks

y the end of April, the building had been fully

stripped out and works were progressing in connection with forming all the flats on level 1 – 3. They had not, however, been

ay saw a freeze in construction across all developments for the whole month,

it will come as little surprise that June will present little any activity to report back on. However, on a positive note, feedback from the construction teams on each development is that June will most certainly bring the reintroduction of each workforce to pick up where they left off back in April. We are in close communication with the developers and site contractors for each development and it is anticipated that under strict health and safety guidelines, construction teams will be operational once again within the next 2-3 weeks. There is a wealth of challenges in bringing each workforce back onto site safely, not only under government guidelines but also under the usual building regulations. The developers are however, keen to commence work once again as soon as possible. We’re sure you will agree that this is most welcome news for all concerned and we can start to look forward to getting back to our normal routine.

formed on the Ground Floor due to the installation of new drainage which will commence as soon as the site reopens. 1st fix M&E was progressing on floors 1 – 3 and the core services had also been installed on these levels. Before the site shut down, progress was made in connection with the mains electricity and water supplies to the communal areas on floors 1-3. In addition, the ceiling grid to some flats had commenced. Since the beginning of the Covid-19 Lockdown, a freeze in construction was imposed across

all developments for the whole month of May. So it will come as little surprise that this month’s report presents little progress to report back on. However, on a positive note, feedback from the construction teams on each development is that June will most certainly bring the re-introduction of each workforce to pick up where they left off back in April.

Regent Plaza Manchester

PLANNED WORKS

he remaining piles, along the spine of the building, will be exposed, cut down and

tested, to enable preparation of pile caps excavation. The fabricated reinforcement cages will be placed in the excavations along grid line H, for ground beams and the pile caps, ready for concrete to be poured. All holding down bolts will be cast in, as part of the foundations, ready to receive the steel columns. The erection of the steelwork is due to commence on 10 August 2020. Surface water drainage work will commence by digging trenches, for pipes, and excavations

elix Civils Ltd are currently off-site, with a scheduled return date of 15 June 2020,

CURRENT STATUS ON SITE

for manholes. As the dry weather has continued, the stockpile of excavated material, currently sat in the footprint of Block A, will

to continue with the remaining drainage work

be gradually removed off site to allow the

and foundations.

installation of the attenuation tank.

During their two weeks return to site, Helix Civils Ltd installed a total of 5 no. manholes, plus the connecting pipes. The majority of the spurs, into Block B for ground floor pop-ups, were laid and backfilled. Further concrete cube results have been provided showing strengths exceeding those required by the design. Most of the piles, along the spine of the building, were cut down, cleaned and tested, with concrete blinding placed at the bottom of the pile caps. 72

Sherwood Square Nottingham

Baltic Place Liverpool a

s many developers are slowly being able to get teams back to work it comes as no

surprise that Baltic Place has also been delayed because of the effects of coronavirus.

ll apartments are now completed Final testing and commissioning of all

The team at ICCG are currently getting back

the apartments is being undertaken

on site on each of their projects, with Baltic

External drainage works complete and paving

Place to be set to resume construction

works have commenced

in 8-10 weeks.

Estimated Completion: June 2020

One BHM/ JQ Rise p

lanning permission has been granted for

The Soul t

he team in Zanzibar have been able to keep construction progressing as best

they can throughout the pandemic.

the 24 storey development. The delay is

this being granted was due to the council not

April saw compacting and skimming of

happy with the size of the development and

platforms N2 & N3 completed, excavation of

they wanted something with more grandeur.

trenches for N2 completed and compacting N1,

Our current investors in the One BHM

construction yard and area for aggregates such

development will also notice a name change

as sand and crushed stones completed.

form One BHM to the new JQ Rise. 74

Natex Student Residences

May has been just as good with the main contractor Volkshouse has moved on site, platforms for buildings N2 & N3 with sewage completed, the excavation of gardens between boundaries of phase 1A & 2A completed and the setting up of construction yard ongoing. Next steps throughout June completion of the construction yard construction of substructure

BLOCK A

of building N2 (setting out, laying pipes & ducts in the foundation).

oundations are complete. The steelwork to phase one of block A, up

Fumba Town

to the 12th Floor, has now recommenced and is

The J-Safe edge protection has been

due for completion in the next week. The site has implemented social distancing measures which have enabled the steelwork to recommence, albeit at a slower pace than originally planned.

n the past 3 months, a number of key

progressively installed. The steel floor decking

developments have been achieved. Both

has been progressively loaded out and the

apartment building C9-01 has been completed

decking installation to the first half of block A

and handed over and apartment building C8-01

has commenced. Works are progressing well

has been completed. We now have 20

with the new social distancing

townhouses completed. Mwangani Apartment

measures in place.

