Bath, United Kingdom
In response to recent client requests we are proud to launch Horizon Capital International’s UK residential investment opportunity. In doing so we have selected Bath in the South West as it is a beautiful, well established and affluent British city with historic links back to Roman times. With the weakening rand clients have requested a residential investment that generates foreign currency in a stable and attractive environment. They have also indicated that they would want a property that they could occupy, should they decide to move offshore, or wish to holiday in pleasant surroundings, with good air links to SA and the rest of Europe.
There are several reasons why the timing in our view is perfect. Bath price rises have lagged the recent huge surge in London prices caused by, for example, Russian investment. This offers a second wave opportunity as prices play catch up in Bath. The British government have just announced that a new fast speed electric train is to replace the current diesel locomotive in 2017 shortening the travel time to London to under 1 hour which is already causing an increasing number of Londoners to invest in Bath as the travel time will be shorter than from a lot of London’s outlying suburbs. Work has started on the conversion at night so as not to inconvenience travellers. This gap between Bath and London residential prices is currently the biggest in recorded history. Sale periods in Bath are starting to shorten which indicates a developing stock shortage. This usually happens before a price rise. This position is similar to what has happened in the Cape Town residential market recently.
There have been favourable changes in transfer duty legislation recently and with rental yields above the cost of borrowing in most cases in Bath, there is a unique opportunity to exploit the positive yield gap. In fact at around GBP 300,000 Bath residential property yields are in the region of 5%, well above the cost of finance at typically just below 4% on this deal size, and amongst the highest in Europe, with very low vacancies. Not much new property is developed in Bath. London’s yield is a maximum of 3.5% by comparison. Recent pension fund reform will be allowing individuals to move part of their pension funds into residential property which should support prices further. Finally the recent election win by the conservative party underpins continued growth in the UK with investor friendly policies.
Horizon Capital has arranged a seamless service which includes acquisition, due diligence, funding and management of the properties which you would own directly in your own name or through a trust. Fill in the enquiry form below to obtain further details of this offering. Alternatively contact David Sedgwick or John Witter on 021 425 8586.
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