Foreign investors are snapping up rental properties in the North West of England, according to new research from The Mistoria Group, a specialist in high-yielding property investment.
Foreign Investors Snapping Up Rental Properties in the North West
The firm believes that foreign investors are taking advantage of the weak pound, high yields and excellent occupancy rates in the region’s university towns and cities.
The study found that there has been a surge in foreign investors purchasing student properties in Liverpool and Salford, up by 42% year-on-year. The vast majority of investors are from China and Hong Kong, followed by the UAE, Russia and Singapore.
Chinese buyers are especially keen on apartments and Houses in Multiple Occupation (HMOs), says The Mistoria Group, many of which have high rental yields. The Government’s ambition to create a Northern Powerhouse is also helping to drive foreign investors to the North West, the firm believes.
Mish Liyanage, the 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.”
He continues: “Many foreign investors buy student accommodation in the North West for their children who are studying at university. Indeed, foreign investors need to 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 2017/18 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.”
He concludes: “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 four students from £120,000 onwards. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth).”