Property Prices In Dubai Set To Rise In 2018

Dubai skyline at sunset - Aspen Woolf

It’s that time of year where predictions flood in for the worldwide property market for the next 12 months. This year has been economically uncertain for many regions, due to political and economic uncertainty, but it’s good news for the Dubai property scene, according to industry experts Knight Frank.

Modest Increase In Property Prices

Property Prices In Dubai Set To Rise In 2018 Aspen Woolf

Image credit: Michael Theis via Flickr

While the predicted price increase is modest at 1%, it’s still positive news as Dubai should return to growth, after the recent market cycle showed a weaker performance than average.

Knight Frank say that prices of prime residential property in Dubai should rise in 2018, pointing to a return to growth. The consultants point towards government investment in the infrastructure and economy ahead of Expo2020 as the main reason demand is being driven higher.

Expo 2020 is bringing developments, building projects and more jobs, all of which is helping to strengthen the economy. In addition, it’s increasing demand for residential property in Dubai, as well as commercial, retail and luxury space.

How Dubai Compares To Other Regions

The annual Property Forecast report for 2018 covered 13 cities. According to its analysis, Paris should lead the global price growth for 2018. That’s an increase of 9% in a market that has really struggled to increase prices over the last few years. The expected improvement is due to the benefits from the encouraging economic outlook for the Eurozone.

France’s capital is very much set to be back in the game for global investors, particularly those from Europe and the Middle East.

It looks likely that Singapore (at 5% increase) and Geneva (3% increase) could become next year’s most improved property markets. Market sentiment surrounding Singapore’s luxury residential market is improving. Geneva’s privacy, safety and impressive schools make it a popular spot for wealthy families who want to relocate.

Other Global Regional Forecasts

Property Prices In Dubai Set To Rise In 2018 Aspen Woolf

Image credit: Estatesgazette via Flickr

It looks like Hong Kong will enjoy the strongest growth of the major urban markets in Asia with a 7% increase by the end of 2018. This is due to the continuing demand from mainland China.

Here in the UK, prime prices in London look set to rise by an extremely modest 0.5%, but with a cumulative growth in prices over the next five years reaching 13.1%.

Good News For Dubai

While the growth predicted for Dubai is modest, it’s still extremely encouraging news for investors. With Expo 2020 ever closer, there are more reasons than ever to get involved in property investment in Dubai.

Why Leeds is The Shining Star of Investment Opportunity

Leeds City Centre Birds Eye View

When you think about contemporary, forward-thinking centres of British culture and promise, which city springs to mind?

While most people hone in on London for business, commerce and future-proof investments, those in the know have their sights set on somewhere further up north.

A Contemporary Powerhouse

Leeds is used to shining bright when it comes to moving with the times. It was the centre of the 19th century industrial revolution, the remnants of which can be seen today in the architectural landscape of the city.

The blending of the old and the architecturally advanced is the new shape of Leeds, and the future is bright.

 

Why Leeds is The Shining Star of Investment Opportunity Aspen Woolf

The Fastest Growing City in The UK

By 2027, the economy of Leeds is set to grow by 25%, continuing its trend as the fastest growing city in the UK.

In 2017, its economy is worth £62.5 billion with a population of 3 million. With four universities, various colleges and other higher education establishments, Leeds is young, trendy, vibrant and buzzing. Far from faceless, the city melds its unique heritage with a forward-thinking future plan to produce a melting pot of opportunity.

Key City Then and Now

Historically, Leeds had important transport links, joining the north and the south of a quickly growing new world. Today, its transport links provide easy access for business travellers and visitors to the city.

The council is particularly supportive of the changing face of the city centre landscape, with its weight behind multiple development opportunities. This ability to see the burgeoning opportunity for a developing, sophisticated and cosmopolitan city centre will further propel Leeds into a Europe-leading hub.

 

Why Leeds is The Shining Star of Investment Opportunity Aspen Woolf

Higher Education Investment

Leeds boasts the fourth largest student population in the UK with around 200,000. This population, combined with the young professionals who flood to the city to take advantage of the diverse economy and wide-ranging job market present a huge opportunity for property investment across the board.

