Issue 8, January - 2022
DIVERSIFY YOUR PORTFOLIO: Introducing Dubai
contents CEO Letter
Market Report Q4
Alasdair Walker: Marketing Director Amy Marshall: Chief Writer/Editor Nevena Djuranovic: Art Director Isidora Mladenovic: Brand Strategist
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UK Property 66 Market GETGROUND:
Growing Trends In The UK Property Market
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28 Dubai
SCAN TO DOWNLOAD OUR GUIDE!
Developments in Q1
Investment strategy - 10 Features That Tenants Look For In A Rental Property
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5
T
he final three months of 2021
investors with the likes of Emaar,
have been incredibly exciting
Dubai Properties and Meeras, and
here in the Dubai office; we officially
whilst demand for Dubai investments
launched our Dubai sales arm and have
has been through the roof, the UK
enjoyed a successful first quarter
market has also been popular in this
launching the magnificent Peninsula
region with £6.2m of reservations
development in Business Bay.
made in the final quarter of 2021.
Since October 1st Thirlmere Deacon
2022 will see the expansion of the
Dubai has been involved in over AED
Thirlmere Deacon team in Dubai, with
12m of transactions across both the
a new office and big plans to assist
towers at the exquisite Peninsula that
clients in the expansion of their
has already seen over 80% of the
portfolios both in the UK and here in
development sold out. Further towers
Dubai.
will be released in the coming 12 months and those investors who
Wishing everyone the very best for
secured their apartments in Phase 1
2022.
will already be benefitting from considerable growth as the units were all acquired at around 20-25% under the current market value already.
Oliver Mohsen-Taheri, Head of Dubai Operations
The New Year will see exclusive developments becoming available to
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M
oving into a new year has so
our developmentsites through our
many positives. It not only
offices and on to our clients and the
allows you a natural break to assess
public. Even if this means sending our
things you might like to change, but
own camera teams across the country
also gives those who wish to see it this
more regularly to shot sites, locations
way, a benchmark and target to out-do
and updates, this is something we are
the following year. As a company, there
working on and hope to be reporting in
are definitely some things I’d like to
new and exciting ways in 2022.
change as we enter our 5th calendar year, but there is also so much good to
This time of year offers an opportunity
build on. For example, I truly believe
to thank those that have worked so
that in 2021 we added some incredible
hard for us, with us and alongside us.
talent to our personnel, from which the
We really wouldn’t be where we are
makings of some great leaders in the
today without the investors, the
property investment field are
clients, the call ins, the walk ins, the
emerging. As we grow and build the
developers, builders, mortgage brokers,
team we hope to add more dynamic
solicitors, property managers and of
and ambitious individuals to the fold.
course, the tenants. Thank you all for being part of this incredible sector.
One of the challenges we have faced here at Thirlmere Deacon this year has
Onwards in to 2022…..
been communication, as we grow, we
Stuart Williams,
need to find effective and innovative ways of delivering information from
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CEO, Founder
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Movement MARKET
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HOUSE PRICE FORECAST: FOCUS
3.3% UK HOUSE PRICE GROWTH
3.3% Scotland
4.3% North East England
The rate of house price growth is due
3.8%
North West England
to slow in 2022, but remain positive, ranging from 2% (London) to 4.3% (North West).
3.3%
3.5%
Yorkshire & the Humber
4.0%
Growth will be highest in northern
2.8%
and Midlands regions, where affordability is less constrained, and slowest in London where it is more stretched.
East Midlands
3.5%
A shortage of homes on the market
West Midlands East of England
Wales
and high levels of equity will be key drivers for house price growth in 2022. Cost of living rises and the
London
3.0%
South West England
2.0%
South East England
expectation that mortgage rates and
3.0%
taxes will increase in 2022 are likely to impact affordability, thus limiting house price growth. 12
*2022 HOUSE PRICE FORECASTS Source:Dataloft, Zoopla, Savills
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UK HIGH STREETS ARE
recovering
The past 18 months have been tough
Small/medium sized cities and large
for UK high streets due to Covid-19
towns have recovered the most. Large
restrictions in early 2020 which
cities have recovered the least and
triggered a hollowing-out of city
continue to struggle due to upward
centres.
trend in remote working.
