Charting the evolution of the UK’s residential property market
- 27 Aug 2019
- Company News
In 2004, Experience Invest was founded to assist investors seeking opportunities in the UK real estate market. Since then, we have sold over 10,000 properties to investors from around the globe, ranging from residential buy-to-let to purpose-built student accommodation and hotels.
At the time of our launch, demand for real estate across England was resoundingly high. In response, Experience Invest sought to meet this demand by working with private developers and investors to deliver state-of-the-art new-build properties.
Over the following decade (2005 to 2015), huge year-on-year price growth resulted in the value of the UK’s housing stock skyrocketing by £1.4 trillion to reach £5.8 trillion – higher than the combined GDP of France, Germany and Italy. This figure is all the more impressive given it also takes into account the housing market recovery, which took place in the aftermath of the global financial crisis of 2008.
By the end of 2015, average house prices in London were 50% above their peak in 2007 – an impressive rate of capital growth few assets could match. Nonetheless, the sharp rise of house prices in the capital resulted in more first-time buyers, buy-to-let investors and renters struggling to find affordable housing in London.
Commuter towns rise in popularity
Experience Invest sought to support the changing needs of professionals working in London, and those investors seeking an income-generating rental property. To achieve this, we focused our attention on Luton – a commuter belt town with quick transport connections to London.
With £1.5 billion of investment being deployed to regenerate the town, Experience Invest identified Luton as an area well positioned to deliver sustainable house price growth, and affordable living conditions for London professionals. For this reason, Experience Invest will be delivering projects that will equate to a gross development value of £186.1 million over the next few years.
Working alongside Opto Property Group, there are standout two developments Experience Invest has been involved with in Luton. The first is New Bedford House – an £8 million residential complex boasting modern one and two bedroom apartments which was completed in Q1 2019, and the second is Imperial Square – a selection of stylish apartments located in the heart of Luton’s town centre which is currently open for investment.
The kings of the north
However, our efforts have not just extended to London’s commuter town. Over the last decade, demand for residential property has rebalanced to the north of England, and this has resulted in a spike of construction activity in places like Liverpool, Newcastle, Leeds and Manchester.
As well as more cranes on the skyline, the surge in demand for real estate has meant house prices in the north have been rising at an impressive rate, flipping the south’s traditional dominance of the property market, which had characterised the opening decade of the 21st century. In the 12 months to April 2019, for instance, the average house prices in Liverpool, Newcastle and Leeds increased by 5.7%, 3.4% and 3.1% respectively. In comparison, London’s rate of house price growth flatlined at 0%.
To meet rising demand for residential properties in regenerated towns and cities, Experience Invest has partnered with developers to ensure real estate remains accessible to as many people as possible. New-build constructions are vital to meeting this demand, and as a consequence, there has been an increase in interest for newly constructed properties. According to Savills, viewings and applications for new builds were up by 35% in Q2 2019, when compared with the same period in 2018.
From student accommodation in Newcastle to hotel suites and residential buy-to-let apartments in Liverpool, Experience Invest ensures its investor have access to a diverse range of property opportunities whatever their investment strategy might be.
Looking to the coming years, house prices in the UK’s north and commuter towns are projected to rise still further, and this in turn means more investment will need to be directed into new-builds to meet this demand. Experience Invest will be drawing on its experience over the past 15 years, ensuring buyers and renters alike have access to state-of-the art properties.
As part of this commitment, we’re excited to announce that Jerald Solis, our business development and acquisitions director, will be taking part in the Cityscape Global in Dubai from 25 to 27 September, offering the opportunity for investors in the Middle East to get involved in the UK property market. If you’re attending the exhibition, be sure to come and say hi to the Experience Invest team – our stand number is H4.C20. Alternatively, click here to find out more about the event.