The Principal York Private alternative investment firm Starwood Capital Group just inked a deal to shed 14 upscale hotel properties in the U.K. in a transaction valued at $1.1 billion. The 2,638-key collection, part of the portfolio of The Principal Hotel Co., a controlled affiliate of Starwood, will be […]
Holiday lets are among the highest returning assets within the UK real estate sector, according to research from holiday property fund Second Estates.
Yields from holiday properties were 1.1 per cent higher than those for residential buy-to-let properties over the last 12 months, and higher than all other major categories, according to the property group’s study.
The average weekly income for a holiday letting was £563 last year, compared to just £191 for an average buy-to-let residential property. Even when taking into account the off-season weeks, holiday lets generate nearly three times more income than residential buy to let properties.
The student housing sector in Britain is pushing forward with innovation as investment continues to rise, reaching £975 million in the first quarter of 2018. This total follows an outperforming 2017, which saw £4.68 billion invested, according to a new report from real estate advisor CBRE identifying the biggest trends in the sector.
International investors are putting money into student housing with the UK’s main sector providers as affordability driving innovation in terms of room types and hybrid operating models, the report explains. A valuation data of 201 schemes and 58,883 bed spaces, showed a total return of 9.58% in the 12 months to 30 September 2017 and average rental growth of 2.98% nationally.
‘Student accommodation continues to perform well, attracting large scale investment from all types of investor, but with the market dominated by larger operator purchasers and portfolio sales,’ said Jo Winchester, head of student accommodation at CBRE.
You can see that the situation in the UK is delicate at the moment. A new law is being conjured by the Treasury for foreign property buyers to be restricted to only buying existing properties. Newly built homes and apartments will no longer be available for the foreign market as the need of the citizens is now absolutely paramount. But if you’re only looking to invest and/or buy commercial buildings and offices, then the UK is a prime location.