Footfall and spend analysis from the
Thriving places are those with a
Centre or Cities/Locomizer suggests
catchment of high disposable incomes,
that UK cities have begun to recover
large number of workers commuting in
(despite increased online shopping) but
(even if flexibly) and have shifted
at varying degrees.
businesses located in them.
TOP PLACES FOR RECOVERY
By footfall 1. Blackpool
6. Sunderland
2. Southend
7. Wigan
3. Barnsley
8. Preston
4. Burnley
9. Wakefield
5. Plymouth
10. Dundee
By spend 1. Blackpool
6. Cardiff
2. Wakefield
7. Swansea
3. York
8. Middlesbrough
4. Liverpool
9. Plymouth
5. Telford
10. Huddersfield
Source: Dataloft, Centre for Cities, Locomizer
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INCREASE IN UK RENTS:
ANNUAL INCREASE IN UK RENTS
Wales
£734
Scotland
£755
East Midlands
£735
North West
£830
South West
£971
Yorkshire & the Humber
£725
7.7%
Northern Ireland
£705
7.3%
West Midlands
£797
July to September is the busiest quarter of the year for the rental market. In a normal year, 32% of tenancies start in quarter 3. This is likely to be higher in 2021, as students and workers return to cities. It is therefore no surprise that the UK average monthly rent has seen an
Greater London
£1,752
South East
£1,139
East of England
£1,021
annual increase of 7.5% and is higher than pre-pandemic levels.
7.5%
North East
Wales has seen the largest annual
£578
AVG MONTHLY RENT
12.9%
ANNUAL CHANGE
10.5% 8.4% 7.8% 7.6%
6.7% 6.4% 6.1% 5.6% 3.6%
increase in monthly rent, 12.9%, followed by Scotland, 10.5%, and the East Midlands, 8.4%. Rental growth forecasts for the next 12 months are slightly above 3%. Over the next five years, rents are forecast to increase by 4% per annum
AVERAGE MONTHLY RENT IN THE UK
£1,061
across the UK (RICS). 16
Source: Dataloft, HomeLet, Royal Institute of Chartered Surveyors 17
29%
of the students live in the private rental sector
435,430 first time students have a
In the UK, excluding London, students
confirmed place at university in the
in the private rental sector spend an
UK in 2021, this is 5% higher than
average of £508 on their share of rent
results day in 2020.
a month and a total household rent of £1,313.
During university, 29% of students live in the private rental sector.
In London students in the private
Dataloft estimate that 570,000
rental sector spend an average £1,007
students will be living in the private
on their share of rent, and a total
rental sector during the next
household rent of £2,026.
academic year.
STUDENTS IN THE PRIVATE RENTAL SECTOR: FOCUS Source: Dataloft Rental Market Analytics, HESA 18
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BASE RATE OF INTEREST EXPECTED TO RISE SOON The base rate of interest is set to rise in the ‘coming months’ as the
adjustment to the housing market is anticipated in the short term.
Bank of England acts to control the UK economy.
Compared to the Global Financial Crisis in 2008/09, when the base
The Bank voted to keep the base
rate was often in excess of 5%,
rate at its historic low of 0.1% in
the rate by the end of 2022 is
November, but with inflation 3.1%
expected to be a maximum of 1%.
and predicted to rise to as much as 5% in the first half of 2022, a rise
Raising the base rate encourages
is likely.
people to save, not spend,. This should slow the increase in prices
Any rise will impact mortgage
of household goods.
borrowing costs, although with an estimated 80% of borrowers on
Source: Dataloft, Bank of England
fixed rate deals, no significant
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DEMAND STABILISING BUT PRICES SET TO REMAIN FIRM
Buyer demand is stabilising according
volume of newly agreed sales fell back,
to the latest edition of the RICS
a net balance of agents (-15) citing a
Residential Survey.
decline.
At a national level the new buyer
Sales volumes are expected to remain
enquiries indicator posted a net
stready throughout the final quarter of
balance of zero in September, a sign of
2021, a continued shortage of supply
stable demand.
sustaining pressure on prices.
For the third consecutive month the
Source: Dataloft, RICS
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The cost of borrowing remains historically low according to new data released by the Bank of England, the average mortgage rate just
2.29%
MONTHLY TOTAL: This rate has remained unchanged since the start of 2021, with gross mortgage
Average mortgage rate remains historically low
lending in March hitting its highest ever monthly total at
20%
Mortgage approvals remain over
£35.6 billion The Bank of England Monetary
higher than the long term (5
Policy Committee voted
year average), as interest in
unanimously on 5 May to
moving home continues.
maintain rates at 0.1%. The next meeting is 16 June.
