Thirlmere Deacon Property Investment Magazine Issue 8 January 2022

Issue 8, January - 2022

DIVERSIFY YOUR PORTFOLIO: Introducing Dubai

contents CEO Letter

Market Report Q4

Alasdair Walker: Marketing Director Amy Marshall: Chief Writer/Editor Nevena Djuranovic: Art Director Isidora Mladenovic: Brand Strategist

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UK Property 66 Market GETGROUND:

Growing Trends In The UK Property Market

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28 Dubai

SCAN TO DOWNLOAD OUR GUIDE!

Developments in Q1

Investment strategy - 10 Features That Tenants Look For In A Rental Property

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T

he final three months of 2021

investors with the likes of Emaar,

have been incredibly exciting

Dubai Properties and Meeras, and

here in the Dubai office; we officially

whilst demand for Dubai investments

launched our Dubai sales arm and have

has been through the roof, the UK

enjoyed a successful first quarter

market has also been popular in this

launching the magnificent Peninsula

region with £6.2m of reservations

development in Business Bay.

made in the final quarter of 2021.

Since October 1st Thirlmere Deacon

2022 will see the expansion of the

Dubai has been involved in over AED

Thirlmere Deacon team in Dubai, with

12m of transactions across both the

a new office and big plans to assist

towers at the exquisite Peninsula that

clients in the expansion of their

has already seen over 80% of the

portfolios both in the UK and here in

development sold out. Further towers

Dubai.

will be released in the coming 12 months and those investors who

Wishing everyone the very best for

secured their apartments in Phase 1

2022.

will already be benefitting from considerable growth as the units were all acquired at around 20-25% under the current market value already.

Oliver Mohsen-Taheri, Head of Dubai Operations

The New Year will see exclusive developments becoming available to

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M

oving into a new year has so

our developmentsites through our

many positives. It not only

offices and on to our clients and the

allows you a natural break to assess

public. Even if this means sending our

things you might like to change, but

own camera teams across the country

also gives those who wish to see it this

more regularly to shot sites, locations

way, a benchmark and target to out-do

and updates, this is something we are

the following year. As a company, there

working on and hope to be reporting in

are definitely some things I’d like to

new and exciting ways in 2022.

change as we enter our 5th calendar year, but there is also so much good to

This time of year offers an opportunity

build on. For example, I truly believe

to thank those that have worked so

that in 2021 we added some incredible

hard for us, with us and alongside us.

talent to our personnel, from which the

We really wouldn’t be where we are

makings of some great leaders in the

today without the investors, the

property investment field are

clients, the call ins, the walk ins, the

emerging. As we grow and build the

developers, builders, mortgage brokers,

team we hope to add more dynamic

solicitors, property managers and of

and ambitious individuals to the fold.

course, the tenants. Thank you all for being part of this incredible sector.

One of the challenges we have faced here at Thirlmere Deacon this year has

Onwards in to 2022…..

been communication, as we grow, we

Stuart Williams,

need to find effective and innovative ways of delivering information from

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CEO, Founder

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Movement MARKET

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HOUSE PRICE FORECAST: FOCUS

3.3% UK HOUSE PRICE GROWTH

3.3% Scotland

4.3% North East England

The rate of house price growth is due

3.8%

North West England

to slow in 2022, but remain positive, ranging from 2% (London) to 4.3% (North West).

3.3%

3.5%

Yorkshire & the Humber

4.0%

Growth will be highest in northern

2.8%

and Midlands regions, where affordability is less constrained, and slowest in London where it is more stretched.

East Midlands

3.5%

A shortage of homes on the market

West Midlands East of England

Wales

and high levels of equity will be key drivers for house price growth in 2022.

Cost of living rises and the

London

3.0%

South West England

2.0%

South East England

expectation that mortgage rates and

3.0%

taxes will increase in 2022 are likely to impact affordability, thus limiting house price growth.

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*2022 HOUSE PRICE FORECASTS Source:Dataloft, Zoopla, Savills

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UK HIGH STREETS ARE

recovering

The past 18 months have been tough

Small/medium sized cities and large

for UK high streets due to Covid-19

towns have recovered the most. Large

restrictions in early 2020 which

cities have recovered the least and

triggered a hollowing-out of city

continue to struggle due to upward

centres.

trend in remote working.

