City Centre Living Makes a Come Back

The long trend of suburban living is slowly coming to an end. UK cities are now reviving city-centre living lead by the younger generation.

Young, single, and highly educated millennials ranging from the ages of 22-29 years old have rapidly increased throughout the years, with the population of large city centres in England and Wales between 2001 and 2011 almost doubling.

Happy multiracial friends walking on Brick Lane at Shoreditch London - Friendship concept with multicultural young people on winter clothes having fun together - Soft focus with warm contrasted filter

While there is no definitive method to determine a region’s city centre, it is usually identified as:

-0.8 Mile radius from the centre of the city.

-Occupation of the residents will range from 500,000 to 4 million.

-0.6 Mile radius from the centre of the towns with 135,000-550,000 residents.

-0.6 Mile radius from the centre of neighboring cities with 135,000-550,000 residents.

Manchester, Liverpool, and Birmingham are now home to smart new high-rise apartments and street corners bustling with the trendiest cafes, bars, and restaurants-appealing more to millennials. This has been come to be known as an urban renaissance, creating a major demographic shift in daily living.

Urban renaissance is massively seen in Manchester, the urban area’s core has grown seven times faster compared to the remaining metropolitan area between the years of 2006 and 2016.

Manchester’s regeneration, a plan set by Manchester Millennium Limited-a public and private partnership aimed to ensure redevelopment in the region, is the main drive for the change leading it to become the second hottest market after the capital, London. High standard of living combined with UK’s largest companies including the Royal Bank of Scotland (RBS), Barclays, and BNY Mellon, drive the young generation further into the region.

Taking the lead as one of the fastest growing urban cores is Liverpool. According to the Office for National Statistics, population has increased to a whopping 181% between the years of 2002 and 2015.  Student population alone grew by 208% due to their regeneration program and focus on The Knowledge Quarter. With 1 billion pound investment pumped into The Knowledge Quarter, it aims to house science, technology, and education in a single space to drive further prosperity and flag the city as an international hub.

Other cities in the playing field for urban revival are Birmingham with a population growth of 163%, Leeds and Sheffield by 150%, Bradford by 146%, Leicester by 145%, Milton Keynes by 113%, Southampton by 94%, and Cardiff by 88%.

Economic performance is tied with urban revitilization.  A vital and booming urban core creates new job opportunities for millenials, driving the economic engine into full blast.

To become a part of the urban renaissance, Oxford Property Investments offers you exclusive commercial investments in London, Manchester, and Liverpool.

Visit our website to know more.

www.oxfordproperty.com

 

 

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The Need for Accommodation with the Rise of Student Population

Our parents are so proud of us
Shot of a group of cheerful university students on graduation day

The United Kingdom has seen a significant rise in student population with almost half of all young adults moving on to higher education.  In the year of 2017, there were around 2.32 million students studying at institutions of higher education with 1.76 million undergraduates, 551,585 post graduates, 1.8 million full-time students, 518,930 part-time students with 1.87 million from the United Kingdom, 134,835 students from the European Union, and 307,540 students from non-EU countries. (Universities UK , 2017 ). Rising numbers and the influx of international students is largely due to the shape of the UK higher education sector and the impact of the universities on society and the economy.

New undergraduate funding implementations, or the introduction of the 9000 GBP tuition fees in 2006, caused significant change in England’s and Wale’s education sector. However, the rising age of millennials and Generation Z, have led to more participation of students in higher education with their recognition on the importance of the matter. World-class universities attract international students with a market share of around 13% recorded in 2011 and is only second to the United States globally with 16%.

The ongoing trend is expected to continue with London’s full-time student population expected to rise by 50% alone in the next decade (JLL, 2015), causing a great demand on student accommodation. Recent reports and data have confirmed the health of the asset class with a 2.9% increase in rents per bed between the 2017-2018 academic years, a 0.2% increase from 2016-2017 (Student housing in demand , 2018).

Student accommodation in the United Kingdom is set as a secure, profitable asset class with high guaranteed returns. The market is recession proof, indicating that whether the economy is facing a downturn or not, individuals tend to further their education to improve the current situation.

Benefits of Investing in Student Accommodation:

  • Secure Asset
  • High Returns
  • Increasing Student Population
  • Recession-proof
  • Hassle-free
  • UK is an international hub for local and foreign students

Oxford Property Investments offers Natex, a new student accommodation development in the heart of Liverpool. It is a 556 unit student scheme with two blocks of 10 and 16 storeys compromising of 472 clusters and 94 studio apartments, offering several choices for post graduate and older students at a variety of price points.

The development offers:

  • 9% Net assured returns for 5 years.
  • Prices starting from 62,500 GBP
  • 5-minute walk away from the University of Liverpool and Liverpool John Moores
  • Exclusive amenities and services for the tenants

 

You can find out more by contacting us at, +971 4 4403100.

 

The Progression of the UK’s Buy-to-Let Market

Mature couple standing in front of house

Britain’s buy-to-let market has seen a tremendous development since the 80’s, causing a complete transformation in home ownership.