plots bush clearing, plot leveled and prepared for foundation works. Moyoni plots bush

BLOCK B

cleared, plot leveled and prepared for foundation works. Horizon & Bustani plots

have seen the value of

prepared to start works in July 2020. Seafront

investing in a sustainable and

Units plots G10-01,2 and 3, G11-1,2 and 3

safe town and so we have had

have gone up to superstructure. Due to

a high demand of rental

Corona, lots of people living here on the island

inquiries and new residents.

he final foundation is now ready to be poured, this had been planned during the

lockdown, however, due to the restrictions, the team were unable to source the required

concrete volumes needed for the large pour. This is now available and will be poured w/c 8th June. Block B steelwork commenced as planned on the 16th March 2020, however, this paused just over a week later with the government restrictions. We are pleased to say work has now recommenced on both Block A and block B steelwork. Decking is on-site and will be loaded out as the frame is erected. J-safe edge protection is on-site and will be installed with the erection of the frame.

PLANNED: • Completion of the frame to (levels 1 – 12) on block A • Continue Installation of decking to Block A (levels 1 – 12) • Commencement of the concrete floors to block A • Block B continuation of the steelwork (this as approximately 8.5 further weeks to go). • Completion of the last of the foundations to block B • Commence the drainage to block A • Installation of block B staircases • Handrail edge protection is to be installed to the pre-cast staircases 78

Developments

on offer in Q3

wolverhampton city centre residences

Q3 Investment Opportunities

... 82

he Wolverhampton city centre residences have easily

been one of our all-time most popular investment opportunities; investors have wisely seen the potential that a quality development in a prime, central

regent plaza

ocated in Manchester, one of the UK’s largest economies

and the most established

location offers.

investment location outside of

Infrastructure is a key factor when

impressive residential

predicting the future of an investment location; Wolverhampton’s transport connections to neighbouring Birmingham by rail, a journey which takes around 15 minutes, already make it a natural location for investors to consider. The arrival of high-speed rail will only boost this part of the midlands

London; Regent Plaza is an development on the edge of the city centre. Demand for properties such as those at Regent Plaza is high; Manchester’s workforce is continuously growing with large numbers of professionals both from other UK locations and overseas relocating to the city

further.

year on year.

The plans for further regeneration

Phase 1 (completion within 18

and development are widespread across the city; Wolverhampton is a city which has room to grow and

months) is 90% sold out. Prices from £159,950 and an a

all the right foundations in place to support impressive capital gains for those who invest at this crucial tipping point. Prices from £115,000 and an 8% rental yield assured for 10 years. 84

Prices from £159,950 with an assured 2 year 7% rental return.

Construction Team Update

Baltic Place b

The Soul

altic Place is located within

attracted by the affordable yet high

Liverpool’s Baltic Triangle, the

quality of life available.

city’s Creative and Digital quarter and easily one of the most exciting, fast-

Designed to provide residents with

growing parts of Liverpool.

affordable yet luxurious homes, Baltic

Liverpool is seeing its economy grow

ocated on Zanzibar’s exotic and beautiful East Coast,

known for its white sandy

Place offers spacious urban living

beaches, crystal clear sea and

finished to a high specification.

jungle backdrop, The Soul is a fully serviced residential-leisure

significantly supported by new businesses calling the city home and

Prices from £112,500 and 7% NET

facility; a destination for modern

the increasing number of professionals

rental return assured for 12 months.

globetrotters seeking a luxury place to stay in a tropical,

choosing to live there,

unspoilt setting.

Fumba Town s

pread over 150 acres of coastal savannah,

Designed to make the very most of the natural surrounds, The Soul is being developed by an experienced team who have an excellent track record specifically Just 15 minutes’ drive from the busy centre of Stone Town and Zanzibar International Airport

in creating luxury holiday resorts in Zanzibar and Tanzania.

including 1.5kms of Indian

and within a short distance of Dar es Salaam

Ocean Coastline, the Fumba

and the Tanzania mainland which can be

With a growing tourism sector and

Town development in

reached by either plane or ferry.

demand for holiday rooms and hotels increasing year on year,

Zanzibar offers residents impressive, modern homes set

Timing of investment is crucial to monetary

Zanzibar presents investors with

within a sustainable,

success over time; investors strive to find these

an exciting prospect.

community-driven setting

locations and secure their assets at the ideal

surrounded by

moment; Zanzibar currently presents

Prices from $49,000 with between

stunning scenery.

one such opportunity.

8%-20% yield return.