7.12% 5.52%
2000 24
2005
3.36% 3.14% 2.33% 2.29% 2010
2015
2020
2021 25
DEVELOPMENTS
Q1 2022
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Dubai
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FROM £232,000
In a city that regularly breaks world records and sets the bar for exquisite buildings and spaces, there is rarely the opportunity to find a first. Creek Beach presents the first-of-its-kind urban beach set in the heart of Dubai Creek Harbour, a private beach for use only by those staying in the development. Creating a unique paradise, Creek Beach boasts 700 metres of pristine white sands and an infinity pool. Dubai is known for offering an exceptional quality of life, Creek Beach surpasses the standards set within other developments, allowing residents to enjoy a beautiful setting, exquisite facilities, and outstanding amenities. Dubai Creek Harbour is well connected with a fully-integrated transport system that enables residents and visitors to get around Dubai with ease, including water taxis directly to Downtown Dubai.
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This collection of 5 elegant towers is positioned around the bustling inner plaza, alongside the 700 metre long private sandy beach, looking out over Dubai Creek Harbour and beyond, many apartments enjoy spectacular views of the Dubai skyline. Stylish 1, 2 and 3 bedroom apartments and stunning 4 bedroom penthouses are available to buy. Each of the apartments has been designed with modern luxury living in mind, with spacious interiors and light flooding in through large windows. The on-site development facilities include a pool, gymnasium, children’s pool, children’s play area and entertainment room, together with access to the stunning beach, poolside relaxation area and bar and a broad selection of retailers within the development.
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Peninsula, BUSINESS BAY
FROM £128,000
Designed with the modern city life in
retail, and the leisure and recreational
mind, the stunning contemporary
facilities within the development.
Tower Apartments of Peninsula One
Whether you are a single professional
offer residents an incredibly high
or a growing family, Peninsula has
standard of living with premium
been designed to suit every need.
finishes throughout the properties, in
With a long track record of building
an idyllic waterfront setting.
some of the world’s most luxurious
This selection of truly special
buildings, the developer behind
residences are incredibly well-
Peninsula has an extensive and
connected, being positioned in the
impressive track record for delivering
Business Bay of Dubai, Dubai’s famous
award-winning properties.
office district, The Peninsula is just a
Already one of the most sought-after
few minutes from Burj Khalifa, Dubai
developments in the region, Peninsula
Mall and Dubai Opera, and Dubai
will quickly become one of Dubai’s
International Airport is just 16
most coveted addresses.
minutes away. Peninsula will create a vibrant and exclusive community, with careful consideration having been put into
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UK
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Ancoats Gardens, MANCHESTER
FROM £289,995
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Located in the Ancoats area of
exposed concrete walls and ceilings,
Manchester, a location recently voted
quartz worktops, beautiful textured
to be one of the coolest
woodgrain antique maple flooring and
neighbourhoods in the world, this
bespoke luxury furniture created to
impressive development of 155 luxury
compliment the style and layout of
apartments is in an excellent city
each apartment. Quality fittings and
centre location and boasts an array of
fixtures are being installed in each of
amenities for residents use.
the properties including Bosch
Designed with the modern, young
integrated appliances, LED lighting
professional in mind, Ancoats Gardens
and air source heat pumps with
not only offers stunning apartments
underfloor heating.
but residents also benefit from access
Positioned within minutes of
to a private residents lounge, co-
Manchester’s business and leisure
working space, rooftop gardens and a
districts, Ancoats Garden’s is perfectly
large duplex gym.
located for those who live and work in
Contemporary design is being used
the city. N.O.M.A, the media and tech
throughout the building including
hub and home to Amazon are just 5 39
minutes away. Many of the city’s luxury retailers, including Selfridges and Harvey Nichols, are within 10 minutes and Manchester Piccadilly train station is 12 minutes away. Manchester remains to be one of the most exciting and promising locations in the UK with considerable price growth predictions and demand from professional tenants incredibly high for modern rental apartments in the city centre.