Currently there are 16 new developments in progress, which highlights the city as a major hub for investment. The average house price in Leeds has increased by 105% since 2007, and proposals for the South Bank area will signal the largest regeneration the city has seen in more than a hundred years, creating 35,000 financial jobs and over 4,000 homes. It will be one of the largest city centre regeneration initiatives in Europe.

Development and Investment

Almost £4 billion has been invested in these large-scale development projects during the last 10 years. There is £7.3 billion worth of development in the pipeline, including the ambitious South Bank project.

A number of high profile and impressive developments were completed in 2016, which has boosted the commercial space available. The retail completion (596,500 sq ft) is well above the UK average and hotel construction has also increased by 72%.

The high rental growth of the city, along with the wealth of jobs on offer, combines to ensure a promising hub of development investment opportunities now and in the future.

 

If you liked this post, then maybe you would also enjoy Key UK Cities See the Highest Quarterly Price Rise Since 2014 and if you’re ready to start looking, then head over to our property investments in Leeds.

Another 10 Amazing Facts About Manchester

Manchester town hall

Last year we brought you some Impressive Facts About Manchester, one of the key cities in the UK’s Northern Powerhouse. Once known as the Cottonopolis, this historic centre for trade and manufacturing was an engine during the industrial revolution, driving the country forward, and now Manchester is playing a vital part in Britain’s modern economy. But what other curious facts are there to learn about this bustling, Northern metropolis?

 

Another 10 Amazing Facts About Manchester Aspen Woolf

1. First Steam-Powered Mill

In 1783, the first mill using steam power was set up by Richard Arkwright on Miller Street in the city centre. This innovation paved the way for mass production techniques, pushing the industrial revolution forward significantly.

 

Another 10 Amazing Facts About Manchester Aspen Woolf

2. Where’s the Beef?

Manchester is the birthplace of Vegetarianism! The Reverend William Cowherd of the Bible Christian Church in Salford drove the movement, often giving sermons on the virtues of a meat-free diet during the early 1800s.

 

Another 10 Amazing Facts About Manchester Aspen Woolf

3. Scientific Breakthroughs

Not only was the first atom split in the city, but Manchester was also the place where the first law in thermodynamics was discovered by James Prescott Joule in 1850! And in 2010, scientists at the University of Manchester created the world’s thinnest material, graphene, earning themselves the Nobel Prize for Physics!

 

Another 10 Amazing Facts About Manchester Aspen Woolf

4. Exhibitionist!

Manchester played host to the very first international art exhibition, the Art Treasures of Great Britain exhibition in 1857. It was, and remains, the largest art exhibition to be held in the UK, if not the world!

 

Another 10 Amazing Facts About Manchester Aspen Woolf

5. You’ve Got To Fight For Your Rights

In 1903, in her Nelson Street home, Emmeline Pankhurst founded the Women’s Social and Political Union, with the aim of recruiting working class women into the suffragette movement to aid the struggle for the vote. The home still stands and has become the Pankhurst Centre, a heritage and community centre.

 

Another 10 Amazing Facts About Manchester Aspen Woolf

6. Drama Queen

Manchester is the setting and filming location for the world’s longest running TV soap opera, Coronation Street, which was launched in 1960 by Granada Television.

 

Another 10 Amazing Facts About Manchester Aspen Woolf

7. Money Maker

Outside of London, Greater Manchester is the UK’s main centre for the Business, Financial & Professional Services industries. This sector employs 324,000 people and generates £16.2 billion of the region’s GVA annually.

 

Another 10 Amazing Facts About Manchester Aspen Woolf

8. The Home of Football

Manchester not only boasts two of the biggest, most successful football teams in the world – Manchester City and Manchester United – it is also the birthplace of the world’s first professional football league. In 1888, The Football League was created in a meeting at the Royal Hotel, Piccadilly. No wonder the city is also home to the National Football Museum!

