News

One in 10 investors report 10% yields as Britain’s private rented sector continues to enjoy sustained demand from a population in need of rented property.

Summary:

• Demand for private rented sector property across the UK grew by 41% in Q3 2015
• One in 10 investors reported 10% yields, with the highest yields found in Yorkshire cities such as York
• Over 50% of 20 to 39-year-olds in the UK will be renting in the private rented sector by 2025 – meaning the time to invest is now

Is this the reason UK private rented sector (PRS) property is currently one of the country’s must-have assets?

41% of PRS investors reported an increase in tenant demand in the third quarter of 2015, a new survey conducted by BDRC Continental on behalf of Paragon Mortgages has found.

Average UK yields currently stand at 5.6%, but one in 10 investors said that they’re currently enjoying yields as high as 10% such is the frenzied demand for rental accommodation among tenants.

The highest average yields in the country, 6.1%, were reported in the Yorkshire and Humber region, driven by key cities such as York and Sheffield, while the lowest, 4.8%, were recorded in outer London.

Commenting on the findings John Heron, Director of Mortgages at Paragon, said: “The figures reflect a steadily improving economic outlook for the UK as a whole and show that, more and more people are actively choosing the flexibility of making a home in the private rented sector.”

Traditionally a nation of homeowners, changing attitudes towards homeownership is one of a number of factors that’s accelerating the growth of the PRS.

By 2025 it’s estimated that over half of Britain’s 20 to 39-year-olds will be renting property in the sector ─ and this is driving significant levels of institutional investment in key cities. In Manchester for example, a city with 60% more 25 to 29-year-olds than anywhere else in the UK, 10,000 PRS units are planned for construction in the coming years, driven by investment from pension funds, insurance companies and private businesses.

Source: Select Property

With increasing developmental time and competition for land, demand for student accommodation could outstrip supply in student cities across the UK.

Summary:

Demand for student accommodation will exceed supply as the length of developmental pipelines increase

Despite local authorities acknowledging rising demand, many areas are finding it difficult to adequately plan future student accommodation

Popular student cities such as Manchester and Newcastle only have enough student accommodation for 34% of their respective student body

Demand for student accommodation will extend far beyond the supply due to an increasingly pedestrian developmental pipeline.

Student accommodation is fighting for land against assets that are given preference from the government, after Chancellor George Osborne’s statement that 400,000 new homes will be built between now and 2020.

Due to the higher quality provided by privately rented student accommodation compared to university-owned, expenses can also affect the pipeline and speed of development completion.

Melanie Leech, British Property Federation Chief Executive, said: “The development pipeline is slowing … student accommodation, like other asset classes, is fighting for land in certain parts of the country. The risk is skewing consents towards housing when other types of accommodation need to be considered.”

There is a rising demand and acknowledgement from local authorities for the need for student accommodation, but it is difficult for authorities to plan adequately in their areas until the impact of the 2012 university fee hike has been fully realised.

Long-term trends show the student population increases steadily over time, but if there was an increase many popular student cities across the country would struggle to keep up with demand. Decreasing pipelines could affect cities such as Manchester and Newcastle, as each only have enough dedicated student accommodation for 36% of their entire student body.

Source:Select Property

Golden Emperor Properties offers international projects to Hong Kong investors. We work with developers from Thailand, Japan, Malaysia, the United Kingdom, Europe, and many others.

We have recently launched our Sales Gallery in Sheung Wan to provide  a comfortable environment for our customers to find out more about what we have to offer.

We are located at:

Shop 85, Holiday Inn Express Hong Kong Soho,

No. 85 Jervois Street, Sheung Wan, Hong Kong

Featured Properties:

ARIA – Luxury Residences on Kuala Lumpur’s Embassy Row

One Regent – Luxury Waterfront Project in Manchester, UK

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The Mews – Luxuriant Serviced Residences by E & O in Kuala Lumpur

Chinese investors China Media Capital (CMC) and CITIC Capital have bought a 13 percent stake in the parent company of Manchester City Football Club for $400 million (377 million euros), the companies said.

“We and our consortium partner CITIC Capital also see this investment as a prime opportunity for furthering the contribution of China to the global football family,” CMC chairman Ruigang Li said.

Manchester City’s owners City Football Group (CFG) are backing the investment as part of their strategy of expanding into Chinese football.

The deal is still subject to regulatory approval.

It comes a month after Chinese president Xi Jinping was given a tour of Manchester City during a state visit to Britain.

Prior to Tuesday’s announcement, the Abu Dhabi United Group (ADUG), the investment arm of the Abu Dhabi royal family, was the sole shareholder of CFG.

As well as Manchester City, who have twice won the English Premier League in recent seasons, CFG also owns New York City FC and Melbourne City FC and is a minority shareholder in Japanese club Yokohama F. Marinos.

“Football is the most loved, played and watched sport in the world and in China, the exponential growth pathway for the game is both unique and hugely exciting,” said CFG chairman Khaldoon Al Mubarak.

“We have therefore worked hard to find the right partners and to create the right deal structure to leverage the incredible potential that exists in China, both for CFG and for football at large.”

Source: Tribune

Golden Emperor  launched a prime development, One Regent, located in Manchester is the second most popular location in the UK. Over 100 investors attended the Hong Kong launch that weekend.

Above：Over 100 investors attended the weekend launch of One Regent.

Above: Terence Chan, Director of Golden Emperor (a subsidiary of Asia Bankers Club), provided a presentation on the Manchester property market.

Above: The building model of One Regent.