Footfall and spend analysis from the

Thriving places are those with a

Centre or Cities/Locomizer suggests

catchment of high disposable incomes,

that UK cities have begun to recover

large number of workers commuting in

(despite increased online shopping) but

(even if flexibly) and have shifted

at varying degrees.

businesses located in them.

TOP PLACES FOR RECOVERY

By footfall 1. Blackpool

6. Sunderland

2. Southend

7. Wigan

3. Barnsley

8. Preston

4. Burnley

9. Wakefield

5. Plymouth

10. Dundee

By spend 1. Blackpool

6. Cardiff

2. Wakefield

7. Swansea

3. York

8. Middlesbrough

4. Liverpool

9. Plymouth

5. Telford

10. Huddersfield

Source: Dataloft, Centre for Cities, Locomizer

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INCREASE IN UK RENTS:

ANNUAL INCREASE IN UK RENTS

Wales

£734

Scotland

£755

East Midlands

£735

North West

£830

South West

£971

Yorkshire & the Humber

£725

7.7%

Northern Ireland

£705

7.3%

West Midlands

£797

July to September is the busiest quarter of the year for the rental market. In a normal year, 32% of tenancies start in quarter 3. This is likely to be higher in 2021, as students and workers return to cities.

It is therefore no surprise that the UK average monthly rent has seen an

Greater London

£1,752

South East

£1,139

East of England

£1,021

annual increase of 7.5% and is higher than pre-pandemic levels.

7.5%

North East

Wales has seen the largest annual

£578

AVG MONTHLY RENT

12.9%

ANNUAL CHANGE

10.5% 8.4% 7.8% 7.6%

6.7% 6.4% 6.1% 5.6% 3.6%

increase in monthly rent, 12.9%, followed by Scotland, 10.5%, and the East Midlands, 8.4%.

Rental growth forecasts for the next 12 months are slightly above 3%.

Over the next five years, rents are forecast to increase by 4% per annum

AVERAGE MONTHLY RENT IN THE UK

£1,061

across the UK (RICS).

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Source: Dataloft, HomeLet, Royal Institute of Chartered Surveyors 17

29%

of the students live in the private rental sector

435,430 first time students have a

In the UK, excluding London, students

confirmed place at university in the

in the private rental sector spend an

UK in 2021, this is 5% higher than

average of £508 on their share of rent

results day in 2020.

a month and a total household rent of £1,313.

During university, 29% of students live in the private rental sector.

In London students in the private

Dataloft estimate that 570,000

rental sector spend an average £1,007

students will be living in the private

on their share of rent, and a total

rental sector during the next

household rent of £2,026.

academic year.

STUDENTS IN THE PRIVATE RENTAL SECTOR: FOCUS Source: Dataloft Rental Market Analytics, HESA 18

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BASE RATE OF INTEREST EXPECTED TO RISE SOON The base rate of interest is set to rise in the ‘coming months’ as the

adjustment to the housing market is anticipated in the short term.

Bank of England acts to control the UK economy.

Compared to the Global Financial Crisis in 2008/09, when the base

The Bank voted to keep the base

rate was often in excess of 5%,

rate at its historic low of 0.1% in

the rate by the end of 2022 is

November, but with inflation 3.1%

expected to be a maximum of 1%.

and predicted to rise to as much as 5% in the first half of 2022, a rise

Raising the base rate encourages

is likely.

people to save, not spend,. This should slow the increase in prices

Any rise will impact mortgage

of household goods.

borrowing costs, although with an estimated 80% of borrowers on

Source: Dataloft, Bank of England

fixed rate deals, no significant

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DEMAND STABILISING BUT PRICES SET TO REMAIN FIRM

Buyer demand is stabilising according

volume of newly agreed sales fell back,

to the latest edition of the RICS

a net balance of agents (-15) citing a

Residential Survey.

decline.

At a national level the new buyer

Sales volumes are expected to remain

enquiries indicator posted a net

stready throughout the final quarter of

balance of zero in September, a sign of

2021, a continued shortage of supply

stable demand.

sustaining pressure on prices.

For the third consecutive month the

Source: Dataloft, RICS

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The cost of borrowing remains historically low according to new data released by the Bank of England, the average mortgage rate just

2.29%

MONTHLY TOTAL: This rate has remained unchanged since the start of 2021, with gross mortgage

Average mortgage rate remains historically low

lending in March hitting its highest ever monthly total at

20%

Mortgage approvals remain over

£35.6 billion The Bank of England Monetary

higher than the long term (5

Policy Committee voted

year average), as interest in

unanimously on 5 May to

moving home continues.

maintain rates at 0.1%. The next meeting is 16 June.