 

Another 10 Amazing Facts About Manchester Aspen Woolf

9. Most Liveable UK City

Once again, Manchester is the highest ranking British city in The Economist Intelligence Unit’s Global Liveability Ranking for 2017. The city has come top in the UK for the past six years running, quite the achievement!

 

Another 10 Amazing Facts About Manchester Aspen Woolf

10. Fastest Growing House Prices

Perhaps it’s the city’s high liveability rating that explains the growth in property prices! According to Hometrack’s average house price index, Manchester prices rose by 8.8% in the year up to March 2017, a greater increase than any other city across the country.

 

If you enjoyed this article and would like to learn more about Manchester’s investment potential, try Why Invest in Manchester and Invest in Oxygen: Manchester’s First Vertical Village.

And if you’re ready to begin your investment journey, take a look the properties we currently have available in Manchester.

The UK Private Rental Sector Has Doubled Since the 1990s

There are lots of aspects to making a buy-to-let investment successful.

The UK private rented sector (PRS) has been on an upward trajectory since the 1990s. The number of people relying on rented accommodation has doubled in this time, resulting in one-fifth of all households being owned by private landlords.

These are the findings from the latest English Housing Survey, published on 2 March in relation to the 2015/16 financial year. Overall, it shows there are now 2.5 million more households renting privately than there were at the turn of the century.

There are no signs of this trend slowing down either. A report by Knight Frank anticipates the sector will continue this growth over the next five years, meaning a quarter of all homes are set to be privately rented by 2021.

For investors, this is promising news and shows demand remains strong, especially in buy-to-let hotspots across the UK. If you can source property in a location with high tenancy demand, you’re assured of high occupancy levels and rental income each month.

Contributing Factors

The UK Private Rental Sector Has Doubled Since the 1990s Aspen Woolf

The underlying factor behind the surge in rental reliance is a lack of affordability in the property market, itself augmented by a chronic housing shortage. Combine this with an ageing population and large net migration figures and you’re left with many traditional first-timer buyers stuck for options.

In relation to the younger generation, stagnating wages and rising prices has put home ownership out of reach. Renting is their only viable choice, and not just for the short-term. Knight Frank found that 68% of renters expect to be in the same position in three years’ time, predominantly for financial reasons.

Demographics

The UK Private Rental Sector Has Doubled Since the 1990s Aspen Woolf

The English Housing Survey confirmed these observations. It found younger households are more likely to be renting than owning, not just numerically but proportionally as well. The share of those aged between 25-34 in the PRS has increased from 24% in 2005/06 to 46% now. The same period also witnessed a drop in home ownership by the same age group, falling from 56% to 38%.

Families with dependent children in rented housing has also risen by 6% in this same period. This should encourage prospective landlords as families usually make for consistent, long-term tenants. Also of note is that 787,000 households moved from one privately rented home into another, confirming the notion that many people are unable to break out of the rental cycle.

Buying Considerations

The UK Private Rental Sector Has Doubled Since the 1990s Aspen Woolf

Of course, these positive figures alone won’t make for a successful buy-to-let investment. Location is still key, especially in relation to the thriving student sector, along with expected tenancy demand.

Tenants are also expecting a higher quality standard of accommodation, something the private sector has lagged behind in. Acquiring furnished, energy-efficient properties in a buy-to-let hotspot can therefore be the key to a successful purchase.

One such hotspot is Liverpool. These are the top five postcodes for property investment in Liverpool.
You can take a look at all of our investment opportunities here.

House Prices are Set to Grow by 7% This Year

There is a regional variation in price growth with the north seeing the most growth.

Average UK house prices have remained strong in the first part of 2017 and look set to grow by up to 7% over the course of the year. The market has shrugged off the potential repercussions of Brexit and is performing better than was expected a few months ago.

The findings come from the latest Hometrack survey, who themselves predicted average rises of just 4% back in December 2016. What this shows is a sustained confidence in the sector, fuelled by an undersupply of homes and robust house price growth in large regional cities.

House Prices are Set to Grow by 7% This Year Aspen Woolf

Hometrack Survey

Hometrack are a property analytics service that examines the performance of 20 cities across the UK. They gather data from numerous sources and explore various trends relating to expected price. The latest June survey showed an annual growth rate of 5.1% to June 2017, with encouraging signs for the rest of 2017 and beyond.

