Weak pound driving foreign investors to snap up North West BTL

Weak pound driving foreign investors to snap up North West BTL
The Brexit vote reduction in the value of Sterling against the dollar and the yuan, has boosted Chinese investment in the likes of Salford and Liverpool

The latest research from The Mistoria Group has shown that foreign investors are being tempted to the North West as a result of the weak pound, high yields and excellent occupancy rates of the region’s University town and cities.

The findings show, that there has been surge in foreign investors acquiring student property in Liverpool and Salford, up by 42% year on year. The vast majority of investors are from China and Hong Kong followed by UAE, Russia and Singapore.

Chinese buyers are especially keen on appartments and HMOs in northern cities, many of which have high rental yields.  The Government’s ambition to create a Northern Powerhouse is also helping to drive foreign investment in the North West.  

Mish Liyanage, Managing Director of The Mistoria Group comments: “The Brexit vote reduction in the value of Sterling against the dollar and the yuan, has boosted Chinese investment in the likes of Salford and Liverpool.

The Chinese are not alone in their enthusiasm for newly-affordable UK bricks and mortar. The Brexit effect means that British property is 20% cheaper for many foreign investors and there are no signs that this is likely to be reversed in the near future.

Many foreign investors buy student accommodation in the North West for their children who are studying at University.  Indeed foreign, investors need look no further than Salford and Liverpool for great investment opportunities, with yields far exceeding those found in London and the South East.  Investors enjoy lower property prices and minimal void periods in many towns and cities in the North West. Both in Salford and Liverpool, we have already achieved over 80% occupancy for 2017/2018 academic year with more than six months still left in this year to fill up the rest of the rooms.

Last year we were only at 55% at this time of the year. This clearly shows the keen interest students show in going for high quality refurbished properties, managed by a reputed student management company.

Both Salford and Liverpool are undergoing a significant redevelopment and this is providing jobs and boosting tenant demand. Investors can acquire a high quality three bed HMO which will house for students, from £120K onwards. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth).”

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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