7.12% 5.52%

2000 24

2005

3.36% 3.14% 2.33% 2.29% 2010

2015

2020

2021 25

DEVELOPMENTS

Q1 2022

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Dubai

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FROM £232,000

In a city that regularly breaks world records and sets the bar for exquisite buildings and spaces, there is rarely the opportunity to find a first. Creek Beach presents the first-of-its-kind urban beach set in the heart of Dubai Creek Harbour, a private beach for use only by those staying in the development.

Creating a unique paradise, Creek Beach boasts 700 metres of pristine white sands and an infinity pool.

Dubai is known for offering an exceptional quality of life, Creek Beach surpasses the standards set within other developments, allowing residents to enjoy a beautiful setting, exquisite facilities, and outstanding amenities.

Dubai Creek Harbour is well connected with a fully-integrated transport system that enables residents and visitors to get around Dubai with ease, including water taxis directly to Downtown Dubai.

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This collection of 5 elegant towers is positioned around the bustling inner plaza, alongside the 700 metre long private sandy beach, looking out over Dubai Creek Harbour and beyond, many apartments enjoy spectacular views of the Dubai skyline. Stylish 1, 2 and 3 bedroom apartments and stunning 4 bedroom penthouses are available to buy.

Each of the apartments has been designed with modern luxury living in mind, with spacious interiors and light flooding in through large windows.

The on-site development facilities include a pool, gymnasium, children’s pool, children’s play area and entertainment room, together with access to the stunning beach, poolside relaxation area and bar and a broad selection of retailers within the development.

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Peninsula, BUSINESS BAY

FROM £128,000

Designed with the modern city life in

retail, and the leisure and recreational

mind, the stunning contemporary

facilities within the development.

Tower Apartments of Peninsula One

Whether you are a single professional

offer residents an incredibly high

or a growing family, Peninsula has

standard of living with premium

been designed to suit every need.

finishes throughout the properties, in

With a long track record of building

an idyllic waterfront setting.

some of the world’s most luxurious

This selection of truly special

buildings, the developer behind

residences are incredibly well-

Peninsula has an extensive and

connected, being positioned in the

impressive track record for delivering

Business Bay of Dubai, Dubai’s famous

award-winning properties.

office district, The Peninsula is just a

Already one of the most sought-after

few minutes from Burj Khalifa, Dubai

developments in the region, Peninsula

Mall and Dubai Opera, and Dubai

will quickly become one of Dubai’s

International Airport is just 16

most coveted addresses.

minutes away.

Peninsula will create a vibrant and exclusive community, with careful consideration having been put into

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UK

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Ancoats Gardens, MANCHESTER

FROM £289,995

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Located in the Ancoats area of

exposed concrete walls and ceilings,

Manchester, a location recently voted

quartz worktops, beautiful textured

to be one of the coolest

woodgrain antique maple flooring and

neighbourhoods in the world, this

bespoke luxury furniture created to

impressive development of 155 luxury

compliment the style and layout of

apartments is in an excellent city

each apartment. Quality fittings and

centre location and boasts an array of

fixtures are being installed in each of

amenities for residents use.

the properties including Bosch

Designed with the modern, young

integrated appliances, LED lighting

professional in mind, Ancoats Gardens

and air source heat pumps with

not only offers stunning apartments

underfloor heating.

but residents also benefit from access

Positioned within minutes of

to a private residents lounge, co-

Manchester’s business and leisure

working space, rooftop gardens and a

districts, Ancoats Garden’s is perfectly

large duplex gym.

located for those who live and work in

Contemporary design is being used

the city. N.O.M.A, the media and tech

throughout the building including

hub and home to Amazon are just 5 39

minutes away. Many of the city’s luxury retailers, including Selfridges and Harvey Nichols, are within 10 minutes and Manchester Piccadilly train station is 12 minutes away.

Manchester remains to be one of the most exciting and promising locations in the UK with considerable price growth predictions and demand from professional tenants incredibly high for modern rental apartments in the city centre.