The Research and Insight Director at Hometrack, Richard Donnell, has noted:

“… the headline rate of city house price inflation is holding up, despite the squeeze on real incomes and uncertainty around Brexit. The Brexit impact was greatest over the second half of 2016 but house price growth has picked up over the last six months. This is consistent with an 11% increase in the number of home purchase mortgages, which is also 5% higher than the five-year average.”

House Prices are Set to Grow by 7% This Year Aspen Woolf

Regional Variation

The expected growth was driven by the strong display of particular regions, notably those outside of the capital. Birmingham experienced the highest growth from a year ago (7.8%), with Edinburgh (6.5%) and Manchester (6.4%) also performing well.

House price growth in London declined by 2.6% – its lowest level for more than five years. Oxford, Bristol and Cambridge have also gone through a notable slowdown, whilst Aberdeen is the only city in the Hometrack survey to experience a decline from 12 months previous (-2.7%).

However, in the past 3 months alone, all but one of the 20 cities experienced positive growth. As Donnell pointed out, Brexit fears have been brushed aside and on current trends, 2017 growth is set to hit 6-7% on average.

House Prices are Set to Grow by 7% This Year Aspen Woolf

In parts of the Midlands and the North-West, positive trends are expected to continue into 2018 as prices are rising from a lower base. Low interest rates and falling unemployment are further indications of this sustainability.

Here is some selected data from the June survey:

CityAv. House PriceYearly Rise
Birmingham£154,9007.8%
Bristol£270,9005.6%
Edinburgh£211,1006.5%
Leeds£161,4005.4%
Liverpool£118,3004.8%
London£492,7002.6%
Manchester£155,7006.4%
Nottingham£146,0006%
Oxford£424,8002.1%
Sheffield£133,7004.7%

The Hometrack report comes ahead of expected gains in UK property over the next five years. According to the Centre for Economics and Business Research (Cebr), house prices are set to jump by over £50,000 by 2021, accelerating especially from 2019 onwards.

Now is a great time to invest in property, whatever your age. We’ve put together everything Millennials need to know about investing in property.
Whether you’re a Millennial or not, if you’re interested in finding out more, get in touch for a chat.

Commuter Town Luton To See Vast Improvements to Rail and Air Travel Access

Luton is a popular commuter town just outside the London bubble.

A £200 million rail link between Luton Parkway train station and Luton Airport has received planning permission from the local council. Set to open by mid-2021, the 1.4 mile line will reduce journey times and save travellers from relying on the existing bus shuttle service.

The move comes as part of a major redevelopment to the airport hub, including renovation of the terminal layout and surrounding roads. It comes ahead of an expected 3.5 million passenger increase over the next four years.

Commuter Town Luton To See Vast Improvements to Rail and Air Travel Access Aspen Woolf

Image credit: Matt Buck via Flickr

Specifications

Although at an early planning stage, details of the new railway link have already been revealed:

  • The system will be fully automated and driverless.
  • It will operate 24 hours a day, seven days a week.
  • The new Airport station will be located at Bartlett Square.
  • The route will be elevated and will run south, parallel to the existing rail line, until it reaches the A1081 where it will cross the A1081 (Airport Way) via a new ‘Gateway Bridge’.
  • The onward route is proposed to run alongside the A1081 Airport Parkway.
  • It will use a Mass Passenger Transit (MPT) system.
  • Journey times from London could be reduced to 30 minutes, with Parkway/Airport transfers to around 5 minutes.

A contractor has not yet been appointed, although the Airport has put out invitations for bids up to £115 million. A decision is set to be made by October. Engineering firm Arup have already been commissioned to design the MPT link and oversee initial construction contracts.

