With the pound at a 31-year low, investors from across the world are clamouring to acquire British assets now, especially in UK’s number one investment city…
It times of economic volatility at home, South Africans have long turned to the pound to hedge against rand fluctuations. But the pound is currently at a 31-year low – and this has created an immediate investment opportunity that property investors should react to sooner rather than later.
UK property just got 17% more affordable
The vote for Brexit in the EU referendum created a degree of uncertainty in the country’s financial markets, simply because no country has ever voted to leave the Union before. While Britain’s strong economic fundamentals remained unchanged, the pound fell by 12% against the dollar overnight.
Then in October, as new Prime Minister Theresa May announced that she would invoke Article 50, the legislation that will begin Brexit negotiations, in March next year, the pound was hit again, this time falling to 0.8 against the dollar, a 31-year low. At the same time, the rand jumped to 0.058 against the pound, the highest it’s been for the whole of 2016.
Crucially, this was an eventuality that was well prepared for. The UK’s key economists had predicted and prepared for a short-term period of uncertainty in the months following a vote for Brexit, before its economy grows once all uncertainty has been removed.
In the meantime, though, there’s arguably never been a better time for investors to buy UK property. For South African investors, the buoyance of the rand means you can get more pound for your money, but the renowned volatility of the rand means that this could change quickly.
Buying British real estate just got 17% more affordable. And there’s one city in particular that has established itself as a hotspot for investors looking to make the most of this opportunity.
Manchester: Home of the UK’s highest yields and one of most undersupplied rental markets
For years London has been the go-to UK destination. The country’s financial heart. Luxury homes. Huge rates of capital appreciation.
But London’s growth cycle is ending. In October it was revealed that investment in the capital has fallen by 36%, as those high prices have created an affordability ceiling for many investors. South African investors have seen this more than most, with the high average cost of a London property exceeding the limit they are permitted to move out of South Africa in a single year.
Instead, many international investors are heading north-west to Manchester. The city is currently home to the UK’s highest yields, and investors can achieve average annual returns as high as 8%, according to HSBC.
Above all else, Manchester boasts one of the biggest investment opportunities for UK property investors. At a time when more Britons are deciding to rent rather than buy, a generational shift being driven by young workers, Manchester has one of the youngest populations in the country. Over 60% more 25 to 29-year-olds live in Manchester than the UK average, and 80% of the city’s population privately rents.
4,000 new rental units are needed each year to keep up with this growing demand from tenants in Manchester, according to the local city council. But just 1,417 annual units are set for delivery over the next eight years, highlighting a huge demand to supply deficiency.
Affinity Living Riverview: Move now and secure one of the best long-term investments in the UK’s number one investment city
In the last two years Select Property Group has seen a 200% increase in the number of South Africa’s that have invested with them. And the Group’s latest investment presents not only an opportunity for more of the country’s investors to capitalise on the pound’s current performance, but to also be a part of the UK’s rental market revolution.
Affinity Living Riverview lies in the heart of Manchester, just minutes’ walk from the city’s key shopping and business district. 318 purpose-built rental apartments in a 35-storey development that will be among the top five tallest buildings in Manchester and will boast the city’s highest roof terrace.
A fully equipped gym, cinema room and live/work lounge are among the exclusive amenities that, along with industry-leading levels of management, will drive tenant satisfaction and occupancy levels.
Investors in Affinity Living Riverview can be guaranteed 6% NET yields assured for two years, and a fantastic payment plan which requires just a £5,000 deposit.
For more information about Affinity Living Riverview, please follow this link and one of Select Property Groups expert property consultants will get in touch.