Real Estate Investor Magazine South Africa October 2015

UK UK Property Investment Secrets Time to leave London for the best returns? BY GILES BESWICK A So why would a first-time investor considering making a UK property investment look anywhere else? The emergence of Manchester Manchester has been bestowed a number of accolades in 2015. It was named by HSBC as the UK’s second city for investment and buy-to-let property hotspot, whilst it was once again named Britain’s best city to live in by the Global Liveability Survey. The largest economic area outside of London, Manchester’s growth has been stark. Its population is growing at three times the national average and 150,000 new jobs are forecast to be created over the next few years. This growth has been reflected in the property market. With one of the lowest levels of housing stock in the country, Manchester cannot keep up with the sustained demand for property, resulting in capital growth of 21% in the last two years and rental rises 13 times faster than London. The market in the capital has peaked The London market has reach the top of its cycle. Property prices in central London are falling faster than at any time since the financial crash, with family homes down as much as 10% in just eight weeks The rental market is fairing little better, with quarterly growth of 0.2% representing the London market’s lowest rise since April 2014. Already investment is heading elsewhere in the UK, with interest from Hong Kong, Singapore and Malaysia is waning. 7 billion reasons to invest in Manchester now Manchester is central to the UK government’s Northern Powerhouse plans, and is set to benefit from £7 billion worth of investment in the coming years. As increased visitor numbers and workers migrate to the city, thanks to new business opening in tax-favourable enterprise zones, the emphasis on accommodation will become even more pronounced. Entering the market at the start of a curve, as proven in London twenty years ago, is pivotal to securing the best returns. s South Afr

Real Estate Investor Magazine South Africa October 2015 | Page 62