Thirlmere Deacon Property Investment Magazine Issue #4 January 2021

Issue number 4, Q1 2021

content

Market Movement Over Q4

Newcastle Central

Construction Updates

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2021 Developments Q1

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Team round up: 2020 and how investors should be investing in 2021

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Newcastle Central Profile

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Market Movement Over Q4 4

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OCTOBER

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UK mortgages hit 13 yearhigh but consumers curb other borrowing:

Rent levels - London drops but most regions still rising:

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ritish mortgage approvals hit their highest in almost 13

years in August, underscoring the

he latest monthly rental index produced by insurance

provider HomeLet shows a four

scale of the post-lockdown

per cent surge in the all-UK

bounce-back in the housing

average rent over just three

market, but consumers turned

months, but big differences across

more cautious about day-to-day

different regions.

borrowing, Bank of England data showed.

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Read more.

Read more.

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More Brits invest in holiday homes across UK:

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rits are investing in their own staycation spaces at a record-

breaking pace, ahead of the autumn and winter months, according to holiday home operator Park Leisure.

YouGov data shows that over three quarters of Brits (77%) have no intention of travelling abroad this year. In fact, 43% say they intend to take more or the same number of UK trips than they usually would.

Tenant demand hits four-year high:

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Read more.

ew research carried out on behalf of Paragon Bank has

revealed that during Q3 tenant demand hit a four-year high, with landlords in the North West and South West reporting the strongest levels of growth.

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Read more.

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Act fast or you may miss stamp duty deadline, homebuyers warned:

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evere delays” and a “large backlog” in home sales

may result in people missing out on the stamp duty holiday.

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Read more.

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NOVEMBER

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House price growth rises to 5.8%:

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early house price growth increased to 5.8% in the year to

October 2020, Nationwide’s House Price Index has found. This represents an increase from the 5.0% growth in September 2020. Monthly price growth has slowed from 0.9% between August and September to 0.8% between September and October.

Tenant demand surges in the west of England:

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Read more.

enant demand rose in North West and South West in Q3 2020,

according to 44% of landlords. A sizable proportion also reported rising tenant interest in the East Midlands (40%), South East (except London, 38%), the North East and Yorkshire and the Humber (both 38%), Leeds Building Society research shows.

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Read more.

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ast month average rents in Britain rose for the first

time since the start of the first lockdown, up 1.4% year-on-year to ÂŁ1,041 per month.

Read more.

Housing market set for busiest Christmas in more than a decade:

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Rents in Great Britain rise for the first time since March 2020:

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he property market is set to have its busiest pre-Christmas run-up in

more than a decade, as buyers rush to complete before the stamp duty holiday ends in March.

Read more.

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DECEMBER

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Stamp duty holiday ‘stampede’ drives soaring UK mortgage market:

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“mad stampede” to buy houses before the stamp duty holiday

ends drove UK mortgage approvals in October to the highest level since 2007, defying surging unemployment and an economic downturn.

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Read more.

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Average UK property values expected to increase by 2% in 2021:

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rovided that the stamp-dutyholiday is not extended and

some degree of normality follows the rollout of a UK wide vaccine next year, average UK house prices should expect a marginal uplift of around 2% in 2021.

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Read more.

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Construction Updates 26

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Redditch Residences

Our Redditch Residences development is still on hold and should be back to full capacity as restrictions naturally loosen.

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Wolverhampton Residences

Situated on the fringe of

In addition, the plasterboard

connection with the domestic hot

This is situated on the side

Wolverhampton City Centre,

sheets have now been fitted

and cold water supplies.

elevation and this along with

our Wolverhampton Residences

to one side of the metal stud

development sees continued

work, which will allow the metal

At the same time electricians

installation of the new windows

progress, albeit with a reduced

ceiling grid to be formed in each

have been working on their 1st

which have now been ordered and

team on site.

apartment and we’re also pleased

fix stage and such works have

ready for installation

to report that the metalwork

successfully completed on the

the coming weeks.