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Newbury Place, NEWBURY
FROM £195,000
Beautifully designed and equipped with
town centre yet positioned on a quiet
the finest fittings and fixtures, no
residential road.
detail has been missed during the planning process of the contemporary
Whilst the town’s amenities are just a
Newbury Place apartments, ensuring
short walk away, the building itself
they are functional and enjoyable
boasts several on-site amenities
places to live.
including a fitness room, leisure atrium, a media screening room, off-
This collection of chic and modern
street parking, and a concierge service.
residential apartments is in a soughtafter part of Newbury. Positioned close
Newbury Place presents the
to the town centre with easy access to
opportunity to secure a luxury rental
the amenities, a short walk from local
property in a location rarely available
parks and less than 860m from the
to investors, set to achieve robust
railway station, making it ideal
growth in the coming years.
for commuters. Newbury Place offers an idyllic balance as a desirable place to live, near to the 42
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FEATURE ARTICLE
WHY
DESERVES A PLACE IN YOUR INVESTMENT PORTFOLIO
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N
ot only is property one of the most reliable forms of tangible
investments, but it also offers incredible flexibility with regards to the types of property you can invest in, the investment strategy you choose and even the location of the property. In many ways, it’s easy to keep an ear to the ground when it comes to UK property. After all, it’s a given that certain cities will attract higher yields for landlords. Others may be considered as up and coming areas that will eventually give you a generous payoff if you’re patient enough. Many of the top untapped locations feature in our investor emails and magazines, helping you to keep a pulse on which areas to look out for.
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But what happens when you step outside of the UK property market? Without looking at the full picture, this creates the possibility that incredible opportunities elsewhere across the globe could be passing you by. This is certainly the case with the Dubai property market, for anyone who is yet to invest in property here. For those who aren’t up to speed on the property market in Dubai, particularly the buy-to-let scene, here is everything you need to know, including why the city is a worthy contender for any investment portfolio.
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If you’re a subscriber to our investor insight emails, you may have seen that Dubai was crowned the top city for rental yields for 2021.
HIGHEST
Rental Yields for
IN THE WORLD 2021
Using data from Numbeo, we checked the rental yields of the top global cities and this is what we found…
9.19% Miami 8.33% London, Canada 7.89% Los Angeles 5.52% New York 4.48% Toronto 3.93% Milan 3.46% Berlin 3.43% Sydney 2.88% Singapore 2.48% Moscow 2.47% Paris 2.27% Seoul 1.09% Dubai
But as any investor will know, purchasing a buy-to-let property is more than just about rental yields.
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What’s unique about Dubai is that it has far lower purchase prices than the likes of London or New York in combination with those high yields. So in essence, it costs far less to tap into the Dubai property market and you’ll be rewarded with extremely good returns for doing so. All the while, your investment will gradually increase in value, and given the exponential growth Dubai has been experiencing in the last few years, now poses the perfect time to get in on the action while the pendulum very much still swings in favour of new investors. While it’s impossible to make direct comparisons with Bitcoin, something we hear time and time again in our investor interviews is that ‘if only’ people had invested in cryptocurrency back in the day. In terms of the property market and projected future growth, Dubai is very much showing itself to be the equivalent in terms of its potential. All without the risk involved since property is not an unknown format and the developers have existing successes for you to factor in as part of your decision. The only difference is, you’re reading about Dubai’s incredible growth and low property prices versus high rental yields now, and not in 10 years time!
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opportunities
BUSINESS BAY FROM £128,000
Imagine trying to secure a luxury new
renowned in the Middle East, having
development in a central location in a
built some of the most notable
city such as London or New York and
developments to grace the Dubai
get change from £130,000. Unless you
skyline, including The Residences At
own a time machine, it’s just not going
Marina Gate, Royal Oceanic and
to happen. In fact, a quick look on
Bay Central.
Rightmove will in fact inform you that this amount of cash will just about
Select Group have also completed
stretch to buying a parking space.
many notable projects here in the UK too, including 98 Baker Street which is
But in Dubai? You can purchase a
also being represented by us here at
prime piece of real estate in Business
Thirlmere Deacon.
Bay which is just moments from The Burj Khalifa offering unrivalled
However, unlike 98 Baker Street which
waterfront living, built to an incredibly
starts at £850,000, we think you’ll
high specification starting at just
certainly agree that £128,000 is quite
£128,000, for a projected yield of 8%.
an attractive price point, especially given the quality of the build and the
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The developers of Business Bay -
location of Business Bay in the heart
Select Group - are some of the most
of Dubai.