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Newbury Place, NEWBURY

FROM £195,000

Beautifully designed and equipped with

town centre yet positioned on a quiet

the finest fittings and fixtures, no

residential road.

detail has been missed during the planning process of the contemporary

Whilst the town’s amenities are just a

Newbury Place apartments, ensuring

short walk away, the building itself

they are functional and enjoyable

boasts several on-site amenities

places to live.

including a fitness room, leisure atrium, a media screening room, off-

This collection of chic and modern

street parking, and a concierge service.

residential apartments is in a soughtafter part of Newbury. Positioned close

Newbury Place presents the

to the town centre with easy access to

opportunity to secure a luxury rental

the amenities, a short walk from local

property in a location rarely available

parks and less than 860m from the

to investors, set to achieve robust

railway station, making it ideal

growth in the coming years.

for commuters.

Newbury Place offers an idyllic balance as a desirable place to live, near to the 42

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FEATURE ARTICLE

WHY

DESERVES A PLACE IN YOUR INVESTMENT PORTFOLIO

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N

ot only is property one of the most reliable forms of tangible

investments, but it also offers incredible flexibility with regards to the types of property you can invest in, the investment strategy you choose and even the location of the property.

In many ways, it’s easy to keep an ear to the ground when it comes to UK property. After all, it’s a given that certain cities will attract higher yields for landlords. Others may be considered as up and coming areas that will eventually give you a generous payoff if you’re patient enough. Many of the top untapped locations feature in our investor emails and magazines, helping you to keep a pulse on which areas to look out for.

...

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But what happens when you step outside of the UK property market?

Without looking at the full picture, this creates the possibility that incredible opportunities elsewhere across the globe could be passing you by. This is certainly the case with the Dubai property market, for anyone who is yet to invest in property here.

For those who aren’t up to speed on the property market in Dubai, particularly the buy-to-let scene, here is everything you need to know, including why the city is a worthy contender for any investment portfolio.

...

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If you’re a subscriber to our investor insight emails, you may have seen that Dubai was crowned the top city for rental yields for 2021.

HIGHEST

Rental Yields for

IN THE WORLD 2021

Using data from Numbeo, we checked the rental yields of the top global cities and this is what we found…

9.19% Miami 8.33% London, Canada 7.89% Los Angeles 5.52% New York 4.48% Toronto 3.93% Milan 3.46% Berlin 3.43% Sydney 2.88% Singapore 2.48% Moscow 2.47% Paris 2.27% Seoul 1.09% Dubai

But as any investor will know, purchasing a buy-to-let property is more than just about rental yields.

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What’s unique about Dubai is that it has far lower purchase prices than the likes of London or New York in combination with those high yields.

So in essence, it costs far less to tap into the Dubai property market and you’ll be rewarded with extremely good returns for doing so. All the while, your investment will gradually increase in value, and given the exponential growth Dubai has been experiencing in the last few years, now poses the perfect time to get in on the action while the pendulum very much still swings in favour of new investors.

While it’s impossible to make direct comparisons with Bitcoin, something we hear time and time again in our investor interviews is that ‘if only’ people had invested in cryptocurrency back in the day. In terms of the property market and projected future growth, Dubai is very much showing itself to be the equivalent in terms of its potential. All without the risk involved since property is not an unknown format and the developers have existing successes for you to factor in as part of your decision.

The only difference is, you’re reading about Dubai’s incredible growth and low property prices versus high rental yields now, and not in 10 years time!

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opportunities

BUSINESS BAY FROM £128,000

Imagine trying to secure a luxury new

renowned in the Middle East, having

development in a central location in a

built some of the most notable

city such as London or New York and

developments to grace the Dubai

get change from £130,000. Unless you

skyline, including The Residences At

own a time machine, it’s just not going

Marina Gate, Royal Oceanic and

to happen. In fact, a quick look on

Bay Central.

Rightmove will in fact inform you that this amount of cash will just about

Select Group have also completed

stretch to buying a parking space.

many notable projects here in the UK too, including 98 Baker Street which is

But in Dubai? You can purchase a

also being represented by us here at

prime piece of real estate in Business

Thirlmere Deacon.

Bay which is just moments from The Burj Khalifa offering unrivalled

However, unlike 98 Baker Street which

waterfront living, built to an incredibly

starts at £850,000, we think you’ll

high specification starting at just

certainly agree that £128,000 is quite

£128,000, for a projected yield of 8%.

an attractive price point, especially given the quality of the build and the

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The developers of Business Bay -

location of Business Bay in the heart

Select Group - are some of the most

of Dubai.