Public residential housing, referred to as ‘council housing’ by the local government in the United Kingdom, was a policy implemented from the 1920’s and onward to house families in rented accommodations. World War 2 bombings and a slum clearance policy created a demand for affordable housing with limited supply. The Land Acquisitions Act in 1946, gave the right to local authorities to develop land, giving way for the rise of council houses with a queuing mechanism and with priority to families with low income or special conditions. Relatively low rents gave incentive to the tenants to never leave the council houses, even if their monetary conditions were to improve. With high maintenance costs on the government due to cheap construction, the local government was required to take immediate action to keep the economy afloat.

The buy-to-let market kicked-off with the Right to Buy (RTB), a movement introduced by the Conservative Party and lead by Margaret Thatcher, the Iron Lady and former British Prime Minister, in 1979. The Right to Buy law was implemented in October 3rd of 1980 to all residential properties where the landlord was a council, new town, or any other public sector and included the following:

  • 33% discount for tenants who had resided in their home for up to three years.
  • 50% discount for tenants who had resided in their home for up to 20 years.
  • Available and guaranteed mortgages by the local authorities.
  • £100 deposit to hold the sale for 2 years.

New housing policy gave advantage to ex-council tenants who could now afford the properties they lived in and tax payers, who thrived in a time of housing and economic boom.

The optimism of the market and increased consumer spending led to the UK recession in the early 1990s and in return a shortage of housing supply. Residential property prices dropped significantly and a large sector of the public could no longer pay their mortgages. However, in 2008, the market took a sudden demographic shift and over one million buy-to-let properties were purchased alone in that one year. Investors were seeing the rise of the private rental sector and were transforming the buy-to-let market into the strongest asset class.

In 2015, the Conservative Party committed to extend the Right to Buy and stated:

‘We will extend the Right to Buy to tenants in Housing Associations to enable more people to buy a home of their own. It is unfair that they should miss out on a right enjoyed by tenants in local authority homes. We will fund the replacement of properties sold under the extended Right to Buy by requiring local authorities to manage their housing assets more efficiently, with the most expensive properties sold off and replaced as they fall vacant’. (Conservative Home-https://www.conservativehome.com/thetorydiary/2018/04/the-conservatives-must-press-on-with-giving-housing-association-tenants-the-right-to-buy.html, 2015)

The private rental sector continues to dominate public housing with extremely low mortgage rates and an average gross yield of 5.3%. The asset class continues to stand strong and grow despite of all the challenges it has been throughout time and proves to be a profitable investment with financial security.

 

Investors Don’t Want London Anymore

Long has been the investor’s dream to invest in London real estate: the world’s financial center, the English capital, the prestigious and historic landmark. But this is no longer the case.

A proposal has been implemented in efforts to boost the UK’s economy and make the North the powerhouse of the UK.

The Northern Powerhouse is part of the UK’s recent industrial strategy. It is the regeneration of Northern England.

The cities included in this project are Manchester, Liverpool, Leeds, Sheffield, Hull and Newcastle.

The government is collaborating with local stakeholders to identify the cities’ limitations, and work accordingly to meet the citizens’ demands.

Because of this, the North is attracting major investments. It has become a hub for investors, from all over the world.

It aims to improve all amenities in these cities, from transport links, science, innovations, and the overall quality of life.

On The Northern Powerhouse official website, they state:

“If the Northern Powerhouse were a country, it would be among the biggest economies in Europe.”  

And that’s not an exaggeration. The businesses in the project include some of the world’s largest multinational corporations including Barclays, Vodafone, ATKINS, Colliers, and many more.

Since the proposal’s implementation, it’s been recognised worldwide as the investor hub. The investment projects in 2015/16 have increased at twice the UK’s national average – creating 13,700 new jobs.

The size of Media City UK will be doubled. 1,000 new homes will be built, adding to the UK property market. This means billions of pounds of investment.

The Northern Powerhouse also hosts 7 international airports, as well as 12 major foreign trading ports.

Trade also finds its home in the North of England. Over £54.5 billion of goods from 25,000 companies have been exported in 2016.

 

So why does all of this matter to investors?

 

If you’re considering investing in the UK’s buy-to-let industry, we highly suggest the Northern Powerhouse. This is because it is growing at a faster rate than any other area in the UK.

 

Thousands of jobs every year are being created, which means that the population in these cities will continue to increase. All of these people seeking new jobs will need somewhere to live, and with such high standards of living, they will want to live somewhere good.

 

For buy-to-let property investors, this is an opportunity not to be missed. The best time to invest is now. You’ll be able to receive your returns by letting out your property (in value of rent), and also benefit from the asset’s increased value overtime. The average returns are around 7-10% for buy-to-let investors, and these are NET returns, guaranteed.

 

If you’re interested, visit our website to know how you can partake in buy-to-let UK property opportunities.

 

 

 

Wait – You can invest in Airport Parking?

In the age of globalization and ever-growing need for travel, airports are as frequently visited as shopping malls. The annual number of passengers in Heathrow airport alone is 78 million.

How many of these passengers need to travel to the airport by car?

Many.