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NoINincome tax DUBAI This is another common fact about
income tax is also a factor that is
Dubai that often surprises people when
highly appealing to expats, along with
they learn more about the UAE because
those who move out to Dubai
frankly, they didn’t realise it could
temporarily for work. It is also yet
even be something that was on the
another selling point that makes the
table, especially when we’re all so used
buy-to-let market strong in Dubai since
to the UK taxation system.
workers who are attracted to the high salaries and zero income tax will need
Yet, it’s true! Dubai doesn’t collect
accommodation throughout their stay.
income tax, nor does it collect any
So why not provide this to them as a
annual property tax or inheritance tax.
build-to-let landlord and reap the rewards?
What investor wouldn’t want to keep more of their money? The lack of
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quality
EXCELLENT BUILD
As a buy-to-let investor, something
flooring. The building is also abundant
that’s always going to be at the
with luxury amenities, meaning
forefront of your mind is the quality of
residents have everything they need to
the build. If the build quality is poor,
work and play within the building
or if the building is so old it’s in need
itself. As is standard with Dubai
of constant maintenance, this means
property, sophisticated air conditioning
more involvement for you as a landlord
systems also ensure the rooms remain
and ultimately more expense. Plus,
perfectly comfortable even during the
your yield will undoubtedly suffer if
hottest season - a minor detail to some
the building isn’t up to modern
but essential to ensure 365 days of
standards, even if the property happens
perfect use and enjoyment of your
to be situated in a prime location.
property.
In Dubai, not only do we offer our
If we go back to that price point of
investors new builds, but we think
£128,000, it’s simply not going to be
you’ll agree the standard of them is
possible to secure something of such
nothing short of outstanding. In The
high specification in the likes of
Peninsula development, every single
London. Yet with Dubai, it’s a major
facet has been subject to careful
city, the build quality is excellent and
consideration, using materials such as
therefore, it’s very much possible!
quartz and stone for the worktops and
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lifestyle benefits AMAZING
When considering investing in Dubai
single year, and given the lockdowns
property, much of the focus is naturally
we’ve experienced, it’s no wonder that
going to be on the property itself.
tenants value access to the outdoors
However, similar to how when
and of course, the chance to enjoy
searching for a property in the UK
constant sunshine as part of their
you’ll consider the wider location, this
considerations when moving abroad.
is true of Dubai too. Given Dubai also has low crime rates,
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A huge difference with Dubai is that it
political stability and world record-
benefits from year-round sunshine, and
breaking attractions on your doorstep,
while the weather may seem like an
it really does have something for
insignificant point, it is in fact one of
everyone. For any tenants who move
the top reasons why people purchase a
with their families, they will also be
home in a different country. Some
pleased to know Dubai has extremely
400,000 British citizens emigrate every
good schools including 58 British
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schools in the city alone and much lower childcare costs than in the UK. In November 2020, the UAE also relaxed rules surrounding unmarried couples living together and requiring a licence to drink alcohol. While we’d always recommend conducting your own research with the relevant authorities, a relaxation of two laws that previously caused hesitation for tourists and residents alike should be seen as hugely positive for investors, especially with the influx of new interest this could bring to Dubai in the coming years as a result.
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IN SUMMARY:
Why Dubai
Dubai is very much the jewel in the
check out our Peninsula One
Emirates crown, especially in terms of
opportunities or contact our Dubai
what it has to offer for investors. Low
office directly to help select the right
entry points paired against high rental
opportunity for your portfolio. Now is
yields are something every investor
very much the time to do so, since
should take note of, especially given
Dubai is undergoing a seismic
the excellent build quality that
transformation as a hub for business
developments in the city have to offer.
and innovation. Investors are therefore encouraged to secure their slice of the
We welcome all interested parties to
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pie while it’s still hot.
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Outlook FOR 2022:
UK PROPERTY MARKET 66
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SEASONED REAL ESTATE EXPERTS, Thirlmere Deacon consider what’s ahead for the UK property market in 2022.