Commuter Town Luton To See Vast Improvements to Rail and Air Travel Access Aspen Woolf

Image credit: Håkan Dahlström via Flickr

Council Decision

Luton Borough Council made the final decision in June, voting unanimously to give the green light. Chair of planning at Luton Borough Council, Dave Taylor, has said of project:

“It’s an exciting development which will enhance the passenger experience at Luton. It was approved by all three parties on the council, unanimously, because the airport is a success story for the town and this improves the accessibility to it.”

Commuter Town Luton To See Vast Improvements to Rail and Air Travel Access Aspen Woolf

Image credit: Steintec via Flickr

The Airport believes its expected growth will raise economic output from £1.3 billion to £2.3 billion and create over 10,000 new jobs over the next 15 years. Chair of London Luton Airport, Andy Malcolm, noted:

“Luton is the fastest growing airport in the UK and enjoys excellent road links to London and the North while Luton Airport Parkway also gives excellent rail connectivity to the capital and the Midlands.

“The scheme we are announcing today will provide a seamless five-minute transfer time between Parkway station and the airport terminal. A total journey time of less than 30 minutes from St Pancras to the airport will beat the time from Liverpool Street to Stansted by 20 minutes and better the time from Victoria to Gatwick too.”

Increased regeneration of Luton’s renowned transport links is great news for the commuter town, boosting the local economy, creating jobs and enhancing the property market. It comes after Lendinvest recently named Luton the most profitable destination in the UK for buy-to-let investment.

If you’re interested in investing in Luton, check out our opportunities here.

The Dubai Property Boom is Coming

Foreign investment in Dubai property has seen record levels in 2017.

Dubai offers one of the most exciting investment opportunities in the world. It’s property sector is currently experiencing an exciting growth cycle, signalling a boom that’s expected to last until the hosting of Expo 2020.

Early 2017 performance has indicated this surge may already be on its way. The Dubai Land Department’s transactions report up to 30 June shows transaction growth has increased by over 25% compared to the same period last year.

UAE Economy

The Dubai Property Boom is Coming Aspen Woolf

Image credit: ANDY ARCIGA via Flickr

The UAE has long relied on the fortune of the oil industry to drive growth. However, indications are showing this is set to change as the economy seeks to diversify away from its primary commodity. The oil sector now makes up for less than 1 per cent of Dubai’s GDP.

This is great news for the Dubai property sector, showing it can stand on its own two feet. The Emirate has instead become an appealing destination due to its thriving tourism, real estate and construction industries. Similarly, smart infrastructure and city planning combined with a more tolerant culture has helped Dubai welcome visitors and investors of all nationalities.

The stable overall economy of the UAE is another positive appeal. The local Dubai economy improved at a faster rate (2.85%) than average GDP growth of 2.4% globally. Other good news is that the UAE dirham is pegged to the US dollar which is currently unaffected by currency fluctuations.

As noted, Dubai will also serve as host of Expo 2020, a proven catalyst of major economic activity over a number of sectors. Buy-to-let will greatly benefit in particular, with over 25 million unique visitors expected over a six-month period.

Foreign Investment

The Dubai Property Boom is Coming Aspen Woolf

Image credit: Maher Najm via Flickr

2017 has witnessed a positive surge of overseas investments, notably from wealthy Saudi, Indian and Chinese property magnates. Sales of around £2.51 billion were completed during the first two weeks of the year alone – a record figure for Dubai and a reliable indicator of the positive growth in the months since.

UK investors should take note. Acquiring foreign property is the perfect way to diversify your portfolio and mitigate risks. Dubai is currently offering more value than rival markets in Singapore and Hong Kong. Lower entry prices provide healthier rental yields on your initial investment.

Dubai is noted for its buyer-friendly conditions, especially in relation to taxes. There is a 100% exemption on rental income and capital appreciation, as well as no income tax to pay. However, it’s advised to seek professional advice regarding the UAE’s tax regulations before making a property purchase.

Increased Supply

The Dubai Property Boom is Coming Aspen Woolf

Image credit: Michael Theis via Flickr

One reason for the expected boom is increased residential supply. Property consultants Cavendish Maxwell expect over 30,000 homes to be added to the Dubai market by the first quarter of 2018, the majority being apartments.