Working from the top down,

which forms the internal walls

apartments across the top floor

the top 3 floors have now had

for the kitchen/dining rooms,

now, before they move down to

The reduced team of operatives

the lightweight metal studding

bedrooms and bathrooms, have all

the next level.

on site will continue through

installed to prepare for the

been built with plasterboard to

partitions of apartments as per

one side.

the project plans. Operatives are

the scaffolding will support the

the December month and we’re To the exterior of the building,

advised that like other schemes,

scaffolding has been erected

capacity will be increased from

currently working on the second

A team of plumbers were recently

around the perimeter and also

the new year with further numbers

floor forming the partitions to

placed back onsite and they have

incorporates the hoist to assist

being allowed back to accelerate

these units.

now carried out the 1st fix to

with loading materials in and

the progress thereafter.

all units on the top 2 floors in

waste out of the development.

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Preston Central Apartments

In Preston, our city centre

team of dry liners carrying

development consisting of

out the initial partitioning.

70 brand new apartments has

Scaffolding has recently been

seen continued progress in

erected on 2 rear elevations

recent months.

of the building, along with the hoist now in position to

COVID-19 restrictions have

facilitate loading materials up

meant a reduced team of 10

to the upper floors.

operatives have been working on site and at the turn of

The developer has also

the year, the developer looks

recently introduced a team

forward to introducing an

of plumbers who have started

enhanced team of dry liners,

the 1st fix stage on the top 2

plumbers and electricians,

floors, ensuring drainage and

accelerating the build on

supply is installed into the

the way to its scheduled

buildings water infrastructure.

completion in Q1 2022.

Two eagerly awaited new Last month saw the team

show flats will be presented

reach a completely stripped

at the development during

out building, ready for

2021, these two apartments

significant construction to

have now been formed on the

commence and the start of

ground floor and currently

the apartments being formed

undergoing their 1st fix

on the top floor.

mechanically and the electrical

Forming of the 2nd and 3rd

1st fix due in these show flats

floor apartments have now

within the next week.

also commenced, with a

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Regent Plaza

Since the last period, the

now the Principal Contractor, have

installation of the decking and

commenced cleaning down the

edge trims has been completed.

steelwork and preparing beams

All decks shear studs have been

and columns, from Level 1 up, for

welded to top of the beams and

intumescent paint to be applied

concrete poured from Levels 1 to

week commencing 30 November

Level 6 and Level 9.

2020.

Evadx have returned to site and

Excavation has commenced in the

addressed their snagging of the

footprint of Block C for geogrid

steelwork frame, including bolts

reinforcement to be installed

and touching up..

before granular material is laid

Design work for Block C piles is

and compacted to required ground

underway to confirm the proposed

capacity.

piles diameter. Intumescent

Foundation for a sample panel is

paint has been delivered to site

being poured and the steelwork

for painting to commence on 1

support delivered to site.

December 2020.

Samples, for proposed brickslip

Structural framing system, for

system, have been ordered and

the inner leaf of the cavity

are due on site first week of

walls, has been delivered to site

December 2020 for presentation

for installation to begin on 7

and signing off by Salford City

December 2020.

Council Planning Department.

SMD are laying the remaining roof deck, to Phase 2 of the steelwork frame, and completing preparation work to Levels 7 and 8 for the concrete to be poured.

Swanside Group Limited, who are

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Natex Block A The Steel frame of the roof is

1st fix M&E installation

now being erected

progressed well to levels 1 and 2 The site continues to work under

The intumescent painting has

social distancing measures which

continued to the upper levels

are working well.

Mast climbers and hoists continue

Block B

to operate feeding the floor plates Structural steelwork continues to Pods have been delivered and

be erected to block B

installed to levels 3 and 7 The decking continues to be The SFS has continued with stud

loaded out and installed up to

work and now installed to level 9

level 6

and 10 The boarding is now installed up

Concrete floors have been poured

to level 8

into the first half of the building, levels 1 - 5

Windows have now been installed up to level 6 and glass has been

J-Safe edge protection is being

installed progressively

progressively installed as the frame progresses

Partitions are now 1st fixed to

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levels 1 and 2 with levels 3 – 4 on

Mastclimber bases have been

going

installed

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Developments Available Q1 38

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Newcastle Central Apartments

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Price from £145,000

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Due for completion Q3 2022

•

10% discount off market prices

•

8% gross assured rental yield for

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10 years •

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3% interest on all deposits

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ocated in the very centre

track record. As with all the

of Newcastle at one of the

developments we propose to

city’s most exciting locations

our clients the property and the

which is currently in the throes

location have been carefully

of considerable regeneration, this

considered and fully vetted by our

prestigious apartment building

team. Originally built as an office

is ideally located for those

development, it is now the subject

working or studying in the city,

of a visionary multi-million-pound

within walking distance of train

conversion scheme that will create

stations, shopping centres, several

152 top-quality apartments.

hospitals and under 1km from both of the city’s universities.

