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BREXIT-BEATING PROPERTY INVESTMENT TIPS FROM SURRENDEN INVEST

27/03/2019

  • Opt for regional city centre locations where pockets of demand are highest
  • Medium to long-term vision is key
  • Focus on areas where rents and property values are rising fastest
According to Knight Frank, the Brexit-related uncertainty that the UK is currently experiencing is leading to a ‘wait and see’ effect in some parts of the country’s property market. However, given the UK’s chronic undersupply of rental apartments and the fact that rents are rising steadily (the average increase was 1.0% in the year to January 2019), many residential property investors want to act now rather than wait and see what happens with the ongoing political saga. As such, specialist property investment agency Surrenden Invest has shared its Brexit-beating property investment tips, for those who want to make their money work for them sooner rather than later.
“The extension to Article 50 is just the latest twist in the ongoing Brexit uncertainty. We’re finding that many investors are tired of waiting to see how it all settles. After all, the current wrangling is only over the withdrawal agreement – there’s still an incredible amount to actually sort out once the 29 March/12 April/22 May deadline has passed. As such, we are working with investors to find Brexit-beating property investment opportunities right now, not in some distant future when the political upheaval has finally settled.”
 
Jonathan Stephens, MD, Surrenden Invest
Surrenden Invest’s first tip is to focus on existing pockets of demand. City centre living has come back into fashion with a vengeance, meaning that stylish homes with attractive amenities can generate excellent yields when located in the right areas. As JLL observes in its 2019 Northern England Residential Forecasts, “Manchester, Leeds and Liverpool have all seen significant supply shortfalls in the face of an increase in demand from people wanting to live in the core city centres.”
For investors, this provides an opportunity to identify key city centre hotspots. In Manchester, for example, the chic, contemporary Ancoats Gardens apartment building is located just 300m from the vast NOMA site, which is the largest development project in North-West England, costing a cool £800 million. For investors with a medium to long-term outlook, it’s the ideal location to purchase an apartment that will enjoy strong and sustained demand from tenants.
This focus on the medium to long-term is Surrenden Invest’s second Brexit-beating investment tip. The company cites its No. 76 Holloway Head development in Birmingham as the ultimate example of this.
“If you look at No. 76, it has everything that’s needed for a superb medium to long-term investment. The location couldn’t be better, with the Mailbox, Bullring, Grand Central and New Street Station all within two minutes’ walk – this is the ultimate spot for Birmingham inner city living. But it’s about more than just location. The whole area around No. 76 is undergoing massive redevelopment. It’s about having the vision to look past the cranes and see what the future holds – and how much tenants will want to be at the heart of that future.”
 
Jonathan Stephens, MD, Surrenden Invest
Finally, Surrenden Invest is encouraging investors who want to beat Brexit to look at areas where both rents and property prices are rising fastest – essentially, a select group of the UK’s regional cities. Birmingham, Manchester, Liverpool and Newcastle all have the right credentials, according to the Surrenden Invest team, meaning that investors who focus their attention on the best-placed developments look well positioned to beat the continuing Brexit uncertainty.

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Finance Derivative is a global financial and business analysis magazine, published by FM.Publishing. It is a yearly print and online magazine providing broad coverage and analysis of the financial industry, international business and the global economy.