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NoINincome tax DUBAI This is another common fact about

income tax is also a factor that is

Dubai that often surprises people when

highly appealing to expats, along with

they learn more about the UAE because

those who move out to Dubai

frankly, they didn’t realise it could

temporarily for work. It is also yet

even be something that was on the

another selling point that makes the

table, especially when we’re all so used

buy-to-let market strong in Dubai since

to the UK taxation system.

workers who are attracted to the high salaries and zero income tax will need

Yet, it’s true! Dubai doesn’t collect

accommodation throughout their stay.

income tax, nor does it collect any

So why not provide this to them as a

annual property tax or inheritance tax.

build-to-let landlord and reap the rewards?

What investor wouldn’t want to keep more of their money? The lack of

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quality

EXCELLENT BUILD

As a buy-to-let investor, something

flooring. The building is also abundant

that’s always going to be at the

with luxury amenities, meaning

forefront of your mind is the quality of

residents have everything they need to

the build. If the build quality is poor,

work and play within the building

or if the building is so old it’s in need

itself. As is standard with Dubai

of constant maintenance, this means

property, sophisticated air conditioning

more involvement for you as a landlord

systems also ensure the rooms remain

and ultimately more expense. Plus,

perfectly comfortable even during the

your yield will undoubtedly suffer if

hottest season - a minor detail to some

the building isn’t up to modern

but essential to ensure 365 days of

standards, even if the property happens

perfect use and enjoyment of your

to be situated in a prime location.

property.

In Dubai, not only do we offer our

If we go back to that price point of

investors new builds, but we think

£128,000, it’s simply not going to be

you’ll agree the standard of them is

possible to secure something of such

nothing short of outstanding. In The

high specification in the likes of

Peninsula development, every single

London. Yet with Dubai, it’s a major

facet has been subject to careful

city, the build quality is excellent and

consideration, using materials such as

therefore, it’s very much possible!

quartz and stone for the worktops and

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lifestyle benefits AMAZING

When considering investing in Dubai

single year, and given the lockdowns

property, much of the focus is naturally

we’ve experienced, it’s no wonder that

going to be on the property itself.

tenants value access to the outdoors

However, similar to how when

and of course, the chance to enjoy

searching for a property in the UK

constant sunshine as part of their

you’ll consider the wider location, this

considerations when moving abroad.

is true of Dubai too.

Given Dubai also has low crime rates,

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A huge difference with Dubai is that it

political stability and world record-

benefits from year-round sunshine, and

breaking attractions on your doorstep,

while the weather may seem like an

it really does have something for

insignificant point, it is in fact one of

everyone. For any tenants who move

the top reasons why people purchase a

with their families, they will also be

home in a different country. Some

pleased to know Dubai has extremely

400,000 British citizens emigrate every

good schools including 58 British

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schools in the city alone and much lower childcare costs than in the UK. In November 2020, the UAE also relaxed rules surrounding unmarried couples living together and requiring a licence to drink alcohol. While we’d always recommend conducting your own research with the relevant authorities, a relaxation of two laws that previously caused hesitation for tourists and residents alike should be seen as hugely positive for investors, especially with the influx of new interest this could bring to Dubai in the coming years as a result.

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IN SUMMARY:

Why Dubai

Dubai is very much the jewel in the

check out our Peninsula One

Emirates crown, especially in terms of

opportunities or contact our Dubai

what it has to offer for investors. Low

office directly to help select the right

entry points paired against high rental

opportunity for your portfolio. Now is

yields are something every investor

very much the time to do so, since

should take note of, especially given

Dubai is undergoing a seismic

the excellent build quality that

transformation as a hub for business

developments in the city have to offer.

and innovation. Investors are therefore encouraged to secure their slice of the

We welcome all interested parties to

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pie while it’s still hot.

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Outlook FOR 2022:

UK PROPERTY MARKET 66

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SEASONED REAL ESTATE EXPERTS, Thirlmere Deacon consider what’s ahead for the UK property market in 2022.