Liv Lodges t

St Stephen’s House

aking a ‘staycation’ has never been more popular and

in increasing numbers, investors are turning to holiday property investment due to the potential for impressive rental returns. The combination of the growing trend for UK residents choosing to visit other parts of the country on their holidays rather than travel abroad and the steady rise in the number of tourists visiting the country each year – now is an ideal time to consider

he conversion of a previous office

within a well-established green belt

building, St Stephen’s House is

meaning residents have ready

being developed by an experienced

access to the countryside.

investing in a holiday property.

team who have been creating stylish, high-quality accommodation

Redditch train station is only a short

Liv Lodges is a collection of

for over 15 years.

walk from St Stephen’s house and by

holiday investment properties in

rail, Redditch is well connected via the Positioned in a leafy neighbourhood,

West Midlands network with regular

St Stephen’s House is in an upmarket

and direct services into Birmingham

part of the popular town of Redditch.

New Street. The town is also within

each year.

Whilst the development offers all the

easy reach of the M42, M5, M40 and

perks of living in a town centre with

M6 motorways for travel by car.

Prices from £109,990 with 8%

the amenities on the doorstep and one

idyllic locations across Britain which are set to offer investors incredible rental returns

rental assurance and furnished holiday let tax breaks. 88

of the UK’s top shopping centres just a

Price starting under £115,000 with an

short walk away, Redditch is located

8% rental yield assured for 10 years. 89

Location Focus 90

Location focus: Manchester m

anchester has long been considered a prime investment

opportunity, as the economy has grown so too has the population of young professionals and the demand for highquality residences. There can often be a fear of â€˜missing the marketâ€™ amongst investors, especially where a location has seen impressive growth, there might be a worry that an area has peaked and the opportunity has passed. Manchesterâ€™s investment prospects are, however, stronger than ever; the established property market, the continuously growing economy, excellent transport links and a growing young, professional population. These factors are complemented by the continued improvements and development across the city and the planned upgrades to infrastructure.eaks. 92

ECONOMIC POWERHOUSE

anchester has a thriving digital and technology

sector which has been a major driving force for economic growth across the region in recent years. Around 70% of the employment in

pool of knowledge, professional

the city centre is reported to be in

talent and excellent

the knowledge-intensive

global connectivity.

industries making it appealing and accessible to young professionals.

Large companies such as The Co-Operative Group, Kelloggâ€™s,

The universities in Manchester

Adidas have their Global or

have some of the highest graduate

European headquarters in

retention rates meaning students

Manchester. And the BBC have

are choosing to make Manchester

significant parts of their

home once theyâ€™re qualified,

operations in MediaCityUK which

adding to the pool of young

is located on the banks of the

professional talent.

Manchester Ship Canal in Salford and Trafford.

Along with the attraction of having access to a skilled

Along with the larger corporations

workforce of young professionals,

who have a base in Manchester,

operating costs for businesses in

the city also has a thriving start-

Manchester are estimated to be

up scene with high numbers of

around 40% lower than London,

new businesses setting up in the

companies also benefit from a

city year on year.

CONNECTIVITY

anchester is exceptionally well

connected by road, rail and air; it is regarded as the

By rail, Manchester is

North’s only major

currently well connected

international gateway.

with fast trains running into London in around 2 hours.

Logistically Manchester is

This travel time is set to be

exceptionally well placed as a

halved with government

distribution hub for

plans for the construction

companies being centrally

of High Speed 2.

located and having more motorways than any other UK

The city is also served by

city. Every other major UK

the UK’s largest light rail

centre from London to

network, the Metrolink,

Edinburgh can be reached

which operates across the

within 4 hours’ drive from

city connecting residential

Manchester and it is reported

and commercial areas. The

that 60% of UK companies

Metrolink currently has 99

are within a 2 hour drive

stops along 65 miles of

of Manchester.

track; there has been considerable expansion in

Manchester has its own

recent years as the service

international airport, the

has been part of a wider

third-largest in the UK after

strategy used by the city’s

Heathrow and Gatwick,

transport planners and

connecting the city to the

there are proposals to

rest of Europe, the US

expand the network

and Asia.

even further.

PROPERTY PRICES

verage property prices in

With strong rental yields

Manchester have increased

available, should you purchase

by almost 25% in the past 5 years,

wisely, the combination of

in the same period average house

potential for capital appreciation

prices in London have grown by

whilst earning a healthy rental

14%. Historical price growth

income makes Manchester a prime

trends are a useful indication of

target for savvy investors.

the potential for future growth.

plans for improvements to infrastructure and development only encouraging the city’s economy to go from strength to

list for tenants. Regent Plaza is of

lower

higher quality with better facilities • Facilities are excellent – 24-hour concierge and security, high spec gardens and terrace for residents • Prices from £159,950

place

the demand for high-quality rental accommodation.

