British properties are always appealing due to high yields and returns, coupled with a strong, growing economy. According to Knight Frank’s October UK residential market update, whilst most of Europe is “struggling to regain some sort of economic normality”, the United Kingdom’s economic growth will outperform many others.
“Malaysians continue to be locked out of the housing market”
Malaysia, on the other hand, appears to be in a bit of a housing crisis. Accommodation and mortgages in the country are too high and unaffordable for many. American urban development research group Demographia recently reported that “Malaysians continue to be locked out of the housing market” by expensive prices.
The East Malaysia Daily Express even estimated that property costs have not stopped growing since 2004. Without the solid investment of a house, many Malaysians have had to look at other options to secure money for the future. Property shows such as iProperty are always popular, as they offer such lucrative property investments.
Knight Knox International was promoting Eastbank in Manchester, Sovereign House in Sheffield, and X1 The Studios in Liverpool at this show. These three Northern cities have recently been subject to a lot of infrastructure investment, bringing more people to the region than ever. From 2001-2011 Sheffield saw a 7.5% rise in population, Liverpool from 441,900 to 466,400, and most impressively Manchester welcomed 80,000 residents from 422,900 to 503,100. These figures prove how large the growth of regional locations can be.
Rents in the Northern region are also rising. The latest statistics by Reeds Rains and Your Move show rent prices are at an all-time high. David Newnes, the of director the company, noted the success of regional locations in particular, “Regions with a new charge of economic growth, like the North West or East of England, have now led annual rental growth on an equal basis with the capital for most of this year. London’s rents were rising by 8% at the start of 2013 but are now climbing at around a quarter of that pace”
Liverpool, Manchester and Sheffield all now offer impressive returns, as rents are growing at a greater rate to house prices, as proven by the Totally Money buy-to-let hotspot map.
Unfortunately the high cost of property in London means yields are minimal.
If you are interested in hearing about the regional investment opportunities Knight Knox International offers, they will be in attendance at the SMART Investment and International Property Expo in Hong Kong, from the 22nd to the 24th of November.