UK Investment Case For Foreign Investors - Property Hotspots

I am proud to present to you the potential benefits of investing in off-plan buy-to-let (BTL) residential properties in the United Kingdom, specifically for foreign investors both in the short and long term, with the underlying goal of capital appreciation and using the equity gain through these investments organically grow your property portfolios through snowballing your seed capital.

Over the past few years, the UK property market has seen tremendous growth in the off-plan buy-to-let sector, particularly in the Northwest region of England. With a booming economy and a growing population, this region has become a hotbed for property investment, making it an attractive destination for domestic as well as international investors.

But what exactly is off-plan buy-to-let investment? Simply put, it is the process of purchasing a property "off-plan," meaning that the property has not yet been built or completed but is available for pre-sale. This type of investment offers several advantages over traditional buy-to-let properties, including significant discounts, favourable payment terms, and the potential for high rental yields.

Property Investment Hotspots

Northwest England

In the north-west of England, you can expect to see a particularly strong return on investment, with rental yields of up to 7%+ in some areas. This can provide a steady stream of income for long-term investors, particularly those who are looking for steady cash flow and passive income. The rental market in the North West is particularly robust, driven by a thriving economy and a large student population. Manchester and Liverpool, in particular, are experiencing high demand for rental properties.

Of course, one of the most significant benefits of off-plan buy-to-let investment is the potential for capital appreciation. Thanks to favourable market conditions, property values in the north-west have seen steady and consistent growth over the past few years, and this trend is expected to continue well into the future.

As a result, investors in off-plan buy-to-let residential properties can expect to see significant capital gains over time, which can translate into a substantial return on investment. Moreover, the ease with which foreign investors can enter and exit the UK property market makes this an attractive asset class for anyone looking to diversify their investment portfolio.

Liverpool

Over the years, Liverpool has transformed into a bustling city with multiple regeneration projects, excellent transportation links, and a thriving economy, making it a prime location for real estate investment. The city boasts a diverse population of over 500,000 and remains an attractive destination for international students as the city is home to multiple reputable universities, such as The University of Liverpool and Liverpool John Moores University.

Despite the challenges of the pandemic, Liverpool has remained resilient and robust. The city experienced the fastest-growing economy outside of London before the pandemic, and investment into key development projects remain strong - this further demonstrates the city's strong potential for long-term investment opportunities.

Liverpool is one of the fastest-growing cities in the UK, with a flourishing economy and a vast population growth rate. The city is home to two giant football clubs, a world-class university, and numerous tourist attractions.

One of the most significant advantages of offplan BTL residential property investments is that the prices are below market value before the property has even been completed. This provides investors with the opportunity for significant capital appreciation over time, as the value of the property rises.

Moreover, there is a high demand for rental accommodations in Liverpool. It is due to the city's growth in education, hospitality, and football tourism sectors which attract a large number of students, business travellers and football fans from diverse backgrounds. This high rental demand combined with the lower base price of offplan developments makes the rental yields of offplan BTL residential properties particularly profitable for investors.

Liverpool property market is particularly lucrative due to the city’s prime location for businesses and commercial investments. The construction of a new deep-water port is an excellent opportunity for investors, as it is set to increase the city's popularity and amplify the economy further. Investing in offplan buy-to-let residential properties in Liverpool offers foreign investors a secure and beneficial form of investment. The government's commitment to investing in infrastructure and job creation in Liverpool serves as a guarantee of long-term stability and growth.

Here are a few reasons why Liverpool's BTL property market is an excellent investment opportunity:

1. Steady Increase in Property Prices

Despite some fluctuations, Liverpool's residential property market has seen a steady increase in both rental and purchase prices, making it an attractive location for investors. Liverpool's average house price has increased 30% over the last seven years, and with the right investment, investors could earn significant returns on investment with capital growth, both long and short term.

2. High Rental Yields

Liverpool's BTL rental market is strong, with a high demand for rented apartments and houses from young professionals and students. According to Statista, Liverpool's average rental yield stands at more than 7%, which surpasses London's average of 4%. This provides an excellent opportunity for investors to generate an attractive rental yield, which can significantly boost their monthly and annual returns.

3. Regeneration Projects

Liverpool's property market benefits from several regeneration projects, such as Liverpool Waters and the Ten Streets Creative Enterprise District, set to bring new homes, offices, retail, and leisure space to the city, further fuelling demand in the property market.