• Location is equidistant from Manchester City Centre and

Manchester is a well-established

• A similar development located

the city is a considerable amount

• Full deposit protection bond in

of professionals who will push up

for future capital growth.

first 2 years

300m up the road has a waiting

• Experienced construction company

supports an increasing workforce

it also has exceptional potential

• 7% gross return guaranteed for the

gymnasium, private communal

A strong and growing economy

opportunities outside of London,

plenty of public transport)

quality and size developments in

FCA regulated

predictions for capital growth.

averse investors seeking

working 30X harder than sitting in

• Developer is fully funded and

strength, there are healthy

Salford – walking distance (and

investors who want their money

• Price compared to other similar

Manchester’s economy and the

one of the safest choices for risk-

through the build - great for those

the bank.

With the continued growth of

investment location and perhaps

• 3% interest on deposited funds

Our offer in Manchester Regent Plaza: 99

The TD Property Investment Q and A sessions 100

101

If somebody has cash in hand to buy an investment property, why would they still take a mortgage?

Live on Facebook on the Last Thursday each month

verage property prices in

higher income for yourself, scaling

Manchester have increased

your portfolio. Yes, you’re paying

by almost 25% in the past 5 years,

out on mortgages, but the income

in the same period average house

that you generate over and above

prices in London have grown by

the mortgages and over and above

14%. Historical price growth

the cost will be far higher than if

trends are a useful indication of

you just bought one unit with the

the potential for future growth.

cash. And also give you a lot more flexibility as well. So it allows you

First things first, if you’ve got

to then keep two, sell one,

cash in hand to buy an investment

whatever you want to do, re-

property outright, fantastic.

mortgage out of one in five years

Congratulations. You did

time, whatever it is, it gives you a

something right. Secondly, you

lot more flexibility.

should definitely look at taking finance.

Property goes up in value every 10 to 15 years. And with a portfolio,

Let’s say you’ve got £200,000

£200,000, you’re in control of

cash. Use that £200,000 for one

your portfolio, that’s worth

property. It’s going to generate

around £800,000. You hold onto it

you a nice 6% yield, for example.

for 10 years, that would double in value at £1.6million comparing to

However, use that property, use

your £200,000 in 10 years’ time.

that cash to split up and buy three

102

properties with mortgages, you’re

Basically scaling up on the returns

then going to generate a far

as well as the prospective growth.

103

You’re spreading the risk over multiple properties rather than one. You’re keeping your money more agile. Spreading the risk, it just allows

Do you feel there is any big difference between a 999year leasehold and a 250 leasehold versus freehold if buying as an investment?

one basket, if you just lump all that cash, your hard-earned cash into one option. If you’re able to scale it, leverage it as much as possible. That is why people take a loan. That’s why we would advise you to take finance on building your portfolio. And the cost of lending these days is so competitive that it’s in your interest. I mean, before it would have been a deterrent, particularly for international investors, to get

away, years down, a decade goes by and you’re at 89 years, you might then find it difficult to find a new buyer who’s going to be able to finance it. Because, a lot of lenders will say, “Actually we

you to be a lot more agile. You’re literally putting all your eggs in

lease for example, as it ticks

Oliver Mohsen-Taheri:

would say in my experience, in my understanding, absolutely

not. If you’ve got a 250 year leasehold, you don’t really need anything more than that. Unless you’re working on a cure that’s going to let us live a lot longer than we think. I mean it’s not really something we need to worry about. The only difference with freehold and leasehold is when you’re working with a leasehold that’s under around 85 years.

don’t like the look of that.” However, a lot of new build property, a lot of the options that we work on have a much, much higher lease. I think a lot of people, especially investors who come through our Dubai office, only want to buy freehold, and I think par of that is not fully understanding what the benefits are of buying a leasehold property. Obviously, if you’re buying a freehold property, if anything happens to it, any

a mortgage, because the rates

maintenance that needs to take

were horrific, but these days

place, you’re responsible. You’ve

they’re competitive

got to sort it out. The roof leaks, Stuart Williams:

that’s your job. Leasehold was

introduced a number of years ago

eah. That’s when mortgage brokers and mortgage lenders

decide to actually we’re not going to lend on it. Or you might find it harder to get a mortgage. So if you’ve got a mortgage… If you’ve got a property that has a 99-year

104

in the UK and a number of other countries, to essentially protect all the owners in the building. You have a central management company, they’re responsible to take care of everything. The freeholder is also responsible to 105

look after everything as well. And for you as a landlord or you as an owner in a building that’s

Oliver Mohsen-Taheri:

property in, you need to make

sure that there is a tenant

eah. I mean, first of all, 24 years old looking for your

first buy-to-let. Brilliant, I think

demand. I mean, there’s no point buying a nice property if there’s nobody in the area who’s going to

leasehold, you can relax a bit

it’s great. If you think about the