This development will easily be one of the finest in the city and is being completed by a developer who has an impressive

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Preston Central Apartments

• From £127,000 • City centre location • 8% gross rental assurance for 10 years • Experienced developer

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• Experienced management company

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P

reston Central Apartments

is on track to surpass ÂŁ10bn by

is a prestigious residential

our scheduled completion date.

development situated on the

Voted the best place to live and

picturesque Winkley Square

work in 2018 by Good Growth

in the very heart of Preston.

for Cities Index, Preston is

Planning permission was granted

becoming increasingly sought

in May 2020 to convert this

after by professionals, and our

former office space into a luxury

project is directly on Winckley

apartment building and works are

Square, arguably Preston’s most

already underway at the 70 unit

prestigious address and one of the

development which is on track to

most popular postcodes in the UK.

complete in Q1 2022.

As a city, Preston boasts some of the highest employment rates in the UK, and the local economy

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Regent Plaza

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From £175,959

• Location highly in demand • Completion Q4 2022 • 7% gross return guaranteed for the first 2 years

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• Experienced developer • Experienced management company

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ocated in Manchester,

The development, which will be

one of the UK’s largest

built in a phased program of 5

economies and the most

unique blocks, is set to change

established investment location

the city’s skyline and will have

outside of London; Regent Plaza

resident benefits such as a 24-

is an impressive residential

hour concierge, podium level

development on the edge of the

gardens along with a residents

city centre.

lounge and gym.

Demand for properties such as

We have a number of incentives

those at Regent Plaza is high;

available to investors at Regent

Manchester’s workforce is

Plaza, please get in touch to find

continuously growing with large

out the latest.

numbers of professionals both from other UK locations and overseas relocating to the city year on year.

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Liv Lodges

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aking a ‘staycation’ has never

Liv Lodges is a collection of

been more popular and in

holiday investment properties

increasing numbers, investors

in idyllic locations across

are turning to holiday property

Britain which are set to offer

investment due to the potential

investors incredible rental

for impressive rental returns.

returns each year.

The combination of the growing

Prices from £109,990 with

trend for UK residents choosing

8% rental assurance and

to visit other parts of the country

furnished holiday

on their holidays rather than

let tax breaks.

travel abroad and the steady rise in the number of tourists visiting the country each year – now is an ideal time to consider investing in a holiday property.

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Sheffield Student

• From £75,000 • City centre location next to Sheffield Hallam University • 7.5% NET rental assurance for 5 years • 24 hour security and reception

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• Impressive onsite facilities including a fully equipped gym, coffee shop, dedicated group studying areas and quiet areas

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I

nvestors now have the

international students choosing to

opportunity to purchase a

study in the UK has increased – they

property within an impressive,

now make up almost 20% of the total

high-end purpose-built student

number of students.

accommodation in Sheffield city centre, in the heart of Sheffield

International students are known to

Hallam University campus.

have a preference for high-quality self-contained accommodation

Part of an impressive broader

seeking security and comfort whilst

ÂŁ220million regeneration project

studying abroad. The UK government

the development aims to offer

has predicted that the number of

facilities which enable a new

international students attending

way of learning, working and

universities in the UK will increase by

researching in Sheffield.

around 20% over the next 5 years.

With over 60,000 students

Not only is the development ideally

in the city, there is a strong

located for Sheffield Hallam

demand for accommodation.

University but the University of

Notably, in Sheffield there

Sheffield, which is a member of the

is a lack of modern purpose-

elite Russell Group and is ranked

built accommodation, there are

13th in the UK out of around 150

currently no luxury options

higher education establishments in the

for students.

country, is within walking distance, or a short bus trip away.