4. Location and Connectivity

Liverpool is well-connected enabling the easy access of residents to the city center, and beyond, with excellent transport links, including a major airport along with its proximity to other large cities such as Manchester.

Conclusively, Liverpool's government commitment and vast investment in infrastructure and commercial opportunities make offplan BTL investments a safe and wise investment in the current climate. The high rental demand and lower base prices of offplan developments make this investment particularly lucrative for foreign investors.

Manchester

Over the last few years, Manchester has seen a surge of real estate investment, especially in the BTL sector. The city’s excellent rental yields, relatively low property prices, and robust capital appreciation make it an attractive investment destination for foreign investors.

The capital appreciation potential of offplan BTL residential properties in Manchester is significant. The city is undergoing rapid growth and development, with numerous regeneration projects underway, including the £1.5bn Northern Gateway project and MediaCityUK. The continued expansion of the city centre and surrounding areas is expected to drive property prices up, providing investors with opportunities for significant capital appreciation.

Investing in Manchester's property market is also a great way to diversify your investment portfolio. Property investments typically have a low correlation with other investment classes such as stocks, bonds, and commodities. Therefore, investing in Manchester's property market can help reduce overall portfolio risk.

I would recommend an investment in off-plan buy-to-let residential properties in Manchester for foreign investors both long and short term for the following reasons:

1. High demand for rental properties

Manchester is witnessing a high demand for rental properties from young professionals, students, and families, which is only set to grow thanks to the city's thriving economy, great transport links, and vibrant cultural scene. This means that investing in an off-plan buy-to-let property in Manchester is likely to yield significant rental returns thanks to the high demand.

2. Economic growth and regeneration

Manchester is rapidly transforming into a central hub for business in the UK, making it an attractive destination for foreign investors. The economic growth and regeneration projects taking place in the city are likely to fuel demand for residential properties, leading to significant capital appreciation in the long term.

3. Lower cost of living

The cost of living in Manchester is generally lower than London and other major UK cities. This makes the city an attractive destination for students, young professionals, and families looking for affordable rental properties. By investing in off-plan buy-to-let residential properties in Manchester, foreign investors can benefit from lower costs while still enjoying healthy rental returns.

4. Diversity (Range of investment)

Manchester has a thriving property market with a range of investment opportunities available. This presents foreign investors with an opportunity to diversify their investment portfolio and spread their risk. Investing in off-plan buy-to-let residential properties in Manchester can offer foreign investors an attractive investment option with high potential for capital appreciation in the long term.

In conclusion, investing in Manchester's residential BTL property market is a smart decision both in the long and short term, offering high rental yields, strong demand for housing, capital appreciation, stability, and diversification benefits.

Weakened Pound

Foreign investors can benefit from favourable exchange rates when investing in UK property, particularly in light of recent fluctuations in currency values. This can help investors secure properties at lower prices than the domestic market, further increasing the potential for long-term capital appreciation.

In the short-term, foreign investors can benefit from the weakened pound by acquiring properties at a lower price than before. This will ultimately provide them with greater capital appreciation once the pound recovers its strength. Foreign investors can also benefit from higher rental yields due to the fall in the exchange rate, which would increase the amount of rental income in their local currencies.

In the long-term, foreign investors can take advantage of the weakened pound by establishing a strong foothold in the UK property market. This would allow foreign investors to reap the benefits of a more valuable property portfolio when the pound recovers its strength. Furthermore, the devaluation of the pound can also help drive up property prices across the country, leading to capital appreciation for some of the most desirable areas.

In conclusion, the weakened pound provides significant benefits for foreign investors in the UK property market, both long-term and short-term. The current economic climate provides an opportunity for investors to benefit from lower property prices, higher rental yields, and greater capital appreciation. Foreign investors should be vigilant in their analysis and investment strategy to make the most of these opportunities with the help of trusted professionals in the industry.

In closing, I'd like to reiterate the unparalleled investment potential of off-plan buy-to-let residential properties in the north-west of England for foreign investors looking both for short-term cash flows and long-term capital appreciation. Whether you are a seasoned investor or someone just starting, the UK property market offers an excellent opportunity to generate capital, myself and my company is here to help you every step of the way.