brexit beating property investments

Brexit is looming and much is uncertain. This has certainly had an impact on property in London, but are there any other areas that are “Brexit-proof”?

With Brexit looming and a deal still not reached, many investors are feeling hesitant about investing so much money in London. As a result, there has been a decrease in the number of people putting their houses on the market. Rightmove report that the average house price in London has now dipped below the £600,000 mark.

Regardless of the Brexit uncertainty, the UK remains one of the most attractive places to do business and topped the Forbes list for the second consecutive year. As investors are becoming more cautious of the London property market, the spotlight has shifted to other cities where the impact of Brexit on house prices is predicted to be much lower.

Cities that have seen high annual growth for a sustained period

So far, six cities have seen annual growth of more than 6%, including Leicester (7.7%), Edinburgh (7.4%), Manchester (6.3%), Birmingham (6.2%), Nottingham (6.1%) and Liverpool (6%). Properties in these cities have also experienced the fastest price growth since the EU referendum, and Sheffield also joints the list in 4th place. In ten years in Sheffield prices have risen by more than £33,000 on average.

How HS2 can further stimulate growth in northern cities

The construction of HS2 will also mean that the country will grow less reliant on London, and businesses will look outside of the capital when it comes to deciding a location for their headquarters. The main aim of HS2 is to connect the north of England to the south, as currently most business activity occurs in London and the surrounding areas. The project to stimulate economic growth in northern cities is referred to as the Northern Powerhouse. Although it is mainly focussed on Manchester, other major northern cities such as Leeds and Sheffield are also due some redevelopment.

Regeneration in Leeds, Manchester and Sheffield

New developments in Leeds include a plan to redevelop abandoned warehouses in the south of Leeds into houses, hotels, offices, restaurants and bars. There is also the £150m redevelopment of Quarry Hill which will be transformed into offices and residential spaces.

Regeneration in Manchester includes The Factory, a creative space that will allow artists to produce work on a large scale. Plans have also been approved to regenerate the Great Northern Warehouse area in the city centre’s Civic Quarter and to create a new residential quarter in the city centre called St John’s. Football legends Gary Neville and Ryan Giggs have also proposed their own regeneration project that has recently received the green light. The project will include a 5-star hotel with 216 bedrooms and a 39-storey tower block that will contain 189 apartments and office space, a rooftop terrace, a public square and a synagogue.

Sheffield is also experiencing vast amounts of regeneration, as the next phase of major work to the city centre gets underway. The main focal point is a project named Heart of the City II. This is a £470m plan for hotels, shops, a food hall and public spaces for an area just behind Pinstone Street. Plans for a new set of buildings that will include boutique office space, a café, a courtyard garden and over 50 apartments have also been submitted.

Properties in places such as Leeds, Manchester and Sheffield start at a lower base point compared to property in London. The overall average property price in Sheffield for example stands at £198,103 (according to Rightmove), which is a rise of 6% compared to the previous year. The regeneration work within the city will help lift the prices further as new amenities and entertainment venues will make it a more attractive place to live in.

When is the “ideal” time to invest?

Sherwood Square is one buy to let opportunity based in the Nottingham suburb of Carlton. The development is a contemporary collection of 42 one-bedroom apartments starting at £104,995. Features include anti-slip vinyl flooring, custom built kitchens and stylish bathrooms.

With an estimated 6.75% per annum gross rental yield, Sherwood Square provides a robust investment opportunity for the astute investor. The ‘Monthly & Mortgage’ plan, where the 30% exchange deposit is divided by the 24 months build schedule and the remainder paid on completion by way of mortgage or cash, provides an attractive low point of entry into the property market.

Contact One Touch Property today to find more about this buy to let investment in Nottingham, and about investments offered elsewhere in the United Kingdom.

Buy to let investment alternatives

Retirement home investments may be a useful alternative to those who are still wary of the buy to let market in the lead up to Brexit. Unlike traditional UK property investments which rely upon supply and demand, the need for retirement homes is underpinned by the UK’s ageing population. Retirement homes that attract self-sustaining residents are being seen as increasingly attractive investments with Knight Frank estimating that £20bn of overseas equity is set for investment in the sector. They also estimate that that over 60s in England alone have over £1,200billion in unmortgaged housing wealth, which means they are in a good place to afford the fees associated with luxury living. A luxury retirement suite typically starts from £70,000 and offers a 10% return over a ten-year commercial lease.

To conclude, even with Brexit around the corner, there are still opportunities for investment. Property prices in northern cities seem to more resilient to the uncertainty, and the sustainability of retirement home investments is underpinned by Britain’s ageing population rather than demand.

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