The demand for luxury student accommodation has grown in recent years as the number of

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Wardour Point M

anchester continues

Featuring a total of 183

to be one of the

apartments arranged over 25

most exciting prospects for

floors, there are one, two and

investors though where and

three-bedroom apartments

what you buy in the city will

and several duplex apartments

determine the long term

available to purchase.

success of your purchase. City centre properties are proven

Designed with modern living

to offer the best opportunity

in mind each of the luxury

for capital growth, rental

apartments has been carefully

price growth and have the

arranged with spacious, light-

strongest tenant demand.

filled rooms that are ideal for working from home and will be

Located in the very heart

completed with high specification

of Manchester in the city’s

fittings and features to appeal to

emerging creative quarter,

professional tenants.

between the city centre and Media City, this stunning

The building also boasts many on-

residential development

site facilities including an on-site

offers residents a place to not

gym, residents lounge, a concierge

only live but to work and play

service and beautifully landscaped

too cementing the appeal to

gardens. Creating community

tenants by creating a place

spaces for all the residents to

they can call home.

enjoy the gardens will include

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communal growing beds for residents to grow their own produce and recreational spaces for playing including table tennis and table football.

Positioned on Regent Road, the development is ideally located near to the city centre whilst also offering easy access to Media City and Salford. Many retail and dining outlets are within walking distance, the University of Salford is around 10 minutes’ walk away and Piccadilly Station, which is to be the Manchester terminal for HS2, is 1.9 miles from the property.

Prices from ÂŁ140,000 with a projected 6% rental yield. Incentives available including up to ÂŁ20,000 stamp duty contribution.

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2020 Team Review

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Review of 2020 F

ollowing the decisive election result in mid December 2019,

the beginning of 2020 started well with the markets booming, the economy in a strong position and a large amount of inward investment - dubbed the ‘Boris Bounce’.

The pandemic knocked the wind out of our sails, not helped by the media’s scaremongering quoting unfounded figures with no evidence to support their claims that unemployment would skyrocket, property prices crash and the UK economy, in general, would tank.

Now looking back at the year and the end net position it’s confirmed that prices haven’t dropped an in fact have risen throughout the year by 5.4% according to Land Registry. Things have changed, the economic 64

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conditions have shifted but overall

Oliver Mohsen-Taheri, Senior

the UK remains to be in good

Investment Consultant at TD,

shape, it continues to represent a

believes the undersupply gives

safe haven for investors.

investors an opportunity; “when you’ve got a supply and demand imbalance, it can force prices

One element that has been

upwards, and that’s what we’re

unavoidably impacted is

seeing and that’s what I believe

construction. Due to lockdown

we will continue to see over the

many sites were closed and

next three or four years.”

the supply of materials was interrupted - building and development has been disrupted and delayed meaning the UK will not achieve or be near to its target for properties built within the year.

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What’s ahead for 2021?

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ooking forward to 2021 there is an overall optimistic

feeling, yes there will be change and continued scaremongering in the press but by keeping a level head and a clear strategy the team at Thirlmere Deacon firmly believe investors can add some excellent properties to their portfolios.

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Location has been key during 2020 and this theme will continue into 2021. Demand has been shifting away from London for some time, this year the number of relocations skyrocketed in a trend that’s set to continue.

Large cities away from the capital have seen increased interest but there are other locations that are well worth considering that can offer better value for money and exciting prospects.

Senior Portfolio Manager, Nichola Harrison says “Many of my investors have got their Birmingham’s, and Manchester’s, their Liverpool’s, but they haven’t yet explored those commuter cities and those commuter towns that surround those large areas.

So going into 2021, what I’ll be working with my investors is on expanding and diversifying their portfolios.”

Together with having a diverse portfolio, successful investors will recognise the importance of purchasing property with a longterm view.

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Senior Investment

Though there’s no crystal

Consultant, Owen Moores

ball discerning buyers can

says “If your are looking

confidently make well-

at buying a property, first

informed purchases with the

consider where is this

guidance of an experienced

property going to be in 5-10

investment consultant.

years. Aim to double the

“There’s always going to be

value and triple the rent.”

opportunities.” Oliver says, “ There’s always going to be

In agreement with Owen,

money to be made.”

TD CEO & Founder Stuart Williams says “most mistakes are made in the property

The fact remains that people

market when you’re trying to

will always need a place to

hit a goal over a short-term

live. “So keep looking up,

period. If you’re trying to get

stay positive, stay calm, and

things turned around quickly,

keep looking forward.” Stuart

you’re in the lap of the gods.

concludes.

I’ve said this once or twice before. It’s about looking long-term. Whenever buying property, you should look five, eight, 10 years down the road, at least.”