More activity and gains are expected after Cityscape in September, a three-day exhibition bringing together Dubai’s leading real estate developers, financiers, investors and construction experts.

This is great news for prospective investors, showing the confidence developers have for buying appetite. However, Ivana Vucinic of Chestertons Mena has advised for investors to act relatively quickly before the boom inflates buying costs. She expects prices and rents to remain fairly flat until the year end.

You can find out more about our investment opportunities in Dubai here, or contact us for a chat.
For more reasons to invest in Dubai, take a look at how Dubai’s rental yields are higher than London, Singapore and Hong Kong.

Invest in Oxygen: Manchester’s First Vertical Village

Oxygen Tower will be located near excellent transport links in the city centre.

Construction is underway of Manchester’s ground-breaking ‘vertical village’ – set to be known as Oxygen Tower. Located near to Piccadilly Station, the 375,825 ft² construction will be one of the most complex and impressive high-rise projects in Manchester.

Invest in Oxygen: Manchester's First Vertical Village Aspen Woolf

The developers, Property Alliance Group, have commissioned building specialists Russells Construction and designers 5Plus Architects for the £100 million residential development. Set for completion in 2018, it will eventually comprise 345 luxury apartments and 12 family townhouses.

A sales launch has already taken place, with Oxygen proving extremely popular with prospective buyers. There are still opportunities for both residential and buy-to-let investors however, so feel free to get in touch for more information on this exciting investment.

Invest in Oxygen: Manchester's First Vertical Village Aspen Woolf

Building Details

Oxygen will manifest as three connected blocks, with the tallest being an impressive 31-storeys high. These will include one, two and three-bedroom apartments, with the luxury townhouses on ground level. Ninety-one car parking spaces will be available in the basement.

The tag of Manchester’s first ‘vertical village’ comes from the various leisure facilities set to be included on-site. Along with a 24/7 concierge and rooftop garden terrace, inhabitants will also have access to a communal gym, spa, swimming pool and cinema room.

The development director of Alliance, Gareth Russell, has noted these facilities have been a major enticement for potential buyers. He said:

As Manchester’s first vertical village, the development will provide residents with a variety of luxury homes as well as amenities and services that will create a sustainable and thriving community.

With a roof garden, allotments and spa it will create a sociable environment and lifestyle that will appeal to both young professionals and families looking to rent or buy.”

Invest in Oxygen: Manchester's First Vertical Village Aspen Woolf

Further Information

The project lies on Store Street, just off Great Ancoats Street, which places it within walking distance of some of Manchester’s prime areas. Not only is Piccadilly Station close by, but you’re also not far from the Northern Quarter, Oxford Road, Market Street and the Arndale Centre.

In terms of design, every Oxygen apartment and townhouse will be finished to ultra-modern standards. Although specific details have not been revealed yet, full height windows and balconies will be a feature of each room.

The three towers will descend in height, from 31-storeys down to 15 and nine respectively, connected by a visible lift and stair cores. Underneath, the basement car park will hold 91 spaces for cars and 175 for bicycles.

A residential breakdown is as follows:

  • One-bedroom apartments – 190 units – £220,000 starting price
  • Two-bedroom apartments – 236 units – £292,000 starting price
  • Family townhouses – 12 units – £510,000 starting price

At time of writing, the Oxygen development is expected to be ready for completion at the back end of 2018. Capital growth of 15% in that time is anticipated, with rental yields expected to reach 6%. If you’d like any more information on this exciting investment opportunity in Manchester, feel free to get in touch with us today.

You can find out more about Oxygen here.
For more information about Manchester, take a look at Why Invest in Manchester.

What Millennials Need to Know About Investing in Property

Millenials and UK property investment

Although millennials are known to be more conscious about their money and savings, they’re not as prepared when it comes to future investments. A report by Bankrate revealed that 39% said cash is their preferred investment over stocks and property. However, experts suggest they are approaching it all wrong in terms of their future, as this age group (21-37 years-old) has the biggest retirement savings burden.

“The preference for cash and aversion to the stock market among young adults is very troubling,” said Bankrate chief financial analyst Greg McBride. “They won’t get there without being willing to assume a little short-term price risk in their long-term money.” 