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In 2021, the country’s property market
of properties available and face
has excelled considerably with £473
competition in the market when
billion worth of property expected to
looking for a place to buy, those who
be sold before 31st December 2021,
are able to secure a property for a fair
£95 billion more than the value of
price in the closing months of 2021 or
sales in 2020*. What does this busy
early 2022 are set to enjoy robust price
year mean for 2022? And is now a
rises in the coming years - It’s an
good time to buy?
exciting time to buy property
Whilst homebuyers and prudent
in the UK.
investors might experience a shortage
* According to Zoopla 70
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PRICE
predictions As the country has emerged from
over the next 5 years.
periods of uncertainty in the past, those who secured a property in a
Even with these impressive price
rising market have experienced the
growth predictions, what you buy and
greatest return on their investment.
exactly where you buy remains the key
Property price forecasts have remained
to success when investing in property
consistent and unanimous in their
– certain cities and towns within each
prediction that price growth will be
region will outshine others in the rate
steady in 2022 and thereafter, with
of capital appreciation they experience
certain parts of the country expected
over the next 5 years.
to experience almost 30% price growth
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Prime Central London, which includes areas such as Mayfair and Marylebone, are an example of a micro-market within a broader area that is set to do far better than its surroundings. The latest price growth forecast for London overall sits at just 12.4% by 2025. In comparison, the analysts** predict that Prime Central London will experience price growth of 21.6% in that same period, almost double. In other parts of the country the North West region which includes Manchester and in Yorkshire & The Humber where you’ll find Hull, prices are predicted to rise by 28% over the next 5 years. Price growth continues to be strongest in those areas where property remains to be affordable, this was seen throughout 2021 where the cities with the highest price growth were Manchester, Liverpool and Sheffield.
** Savills latest price predictions 74
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THOSE WHO
sit on the SIDELINES and wait for
THE ‘PERFECT’ MOMENT
to take ACTION will often
MISS OUT.
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Why
THE UK?
When comparing UK property to homes
might have risen considerably over the
across the rest of the world there are
past 10 or 20 years when the cost of a
some notable differences. In particular,
property in the UK is compared to
the quality of housing in the UK stands
those across the rest of the world, they
out as some of the best in the world
are still in fact reasonable. For
with regulations that ensure developers
example, the average price of a
must meet certain standards, and
property in the UK is £254,624 which
works must be signed off by qualified
is far less than the average price of a
professionals.
property in Singapore, for example, which is currently £1,122,889***.
Furthermore, whilst prices in the UK
*** Figures from Value Champion 78
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HOW SECURE IS UK PROPERTY? The UK property market has
the UK property market has
continuously proven its resilience in
foundations unlike other property
the face of political and economic
markets across the world. There are
uncertainty for many years, and with
key policies, brought in by the New
the government supporting its recovery
Labour Government in 2008 and 2009
as and when needed, homebuyers and
that intervene and ensure the UK
investors alike can find comfort in UK
property market is not significantly
property that isn’t available with other
adversely affected. For this and many
asset classes.
other reasons, UK property is an appealing prospect to investors across
With robust housing policies in place,
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the globe.
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WHY INVEST NOW? With property, investment time is very much of the essence. Those who sit on the sidelines and wait for the ‘perfect’ moment to take action will often miss out. That’s not to say investors should take unnecessary risks, but a calculated approach to investing can be incredibly fruitful. Property investment is not a strategy known to trigger overnight success – those who place funds into property should expect to leave it there for 5 years, or longer, to see the greatest return on their investment. Very few investment options are as resilient and on a path to experience almost 30% growth in value by 2025.
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GROWING TRENDS IN THE UK PROPERTY MARKET
By Joe Carbonaro, GETGROUND 84
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2021 was the year everything was supposed to get back to normal. The reality was somewhat different. After a rollercoaster two years, you’d be forgiven for opting not to make predictions for what will happen in the property market. But amongst all the ups and downs, there are some trends emerging that it’s well worth pausing to examine to see how what’s happened in the recent past might impact what happens in the not-sodistant future. Here are five standout themes that we, at GetGround, will watch closely in the year ahead.
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The great ‘REVERSE EXODUS’
Fed up with being confined to their homes for months on end, ONS data shows that in the first six months of 2020, more than half a million town and city dwellers in England and Wales took to the countryside, tempted by the larger gardens, cleaner air, and an often slower, calmer pace of life. But it seems that for many, the appeal of the country idyll waned. Whether driven by jobs, schooling or social life, by the end of 2021 press reports emerged of people abandoning the good life for a return to urban life.
