The most recent research from The Mistoria Group has revealed that foreign investors are being enticed to purchase in the North East.
Overseas buyers are being tempted to the region as a result of the weak pound, great yields and superb occupancy in the regions’ University towns and cities.
Findings from the report indicate that there has been a sharp rise in foreign investors purchasing student property in Liverpool and Salford. Investment from overseas in these regions are up by 42% year-on-year.
The majority of these investors were found to be from China and Hong Kong, alongside UAE, Russia and Singapore.
Apartments and HMOs in northern cities, many of which offer large rental yields, are proving attractive for Chinese buyers.
Mish Liyanage, Managing Director of The Mistoria Group, notes: ‘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 continued.
Mr Liyanage went on to observe: ‘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.’
‘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),’ he concluded.