The housing market is one of the most ideal long-term investments for millennials, as their age gives them enough time to put money into it and further expand it. Although, it can be overwhelming to start off, especially for those who are still carrying the load of previous debts such as student loans.

Therefore, with that in mind, here is a quick guide on how millennials can start to invest in the housing market.

 
What Millennials Need to Know About Investing in Property Aspen Woolf

It’s The Best Investment

Why would someone want to purchase a property if they are not willing to live in it? Yes, some investors look at investing in a house as a way to resell land or a house for a higher price, for various reasons. First, property investment pays a fair cash-on-cash return. When buying property, if you have the option, the best thing to do is to take some money out of liquid financial assets (bonds, stocks), then invest it in housing. This earns a 4% to 6% rate of return on the financial assets.

However, investors need to strive to earn a fair cash-on-cash rate of return on the property by purchasing cash flow-positive real estate that earn decent returns. In addition, investing in housing has been found to be less risky if investors own the property. However, it’s highly recommended that you get a good management company to help you look after the tenants as if not it can become rather problematic.

 
What Millennials Need to Know About Investing in Property Aspen Woolf

The Economy Plays An Important Part

Just like the price of basic commodities, the economic status of a country greatly affects the value of housing, whether it’s land or a built property. Thus, millennials need to understand the economic indicators that affect the UK economy. If someone is interested in gathering data about a certain topic, they can always visit the World Bank’s website and look up information they need there.

The Gross Domestic Product is the most traditional way of measuring the economy of a country, but the UK has more economic indicators than their GDP, such as:

  • GDP per capita
  • Labour market statistics
  • Inflation measures
  • Household expenditure
  • Retail sales
  • Consumer confidence
  • Balance of trade and payments
  • Benchmark interest rate
  • Public sector finances

The aforementioned article on the market insights section of FXCM suggests the ‘Halifax House Price Index’ should give you an idea about the standard and price series of housing cost information per region in the country.

“Housing prices in this index, which derives its name from a major mortgage lender, compare values on a quarterly basis in order to smooth out short-term price fluctuations,” the article stated.

There’s no doubt that now is the most ideal time to put your money in housing. Why? Mortgage interest rates are currently very low, motivating individuals that much more to purchase homes and investment properties.

 
What Millennials Need to Know About Investing in Property Aspen Woolf

Now Is The Best Time To Invest

There’s no doubt that now is the most ideal time to put your money into property. Why? Mortgage interest rates are currently at an all-time low, proving potential opportunities for first time buyers to purchase their first home at fantastic fixed term rates.

However, what’s important is that if you do have property, don’t make the mistake of borrowing from its equity. If you borrow from the equity of your house it could put it in danger, depending on the state of the housing market. A home equity loan, after all, is backed by your property and if you find yourself unable to make the payments, there’s the possibility that you could lose your home, something that you’ve no doubt saved a considerable amount to make a reality. This shouldn’t apply too much to millennials, but is definitely something worth noting.

Additionally, there has been an alarming number of recent foreclosures across the UK, providing millennials with the opportunity to invest in rental properties without the burden of having to repay mortgage payments. Millennials can do this by forming single or limited partnerships known in the housing market as investing as “syndication” or through “rent to buy schemes”.

There are benefits and shortcomings to both, and this article on AOL has more on the issue. It also shows how it’s imperative to do your research before committing to an investment regardless of how big or small it may be.

Lastly, The Telegraph stated that short sale markets in many locations have created great investment opportunities in getting non-foreclosure homes at a great price.  The article cites an example in Truro, Cornwall, where people can invest in 3-bedroom Victorian terraces for the same price as buyers were paying in 2006.

 

If you’re looking to start building on a property investment portfolio, why not check out at all the property investment options we have on offer or alternatively contact us for help on taking your first step onto the property ladder.