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In this scenario, opportunities abound for urban property investors. Rental demand is widely anticipated to be high from those returning to cities having sold low and bought high in the ‘rural rush’ and now in a hurry to get back to urban living. While prime central London will continue to have a huge appeal, access to land remains minimal in these areas, so developers will head to the outer London zones. That fits the assumption that many city ‘returnees’ now favour a suburban lifestyle that is close to city centres but allows them the fresh air and gardens that are hard to give up.
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At the beginning of the pandemic,
of developments that paused launches
global cities ground to a halt in a way
and completions over the last 12-18
that no one has ever seen before. Sites
months will come to market
under development lay practically
during 2022.
empty for weeks as builders and contractors worked out how to operate
That’s good news for investors, adding
them safely. Projects fell behind
more quality stock to the London
schedule and other developments were
market at a range of price points. Add
paused indefinitely before they had
to this, the continual demand and
even launched.
growth for property in key regional markets around the country, London
In recent months, London construction
may appear to look unconventionally
is regaining pre-pandemic levels,
good value in the second half of 2022.
leading to expectations that a number
LONDON DEVELOPMENTS REEMERGE AFTER PANDEMIC PAUSE
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Whether it’s HS2, the North’s great ‘levelling up’ agenda, or the rising popularity of life beyond London, regional cities are getting better at attracting business investment - that means more offices, more retail, more homes. We expect regional capitals - notably Manchester and Birmingham that vie for the title of the UK’s ‘second city’ - will likely see the largest price rises across 2022 given the rapid
Regional CAPITALS CLAIM new territory
regeneration and redevelopment of these areas. Take just Manchester, for instance. In recent years, Sky, Deloitte and Hewlett Packard were among many multinational organisations that established large offices in the city, attracting thousands of new workers (and their families) to make their homes locally. Add to that the continued impact of Media City in Salford that drives culture and the arts to and around the region, and the Greater Manchester area looks particularly attractive. It’s unsurprising that in the last two years, one in four companies created on the GetGround platform have been formed to invest in properties in and around the so-called capital of the North.
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LIMITED COMPANY INVESTING MAKES ITS COMEBACK In the past five years, the number of properties purchased through registered UK company structures has trebled nationwide. For decades, the preference among landlords and investors was to buy in their personal names, but as accessibility, transparency and efficiency have become more important to our everprofessionalising community of investors, the tide is turning. 96
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Most of us will have no living memory
surprise then that the proportion of
of a time when property investment
limited companies formed to invest
through company structures was the
in property is increasing year-on-
norm. Personal ownership took
year. Financial and tax benefits of
precedence over companies over the
company investments are well
course of decades as the latter became
understood; less so is the ease with
perceived to be too challenging to
which company-owned properties can
manage. But now, technology
be monitored and assessed. Data
innovation has stripped back the
about the performance of each
complexity, equipping investors with
company in a portfolio can be tallied,
transparent mechanisms and strategies
assessed, matched and compared.
to mitigate risk, maximise returns and
Quality, accessible data equips
achieve comprehensive visibility over
investors with better decision making
their investments in one single place.
power. Investors can make informed investment decisions to fit their
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Events of the last two years applied
changing life circumstances, or in
pressure to almost everyone’s finances
anticipation of issues, not in
in some way, shape or form. It’s no
response.
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The rise of the multi-landlord
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Today half of all companies created and
and property prices rise. For them, a
managed by GetGround have two or
share in an investment property
more shareholders. This is a trend
becomes something more attainable.
we’re excited to see develop in the
We’re seeing more enquiries and
year ahead. It points towards an
action from groups of friends or
alternative route to asset appreciation
business partners to co-own rental
for people - often younger or on lower
properties, allowing them a piece of
incomes - for whom the pandemic has
the property appreciation pie as they
put homeownership even further
accrue their deposits for their first
beyond reach as interest rates, inflation
homes.
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Joe is Global Head of Consulting at GetGround. On a mission to make assets more transparent, trustworthy and accessible, GetGround enables landlords and property investors, based anywhere in the world, to more effectively manage their UK residential investments: facilitating the creation, structuring and future management of buy-to-let companies online and hassle free. At its current run rate, GetGround is adding $1 billion of UK property to its platform a year on behalf of thousands of landlords and investors based in more than 60 countries globally. To find out more, visit www.getground.co.uk or email Joe directly at joe.carbonaro@getground.co.uk 102
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Burnley RIVERSIDE LOFTS 104
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