Asian investors are flocking to buy both residential and commercial UK property, despite the uncertainty surrounding Brexit and the forthcoming General Election.
According to Savills, Asian investors injected £4.5 billion into central London’s office market by the end of November 2016, accounting for a third of 2016’s total – much higher than in 2015.
Further research shows that Asian investors accounted for 28% of all transactions in the UK property market in 2016 – up from 17% in the previous year.
Most of this Asian wealth is coming from China, which has been one of the biggest investors in UK property in the past year, capitalising on the weak pound and economic uncertainty caused by Brexit.
Juwai.com – China’s leading international property portal – has seen growth in enquiries into UK property in the last 12 months jump by 60%.
While London remains a strong pull for Asian investors, many are turning to the Northern Powerhouse, particularly Manchester, where they’re finding affordable property and excellent yields.
Property investor Peter Armistead, of Armistead Property, comments on the trend: “There has always been a strong Chinese base in Manchester. Brexit hasn’t worried them at all. In fact, they see it as a positive that the UK is leaving Europe will therefore be more open to other trading partners.
“Manchester is absolutely booming, and there is a huge wall of foreign and domestic money which has left London over the last few years, as yields have dropped and taxes have soared. In my 17 years of investing in Manchester, I have never seen such positive forces behind growth, or such a strong sales market.”
He explains: “London is very overpriced. Not surprisingly, Asian investors are attracted by the very affordable property and great yields in Manchester, which are up to two to three times greater than what can be achieved in the capital.
“Manchester City Council is doing a great job encouraging growth and granting planning permission. Almost every week, a huge development is given the green light. The city is undergoing some massive changes. There is a real buzz both in the media and locally, and estate agents are selling everything they get their hands in the city.”
Are you tempted to follow in the footsteps of Asian investors and head to the north? If so, you will likely find higher rental yields and cheaper properties than in the capital.
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