What’s driving the surge in interest for British real estate among South Africans?
Select Property Group has recorded an 89% increase in enquiries and 75% uplift in purchases made by South African-based investors since 2014, as it plans to continue making regular trips to the country to support its growing base of clients.
Why now is a good time to acquire UK property
- June 2016’s vote for Brexit caused the pound to fall to a 30-year low – and helped the rand to appreciate 35% in value against sterling. It creates an immediate opportunity for South Africans to acquire British assets with greater affordability. But with a status as a rand-hedge, don’t expect the pound’s loss in value to be permanent, meaning you need to act sooner rather than later.
- The UK is deep in the midst of a housing shortage. An additional 300,000 new houses are needed each year to keep pace with demand from the country’s rising population.
- International investors are also reassured by the country’s renowned legislative framework that underpin the security of its real estate sector. The UK’s Land Registry gives buyers from all over the world a high level of assurance and confidence. On a wider basis, UK law has an established reputation as a primary centre for international and commercial litigation and arbitration.
Why South African investors buy UK property with Select Property Group
Select Property Group is a developer, retailer and operator of market-leading UK property investment brands.
Why international investors choose us
Investors from 117 countries trust us with their funds because, uniquely, the Group controls every aspect of the investment lifecycle: we develop, we sell, we manage.
And, thanks to our expert Investor Relations team, we bridge the 7,000 mile gap between South Africa and the UK, offering investors complete support every step of the way.
Investment brands in the UK’s best performing property sectors
UK student property
The UK is renowned for the quality of its universities around the world. 438,015 international students made up the total 2.28 million students that studied at UK higher education institutions in 2015/16.
Yet the standard of traditional university accommodation is widely viewed as largely inadequate or of poor quality.
It’s this outdated supply, combined with the rising demand for purpose-built student accommodation amongst today’s students, that’s made student property the UK’s highest-performing asset class.
The sector has already grown by 37% since 2014, and Knight Frank believes the UK’s purpose-built student property market will reach a total value of £45.8bn by September 2017.
Vita Student – Select Property Group’s student property brand
- The UK’s only experience-led student accommodation provider
- Located in Britain’s highest yielding student property cities
- Over £39 million paid out in rental income to global investors in just four years
- Properties available with 5-year rental guarantees, fully managed and hassle-free
UK residential property
The demand for rented accommodation has increased by 17,500 every month over the past decade, and the country’s private rented sector is now at record size.
Changing attitudes towards ownership are driving this shift towards rented living, and the change is most noticeable among young people. Almost 60% of 20 to 39-year-olds will be privately renting by 2025, with a total of 7.2 million households in the private rented sector.
And, with one of the youngest populations in the country and a new housing delivery level that will meet just 25% of annual demand by 2022, Manchester is the hotspot for UK residential investment.
Rents in Manchester are predicted to grow 20.5% by 2021 (2.9% faster than the UK average), while average property prices are also forecast to rise 28.2% over the next four years (15.1% faster than the UK average).
Affinity Living – Select Property Group’s residential property brand
- Affinity Living
- A residential property investment brand created for the UK’s evolving private rented sector
- The finest residences located in the UK’s top investment cities – including Manchester
- Properties available with guaranteed yields 50% higher than UK average
- Fully managed and hassle-free
Select Property Group in South Africa
With a growing number of South Africans in our global investor community, we send our UK property experts out to South Africa multiple times a year, meeting our clients across the country.
Additionally, we’ve held five UK Property Masterclass seminars in Johannesburg, Durban and Cape Town in the last two years, in association with Real Estate Investor Magazine and Sable International.
Moving your money out of South Africa
Select Property Group partners with Sable International, experts in helping South African property investors move their money overseas. With over 15 years and in excess of 140,000 transactions per year, Sable’s service provides an effortless solution for anyone considering investing in British real estate.
Contact us for more information
To find out more about our latest UK investment opportunities, contact one of our expert property consultants today:
+44 (0)207 123 4000