According to Manish Chande, Senior Partner at private equity fund management and advisory business Clearbell Capital, the potential for property investment outside of London should not be ignored. In fact, based on Chande’s positive outlook, the property market elsewhere in the UK could be described as ripe for investment opportunity.
There are few with more authority to provide insight into the UK property market than Chande. With over 30 years’ experience in real estate, his longevity in this field is testament to his passion about property. With investments across a wide range of sectors, from London to Scotland and everywhere in between, Chande has a more thorough understanding of the UK property market than most. Here he offers his predictions, taking into account interest rates, the EU referendum, the London property market and the UK climate as a whole.
Chande says that the UK is taking stock after the recent recession, yet there will continue to be an undersupply of real estate ‘in many key leasing markets’, especially outside of the capital, therefore meaning a landlord’s market will be sustained. He also acknowledges that the London property market may be ‘overpriced’, but that does not mean there are a lack of investment opportunities elsewhere in the UK. With Clearbell having numerous industrial, residential, office, warehouse, retail and hospitality investments around the country, Chande proves this is true.
He remains a firm believer in the concept behind the term ‘Northern Powerhouse’, despite acknowledging that others’ faith in it has fallen by the wayside, and outlines property investment potential available elsewhere in the UK. He cites improvements to northern rail networks as something that would ‘unlock value’, and would encourage businesses to set up locations outside of London. Using the BBC and ITV’s move to Salford Quays as an example, Chande illustrates how relocation could prove lucrative; the UK’s economy was boosted by £277 million in just a year as a result.
Moreover, the rise of e-commerce has created a number of distribution opportunities outside of the capital. Warehouses need to be positioned ever closer to customers to fulfil the rising demand for instant delivery; Amazon have not long since opened their first large warehouse in the north-west. Also, the region’s rich industrial history is currently being taken advantage of, with various regeneration projects well under way as investors seek opportunity.
Interest rates are set to stay low, according to Chande, who said, ‘…the wide positive yield gap, and current rental growth potential, mean the market is able to absorb rising interest rates without a significant expansion in property yields.’ He says that, since there is a delay in the rising of interest rates, this isn’t a present concern for UK property.
It is also interesting to note the effect that the EU referendum is having on potential investment opportunities. Chande says that overseas investors have been proceeding with caution because the future is not yet known about whether the UK will choose to leave Europe; however, he predicts this will only continue until the result has been revealed. Furthermore, Chande thinks the UK will remain a popular place to invest in property, regardless of the outcome of the EU referendum, and in any case, short term buying opportunities are created as a result of investors’ uncertainty.
Chande, along with his team of 25 at Clearbell, continues to assert and take advantage of the investment opportunities available in other parts of the UK aside from London. As his success indicates, his shrewd insight has served him well in the past.
Find out more about Manish Chande below.