Luton: The Top Commuter Town for Property Investment

London Luton, a hotspot commuter town

Luton is a town with historic routes, famed for its mention in a notable Campari advert. But it has long been overlooked as a place with big potential for property investment. However, this is set to change. Recently the town has undergone a massive amount of regeneration and investment. And when you consider its ideal location and excellent transport links, you’ll start to understand this commuter town’s growing appeal amongst property investors.

 

Recent Large Scale Investment

In 2016, Luton launched a £1.5billion investment programme, with major companies committing to funding, and projects that are set to transform Luton into one of the UK economy’s major players.

The Luton Investment Framework is a 20-year plan launched by the town’s local authority. Eight sites for major strategic development have been earmarked for new leisure, retail, and housing opportunities alongside areas designed to boost employment in the creative, technology, engineering and aviation industries. The goal of the framework is to enhance growth, health, wellbeing and prosperity for local people by transforming major areas of Luton and creating more than 18,500 jobs.

 

Luton: The Top Commuter Town for Property Investment Aspen Woolf

 

The scheme includes plans such as London Luton Airport’s £260million new passenger transit system, aimed at making movement between the airport terminal and Luton Airport Parkway railway station more efficient for staff and travellers by reducing journey times. A further £110million redevelopment of the airport itself was also announced, with the aim of raising annual capacity from 12 to 18 million by 2020 – an increase of 50 per cent!

Companies are seeing the potential of Luton as a hub for business and commerce, from Signature Flight Support, who pledged £26million towards the programme, and Capital &Regional (owners of the impressive The Mall shopping centre) who announced their large redevelopment plans.

Even Luton Town Football Club is getting in on the action! The company behind the club, 2020 Developments, is looking to build a new football stadium.
Luton has also secured £1.5 million funding for the Arts Council to develop the arts and cultural infrastructure within the town.

All of this is sure to drive up the number of young professionals looking to live and work in the town, transforming Luton into a centre for high-quality jobs.

 

Luton: The Top Commuter Town for Property Investment Aspen Woolf

Excellent Transport Links

It is well-known that Luton is a short 20-odd minute train ride from London, as well as being home to one of the UK’s major capital airports, London Luton Airport. This already makes the town an ideal location for workers looking to commute into London.

But with so much investment planned for Luton’s transport infrastructure comes the promise of even greater lifestyle and business benefits.

Thanks to the new transit system between the airport’s terminal and Luton Parkway rail station, journey times into central London from the terminal itself will be reduced to 30 minutes by 2020 – quicker than the journey times from Gatwick and Stansted!

The airport itself is currently the UK’s fastest growing airport. Over the next 20 years, London Luton Airport will undergo a series of developments, increasing capacity and creating thousands of new jobs.

Luton also sits alongside the M1 motorway, with the A6 originating in the town. These two major roads connect London, Leeds, and Manchester respectively, providing a vital link from the south of the country to the north.

 

Luton: The Top Commuter Town for Property Investment Aspen Woolf

Strong Growth in Property Values and Rental

In 2014, Rightmove and Oxford Economics predicted that prices in Luton would grow by 41% over the following five years. And it seems they were right, with house prices having risen nearly 30% on average in the last two and a half years! Much of that growth has happened in the last year, with property values increasing by 19.4% in 2016. That meant as much as £42,000 was added to the price of local properties. And there’s no sign of this trend stopping any time soon – welcome news for investors looking for the best options for capital appreciation. In fact, this massive surge in the local property market saw Luton become the top-performing town for house price growth in the UK for 2016.

Meanwhile the rental market in the town is also looking healthy. Rents have increased by 4.23% in Luton in a year, whereas in London they have actually fallen by 1.05%. But given the difference in average rents in the respective areas, Luton still represents the cheaper option for many city workers. This means landlords in Luton benefit from a growing demand for housing there, whilst achieving better yields than their London contemporaries.

The mix of great schools, blossoming arts scene and the popular cultural event that is Luton Carnival make the town increasingly attractive to families and city workers alike. And with so much investment in the town, the council is aiming to continue to improve Luton’s liveability factor.

 

All of these factors mean Luton is now becoming a fast favourite of savvy property investors, offering a stable income, great capital growth, and a fantastic return on investment.

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