When most people think of UK property investment, they tend to focus in on prime London. And while these trophy properties do provide steady returns, those investors who care more about asset performance are better served looking elsewhere in Britain.
London commuter belt apartments and property in Northern Powerhouse cities such as Liverpool can provide stronger rental yields and higher appreciation than traditional investment destinations. For example, six Liverpool postcodes were in Totally Money’s top 25 best buy-to-let areas last year. Yields nearing ten percent were recorded in some areas with six Liverpool postcodes achieving yields of 6.8 percent or greater.
And while rental yields in notable London neighbourhoods like Chelsea and Kennington sat around the 2.5 percent mark in 2018, several London commuter belt communities were approaching five percent. Meanwhile, investment in Liverpool and the London commuter belt provides far more value for money than prime London at the moment.
“For international investors, the market currently provides an opportunity to get more value for their money. Brexit has ultimately increased the appeal of what is already a highly attractive market for property investors,” Jerald Solis, Experience Invest Business Development and Acquisitions Director, says. “In terms of capital growth, the British property market has historically held its own in time of political uncertainty.”
Of course, Brexit isn’t the only thing real estate investors from Southeast Asia should consider when looking at UK property. There are a number of market factors that make Liverpool and the London commuter belt attractive places for real estate investment.
“Putting Brexit to one side, buy-to-let investors should always consider supply and demand. Across the country there is a national housing shortage and with demand for property remaining consistently high, homebuilders are under increasing pressure to build more properties,” Solis notes. “The shortage of housing has priced many first-time buyers out of the market, forcing them into rental property. For buy-to-let investors, there is real opportunity to secure strong rental returns in the coming years.”
Potential UK investment properties
Experience Invest has a number of outstanding Liverpool and London commuter belt projects in its portfolio. Investors will be able to enjoy passive rental income from a fully managed property in these high-performing markets. In Liverpool, the company has Infinity Waters, an impressive triple-tower development in the city centre.
“The project will offer highly desirable apartments to the local property market. The complex will contain world-class facilities and the development is expected to be very popular with local workers and young professionals, making this opportunity ideal for buy-to-let investors,” Solis states. “Experience Invest is offering apartments within the development with a 15 percent early investor discount. Investors will also secure an assured three-year NET rental return of seven percent per annum.”
Those eyeing the London commuter belt should consider Imperial Square in Luton that is only a 22-minute train journey from Central London. This off-plan property investment is ideally situated to serve growing demand from London commuters looking for living space within easy travelling distance of the capital.
“Designed to maximise investor returns, one- and two-bedroom apartments within this residential development are available with a 20 percent early investor discount and an assured six percent NET rental return for two years,” Solis explains. “Delivered by an award-winning developer, upon completion, each apartment will have a 10-year NHBC Warranty and will be fully managed by a leading management company.”
