Right now the Pound isn’t what it used to be. The UK’s decision to leave the EU sent it plummeting down the ranks of global currencies and it has yet to recover.
As always, there are winners and losers in every change. In this instance, the losers are people in the UK who have to import goods from overseas and are having to pay higher effective prices for them.
The winners are overseas investors who have what may be literally a once-in-a-lifetime opportunity to invest in the UK property market at what, for them are massively-discounted prices.
Foreign investors pile into Manchester
Manchester is the darling of astute property investors around the world, so it’s only to be expected that international investors are taking advantage of Sterling’s weakness to invest in buy-to-let properties in Manchester at rock-bottom prices.
Investors from some countries (especially China and Japan) are able to pick up properties for, effectively, less than three-quarters of the price their UK-based counterparts are paying.
This is encouraging them to snap up properties in Manchester’s most premium areas, especially its centre, which is the place where many of today’s young professionals (and some students) just love to be.
Investment money keeps construction going
While some may be tempted to rail at the influx of international bargain-hunters, there are two good reasons for being more charitable about it.
First of all, what goes around comes around. In other words, British property investors are now increasingly active in the international markets so it seems only fair that international investors should be active in the UK market.
Secondly, the UK construction industry needs money to keep building the new homes which everyone recognizes the UK desperately needs. In fact, it needs this money now more than ever as Brexit has increased the cost of construction.
Manchester desperately needs home-building to continue
Manchester has a particular need to continue with its extensive home-building programme as local authorities are well aware that a large part of the area’s attraction has been its combination of affordable housing, great job opportunities and an attractive lifestyle for both young people and families (and, indeed, older people).
If home-building stalls, many Manchester estate agents are predicting that house prices will rise steeply and Manchester will become less attractive to young people when compared to competitor cities such as London, which also have a great need for skilled workers.
UK investors still have plenty of opportunities
UK investors still have plenty of opportunities to invest in Manchester, both the city and the Greater Manchester area (as well as other parts of the North West) and can choose between traditional residential buy-to-let and commercial property, especially purpose-built student accommodation.
Manchester is in great need of all forms of property, especially as the city expands into new areas such as Wythenshawe. This is currently one of the most attractively-priced areas of the city, but is set to benefit greatly from the development of Manchester airport (with the entire new infrastructure this will bring) and definitely has the potential to be the “new Salford”.