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In 2021, the country’s property market

of properties available and face

has excelled considerably with £473

competition in the market when

billion worth of property expected to

looking for a place to buy, those who

be sold before 31st December 2021,

are able to secure a property for a fair

£95 billion more than the value of

price in the closing months of 2021 or

sales in 2020*. What does this busy

early 2022 are set to enjoy robust price

year mean for 2022? And is now a

rises in the coming years - It’s an

good time to buy?

exciting time to buy property

Whilst homebuyers and prudent

in the UK.

investors might experience a shortage

* According to Zoopla 70

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PRICE

predictions As the country has emerged from

over the next 5 years.

periods of uncertainty in the past, those who secured a property in a

Even with these impressive price

rising market have experienced the

growth predictions, what you buy and

greatest return on their investment.

exactly where you buy remains the key

Property price forecasts have remained

to success when investing in property

consistent and unanimous in their

– certain cities and towns within each

prediction that price growth will be

region will outshine others in the rate

steady in 2022 and thereafter, with

of capital appreciation they experience

certain parts of the country expected

over the next 5 years.

to experience almost 30% price growth

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Prime Central London, which includes areas such as Mayfair and Marylebone, are an example of a micro-market within a broader area that is set to do far better than its surroundings. The latest price growth forecast for London overall sits at just 12.4% by 2025. In comparison, the analysts** predict that Prime Central London will experience price growth of 21.6% in that same period, almost double.

In other parts of the country the North West region which includes Manchester and in Yorkshire & The Humber where you’ll find Hull, prices are predicted to rise by 28% over the next 5 years.

Price growth continues to be strongest in those areas where property remains to be affordable, this was seen throughout 2021 where the cities with the highest price growth were Manchester, Liverpool and Sheffield.

** Savills latest price predictions 74

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THOSE WHO

sit on the SIDELINES and wait for

THE ‘PERFECT’ MOMENT

to take ACTION will often

MISS OUT.

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Why

THE UK?

When comparing UK property to homes

might have risen considerably over the

across the rest of the world there are

past 10 or 20 years when the cost of a

some notable differences. In particular,

property in the UK is compared to

the quality of housing in the UK stands

those across the rest of the world, they

out as some of the best in the world

are still in fact reasonable. For

with regulations that ensure developers

example, the average price of a

must meet certain standards, and

property in the UK is £254,624 which

works must be signed off by qualified

is far less than the average price of a

professionals.

property in Singapore, for example, which is currently £1,122,889***.

Furthermore, whilst prices in the UK

*** Figures from Value Champion 78

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HOW SECURE IS UK PROPERTY? The UK property market has

the UK property market has

continuously proven its resilience in

foundations unlike other property

the face of political and economic

markets across the world. There are

uncertainty for many years, and with

key policies, brought in by the New

the government supporting its recovery

Labour Government in 2008 and 2009

as and when needed, homebuyers and

that intervene and ensure the UK

investors alike can find comfort in UK

property market is not significantly

property that isn’t available with other

adversely affected. For this and many

asset classes.

other reasons, UK property is an appealing prospect to investors across

With robust housing policies in place,

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the globe.

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WHY INVEST NOW? With property, investment time is very much of the essence. Those who sit on the sidelines and wait for the ‘perfect’ moment to take action will often miss out. That’s not to say investors should take unnecessary risks, but a calculated approach to investing can be incredibly fruitful.

Property investment is not a strategy known to trigger overnight success – those who place funds into property should expect to leave it there for 5 years, or longer, to see the greatest return on their investment. Very few investment options are as resilient and on a path to experience almost 30% growth in value by 2025.

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GROWING TRENDS IN THE UK PROPERTY MARKET

By Joe Carbonaro, GETGROUND 84

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2021 was the year everything was supposed to get back to normal. The reality was somewhat different. After a rollercoaster two years, you’d be forgiven for opting not to make predictions for what will happen in the property market. But amongst all the ups and downs, there are some trends emerging that it’s well worth pausing to examine to see how what’s happened in the recent past might impact what happens in the not-sodistant future. Here are five standout themes that we, at GetGround, will watch closely in the year ahead.

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The great ‘REVERSE EXODUS’

Fed up with being confined to their homes for months on end, ONS data shows that in the first six months of 2020, more than half a million town and city dwellers in England and Wales took to the countryside, tempted by the larger gardens, cleaner air, and an often slower, calmer pace of life.

But it seems that for many, the appeal of the country idyll waned. Whether driven by jobs, schooling or social life, by the end of 2021 press reports emerged of people abandoning the good life for a return to urban life.