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Property Feature 74

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Newcastle Central Located in the very centre of Newcastle at one of the city’s most exciting locations which is currently in the throes of considerable regeneration, this prestigious apartment building is ideally located for those working or studying in the city, within walking distance of train stations, shopping centres, several hospitals and under 1km from both of the city’s universities.

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his development will easily be one of the finest in the

city and is being completed by a developer who has an impressive track record. As with all the developments we propose to our clients the property and the location have been carefully considered and fully vetted by our team. Originally built as an office development, it is now the subject of a visionary multi-million-pound

The seven-story building features its own undercroft parking and, as part of the conversion, the exterior will be transformed, fitted with stinking new glazing and entranceways. Similarly, the interior is being stripped out and replaced with beautiful one and two-bedroom residential units all of which are being built to the latest standards for safety, security and energy efficiency.

conversion scheme that will create 152 top-quality apartments.

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Key Investment Highlights

Price from ÂŁ139,750 Number of units in the development: 152 Due for completion Q3 2022 10% discount off market prices 8% gross rental yield for 10 years.

3% interest on all deposits New build warranty in place Developed by Empire Property Concepts

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The Finish

General Smooth plastered walls finished with emulsion in soft white shade Smooth plastered ceilings in soft white emulsion Modern groove detail skirting and door frames Stone matt finish to skirting boards and door frames White doors Contemporary chrome and black nickel door handles 82

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Floor Coverings

Electrical and Maintenance

Hallway Quality vinyl

Electrical and Maintenance

floor in wood effect Black nickel light switches Living Area Quality vinyl floor in wood effect

White downlights throughout

Dining Area Quality vinyl

Phone point to living area

floor in wood effect Satellite point to living area Kitchen Area Quality vinyl floor in wood effect

Bathroom to have black wall mounted heated towel rail

Bedroom Quality carpet in stone Bathroom Quality grey floor tile

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Kitchen Quality matt grey kitchen including base units and a selection of eye level cupboards Apartment plan dependant Soft close doors Concealed under wall cabinet lighting illuminating the work surface below Quality complimentary laminate work surface Fan assisted single electric oven 600mm electric hob Integrated tall fridge / freezer Integrated washing / dryer machine Brushed stainless steel extractor hood Black composite sink & gunmetal monobloc tap Feature tiled splashback

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Bathroom Spanish wall & floor tiles Floor standing WC with push button flush Floating hand basin with cabinet surround Fully enclosed shower with glass door Overhead shower with mixer and riser Wall mounted black heated towel rail

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Property Prices According to Zoopla, as of November 2020, Newcastle’s average property price of £207,104 is significantly lower than England’s average of £304,373whilst the upward trajectory of the value change is in line with the national average at around 6%.

For investors, the key take aways from these figures is that prices are currently considerably lower than many other investment options in the UK and also that there is now a window of opportunity before prices climb due to the continued growth of the city and increase in demand for housing.

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Rental Yields The combination of low property prices and strong rental demand have pushed yields upwards in recent years, in some of Newcastle’s postcodes rental prices have increased by as much as 20% over the last 5 years.

Average rental yields in certain postcodes, particularly the central Newcastle areas, are strong for example the average rental yield for NE1 is reported to be 6.3%, the average in NE2 is 7.3% and in NE6 is 7.4%.

Looking forward, with the projected job creation adding to an already growing population, combined with low property prices – there’s logic to say these yields could increase.

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Rental Demand When considering a location for

the population is predicted

investment rental demand is a

to grow by at least 7,300

key factor, any sensible investor

by the end of 2022 and the

will focus not only on the current

continued economic growth

demand, and present housing

is expected to attract new

shortfall but also consider where

skilled workers to the city –

rental demand is likely to increase

14,000 new jobs are set to

and why.

be created over the next 10 years, student numbers are

Not only does Newcastle have a

also set to rise. The city’s

strong economic centre, it is also

population growth is set

home to two major universities

to continue to outpace the

that employ around 10,000

planned construction.

between them and also have a total student body of around 45,000.

The city of Newcastle has a population of around 300,000 and

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Investment in the heart of the city.

Wardour Point 98

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Thirlmere Deacon London info@thirlmeredeacon.com + 44 (0) 2039507939 Lansdowne House, Berkeley Square, Mayfair, London, W1J 6ER

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