This is why the market of airport parking (also known as car park space investment) is flourishing and has been growing tremendously over the past decade, making it one of the fastest growing assets of our time.

It is less hassle to park one’s car in the airport instead of getting a friend to drop them, and then again pick them up when they arrive again.

So why do investors choose airport parking spaces?

They are less costly than other assets in the real estate sector (ranging around GBP 25,000). Some companies offer fixed returns as high as 8% per year.

By investing in an airport car parking space, you own that area. Therefore, in the UK for example, you are provided with a Title Deed, outlining that you own this parking space, legally, guaranteeing you that your offer is not a scam.

Another factor that attracts many investors to a car park space investment is the leasehold period, which can be up to 999 years (basically for your entire lifetime, your children’s and your grandkids’.)

It is important however to choose your parking investment wisely, as with any of your investments. A better airport parking investment is one with a developer that has relations with the airport itself. Prioritize airport parking spaces which offer shuttle services; they are safer, more guaranteed, and reputable.

Do not forget to read on or inquire about the statistics of the airport itself; the number of passengers, daily flights, regeneration plans, and size. The more the people traveling to and from this airport, the higher the possibility your parking space will be occupied. Sometimes, even that is not a problem if you are working with a reputable developer, as they can have occupancy rates as high as 98% – thereby assuring that your parking space is always occupied. This is often how they guarantee your fixed returns as well.

To invest in parking spaces is to invest in your future – which we believe in OPI to be the benchmark of any good investment.

Best of luck, and happy investing.

For more information on airport car park investments, check out our website

For information on property investments in general, keep scrolling! And don’t hesitate to contact us for any questions.

+971 4 440 3101

contactus@oxfordproperty.com

What’s the deal with real estate?

A parent’s favourite past-time is to tell their children to invest in real-estate. Many invest in real estate because it is one of the most celebrated, timeless investments. A property’s value is almost always bound to increase (especially in bustling cities such as London and Manchester) – just as land plots steadily increase in value.

However, it is important to pick the right properties. Not every property will guarantee returns, but there are factors that can almost assure you that this property will remain valuable in 10 or even 80 years’ time.

How to pick a good property? Location. Simply put, a property’s location can mean a good deal or a terrible deal. If you are considering investing in a splendid property neighbouring a slum, stop. If you are considering investing in a refurbished property, or a property sitting in an area with conversion plans, or that’s located nearby important roads, then do continue.

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Economy

A stable economy has real estate as its cement. In the case of the UK (one of the most stable economies worldwide) real estate plays a central role, having a market value of £1,662 billion, contributing £94bn sterling pounds to the economy, which is 5.4% of the country’s GDP.

Real estate employs millions worldwide, and over 1 million in the UK.

Unlike other types of investments, such as crypto-currencies, properties are actually tangible – therefore, they make up one of the most valuable asset classes, being something people can touch, see, reside in, and make a home.

People will always need a place to live, and the population is steadily increasing worldwide. The World Bank figures state that the world population was 3 billion in the 1960s, and has more than doubled to almost 7.5 billion today.

Investors should always choose the asset-class that best suits their needs. This is why real estate is such a buzz-term: because it works, and there is a niche for every investor. Buy-to-let property is by far the most famous investment type, alongside student property and airport parking. Even carehomes are a guaranteed investment in some parts of the UK.

The reason real estate UK attracts many investors is that many of these properties are guaranteed, with fixed returns of up to 12%. Some even start with just 25,000 sterling pounds.

Real estate investment is a timeless truth.

If you want to learn more on why real estate is such a recognized and well-established form of investment, follow our blog or read more here.

Happy investing!

 

 

Better the Location, Better the Investment.

Residential property prices across England are increasing by the drop of a hat compared to that in London, according to the latest ONS and Land Registry figures.

The April’s stamp duty and June’s Brexit vote has cast its effect mostly in London, which resulted pockets of stagnant or fall in price growth during the second half of 2016.

Initially, house prices have risen at a considerably faster pace in London compared to rest of the area of Britain. However, 2016 ended with property prices rising by 7.7 per cent to £236,000 in comparison to 7.5 per cent in London.

Property price growth has been lately softening with the capital under performing the national average for the first time since the financial crisis of 2008, states Rob Weaver, Property Partner’s director of investments.

Despite the fact prime central London has hit something of a wall, outer London boroughs are still witnessing a double-digit price growth.

Image result  Image result for barking and dagenham

Out of 33 boroughs in London 8 boroughs have recorded a significant price growth of more than 10 per cent in the past 12 months, with the biggest increases in the capital’s most affordable borough, Barking and Dagenham.

To Read more: http://www.homesandproperty.co.uk/property-news/house-prices-across-england-are-rising-faster-than-in-london-for-the-first-time-since-the-2008-a108091.html

Herald Land is a profitable UK investments company, dedicated to serve you the best property and land options for your preference. Our enthusiastic and expert consultants are there to help you make the right decisions for your investment success.

We have our options ranging from Land investments, Airport Car Parks, Student Property, Hotel and Residential investments in the most well-known and highly on demand areas of the UK.

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