Updated: Sep 10, 2020
Hong Kong and Chinese investors continue to see the UK property market as a preferred investment option. This has become more prominent in Manchester in recent years due to better investment potential when compared to other Cities such as London.
This increase in investment has been for numerous reasons as per below but the recent BN(O) Visa changes have also helped. So why else, is Manchester being seen as a preferred area for overseas property investors?
Weak Pound & Financial Incentives
Against many currencies the exchange rate of GBP is very attractive at the moment along with the cheapest tax rate among other western countries. Further to this overseas buyers also have access to stamp duty incentive which is currently being applied until 2021.
Yield and Capital Growth
UK buy-to-let properties offer good yields and in particular Manchester when compared to properties in other countries. It is common for yields in the North West to be in the region of 6 – 8% whereas the yields in both Hong Kong and China are much lower.
With prices starting from as low as £65,000 and mid range investment properties usually in the region of £120,000 - £150,000 in the suburbs, properties are a lot more affordable than
For investors whose preference is in the City Centres then Liverpool, Manchester, Sheffield and Leeds all offer attractive prices when compared to other areas in the South.
With these attractive prices also comes a strong rental demand in recent years with reports that more people are now leaving London for the North due to affordability of house prices and living.
Both public and private investment throughout the North is ongoing with huge projects such as Media City where the BBC is based being developed over the last 15 years and is set to continue. Further projects such as The Northern Powerhouse which has invested close to £13 billion to improve the transport infrastructure are all positive factors which are making the North an attractive place to invest. There are further plans too in specific Cities with the likes of Channel 4 relocating to Leeds and The Northern Gateway project in Manchester which is an investment of over £1 billion. The above is supported by the continued influx of new businesses setting up operations in Manchester as well as the 2000+ foreign owned businesses already having an established base here.
Transport Links and Amenities
The Northern Cities and in particular Manchester are very well connected from a local, national and international viewpoint. With a tram, train and bus system operating throughout Greater Manchester and Manchester Airport connected worldwide its easy to see why its attractive to companies and investors alike.
In addition to this to this are the fundamentals of good employment prospects, educational facilities, lifestyle and healthcare options all create an attractive lifestyle for living in the North. This looks set to continue with Manchester being the 3rd most visited City in the UK and over 100% increase in City Centre living between 2018 – 2019.
To find out more about property investment opportunities or the range of property services Dream Move offer, you can contact us using the below details.
+44 (0) 161 282 5558 Contact@dreammoverelocation.com