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In this scenario, opportunities abound for urban property investors. Rental demand is widely anticipated to be high from those returning to cities having sold low and bought high in the ‘rural rush’ and now in a hurry to get back to urban living. While prime central London will continue to have a huge appeal, access to land remains minimal in these areas, so developers will head to the outer London zones.

That fits the assumption that many city ‘returnees’ now favour a suburban lifestyle that is close to city centres but allows them the fresh air and gardens that are hard to give up.

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At the beginning of the pandemic,

of developments that paused launches

global cities ground to a halt in a way

and completions over the last 12-18

that no one has ever seen before. Sites

months will come to market

under development lay practically

during 2022.

empty for weeks as builders and contractors worked out how to operate

That’s good news for investors, adding

them safely. Projects fell behind

more quality stock to the London

schedule and other developments were

market at a range of price points. Add

paused indefinitely before they had

to this, the continual demand and

even launched.

growth for property in key regional markets around the country, London

In recent months, London construction

may appear to look unconventionally

is regaining pre-pandemic levels,

good value in the second half of 2022.

leading to expectations that a number

LONDON DEVELOPMENTS REEMERGE AFTER PANDEMIC PAUSE

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Whether it’s HS2, the North’s great ‘levelling up’ agenda, or the rising popularity of life beyond London, regional cities are getting better at attracting business investment - that means more offices, more retail, more homes.

We expect regional capitals - notably Manchester and Birmingham that vie for the title of the UK’s ‘second city’ - will likely see the largest price rises across 2022 given the rapid

Regional CAPITALS CLAIM new territory

regeneration and redevelopment of these areas.

Take just Manchester, for instance. In recent years, Sky, Deloitte and Hewlett Packard were among many multinational organisations that established large offices in the city, attracting thousands of new workers (and their families) to make their homes locally. Add to that the continued impact of Media City in Salford that drives culture and the arts to and around the region, and the Greater Manchester area looks particularly attractive. It’s unsurprising that in the last two years, one in four companies created on the GetGround platform have been formed to invest in properties in and around the so-called capital of the North.

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LIMITED COMPANY INVESTING MAKES ITS COMEBACK In the past five years, the number of properties purchased through registered UK company structures has trebled nationwide. For decades, the preference among landlords and investors was to buy in their personal names, but as accessibility, transparency and efficiency have become more important to our everprofessionalising community of investors, the tide is turning.

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Most of us will have no living memory

surprise then that the proportion of

of a time when property investment

limited companies formed to invest

through company structures was the

in property is increasing year-on-

norm. Personal ownership took

year. Financial and tax benefits of

precedence over companies over the

company investments are well

course of decades as the latter became

understood; less so is the ease with

perceived to be too challenging to

which company-owned properties can

manage. But now, technology

be monitored and assessed. Data

innovation has stripped back the

about the performance of each

complexity, equipping investors with

company in a portfolio can be tallied,

transparent mechanisms and strategies

assessed, matched and compared.

to mitigate risk, maximise returns and

Quality, accessible data equips

achieve comprehensive visibility over

investors with better decision making

their investments in one single place.

power. Investors can make informed investment decisions to fit their

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Events of the last two years applied

changing life circumstances, or in

pressure to almost everyone’s finances

anticipation of issues, not in

in some way, shape or form. It’s no

response.

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The rise of the multi-landlord

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Today half of all companies created and

and property prices rise. For them, a

managed by GetGround have two or

share in an investment property

more shareholders. This is a trend

becomes something more attainable.

we’re excited to see develop in the

We’re seeing more enquiries and

year ahead. It points towards an

action from groups of friends or

alternative route to asset appreciation

business partners to co-own rental

for people - often younger or on lower

properties, allowing them a piece of

incomes - for whom the pandemic has

the property appreciation pie as they

put homeownership even further

accrue their deposits for their first

beyond reach as interest rates, inflation

homes.

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Joe is Global Head of Consulting at GetGround. On a mission to make assets more transparent, trustworthy and accessible, GetGround enables landlords and property investors, based anywhere in the world, to more effectively manage their UK residential investments: facilitating the creation, structuring and future management of buy-to-let companies online and hassle free. At its current run rate, GetGround is adding $1 billion of UK property to its platform a year on behalf of thousands of landlords and investors based in more than 60 countries globally. To find out more, visit www.getground.co.uk or email Joe directly at joe.carbonaro@getground.co.uk 102

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Burnley RIVERSIDE LOFTS 104

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