The rise of the DINK

The rise of the DINK

In 2019, there are more child free adults than ever before. While, for those born in 1946, only 9% had no children at the age of 45, whereas for women born in 1970, this figure has risen to 17%. A US study discovered that 1 in 5 women enter menopause without children. Additionally, birth rates

The rise of the DINK

In 2019, there are more child free adults than ever before. While, for those born in 1946, only 9% had no children at the age of 45, whereas for women born in 1970, this figure has risen to 17%. A US study discovered that 1 in 5 women enter menopause without children. Additionally, birth rates among women in their twenties declined by 15% between 2007 and 2012.

The reasons why so many couples adopt a Dual Income, No Kids lifestyle, commonly known as DINK, is varied. For some the financial burden of raising a child is more trouble than its deemed worth and for others, it means sacrifices to lifestyle and career aspirations. Without the responsibility of children to cater to, the rise of DINK, the demands for property are not what they were for young professionals of Baby Boomers and Generation X.

What DINK mean for the property market?

Imperial Square, Luton

ONS figures showed that in 2017 the proportion of women never having children has doubled in generation.

Leisure & Amenity

Infinity Towers, Liverpool

Young professionals today are interested the trendy new neighbourhoods. Without the pressure to consider a property’s proximity to schools and day-care the focus for many tenants now is convenience. After working all day, and in some instances earning from a second job, the Millennial generation are interested in homes which offer closeness to shops and travel links.

Work Life Balance

The Tannery, London

In 2019, the UK is more career driven than ever before. A booming economy mixed with the impending launch of HS2 and mass regeneration schemes, means over 250,000 jobs are being launched in the UK by 2030. As a result of this, generation rent is drawn to city centre properties to stay in the heart of their working life.

Student Housing Demand

Marvel House, Plymouth

In 2018, 2.3 million students were recorded to be in higher education. Entrepreneur reported that 24% intend for pay for higher education via savings and 38% plan to work during their university studies. Higher education is at an all time high since the launch of the postgraduate government student loan. As more students stay in education for longer to gain qualifications such as an MBA and PhD, often via part-time study, instead of starting families the demand for student housing will increase.

Luxury Lifestyles

Hadrian’s Tower, Newcastle

Without adhering to the practicalities of raising children, tenants are desiring homes to suit their personalities and lifestyles. For example, 2019 saw an increase in properties with pools and audio door entry systems. Favouring state-of-the-art design specifications including private lounges, the demand for luxury property is increasing across the country.

Travel Pursuits

Epic Hotel, Liverpool

A chief reason, many adopt a DINK lifestyle is the sizeable disposable income, which can be used for travel. The rise of the staycation, has seen a dramatic increase in domestic holidays. As cities within the Northern Powerhouse gain regeneration, the rise in UK’s tourism to serene areas will benefit from the child-free movement.

Entrepreneurship

The Bridge, Kirkcaldy

Among Generation Z, working to suit your lifestyle is a priority. Entrepreneur announced 41% of Generation Z intend to start their own businesses instead of continuing the Millennial trend of side jobs. The rise is e-learning opportunities focusing on creative arts and business is predicted to be worth four times more than the higher education market. As a result of this, the demand for office space will increase.

Old Age

Bryn Illtyd Ltd, Wales

Without the comfort of having children to take care of them in old age, DINK jetsetters will be desiring Care Homes in the future.

Final Note

As the economic climate changes, the demands for property respectively alters. With more favouring an enjoyable lifestyle and the financial benefits that come along, the demand for family friendly property has seen a sharp reduction.

 

 

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Neighbourhood Watch: Ouseburn, Newcastle

Neighbourhood Watch: Ouseburn, Newcastle

Ouseburn, Newcastle Once the cradle of Newcastle’s industrial revolution, Ouseburn has evolved into a beacon of creativity due to the culture-led regeneration in the city. Despite Newcastle being named one of six UK cities named a science city, an abundance of creative businesses calls Ouseburn home, welcoming an array of artists and musicians. Creative Hotspot

Neighbourhood Watch: Ouseburn, Newcastle

Ouseburn, Newcastle

Once the cradle of Newcastle’s industrial revolution, Ouseburn has evolved into a beacon of creativity due to the culture-led regeneration in the city. Despite Newcastle being named one of six UK cities named a science city, an abundance of creative businesses calls Ouseburn home, welcoming an array of artists and musicians.

Creative Hotspot

 

 

 

 

 

 

 

 

 

Ouseburn is an established creative hub, breathing new life in the factorial buildings.  A neighbourhood favourite for creative start-ups is Hoults Yard, former Victorian pottery works transformed into a complex of offices and studios. Beloved among Newcastle’s artist and creative businesses is 36 Lime Street, an affordable studio space to rent.

Social Capabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Embracing the beauty of nature, Ouseburn Farm, is a community-run farm featuring a range of flora and fauna, where visitors are encouraged to interact with the animals. To complement this, Stepney Bank Stables offer horse-riding lessons, encouraging children to enjoy the outdoors.

The Cluny, formally a whiskey bottling plant, is a bar and music venue popular on the Newcastle social scene where musicians including Mumford and Sons have played. Other popular hangouts for the Ouseburn crowd include Northern Print, Cobalt Studios and independent gallery, Artisan at the Biscuit Factory.

Rental Yields

Hadrian’s Tower, Newcastle

Ouseburn, located in close proximity to University of Newcastle, is a great neighbourhood to invest in. With an average of 8.16% in NE1 and 8.43% in NE6, Ouseburn celebrates some of the highest rental yields in the UK.

Tourism

 

 

 

 

 

 

 

 

 

 

Dedicated readers and enthusiastic writers travel far and wide to visit, Seven Stories, the national centre for children’s books. Originally a charity, Children’s Laureate Dame Jacqueline Wilson and Nick Sharratt, opened Seven Stories to the public upon moving to Ouseburn for its cultural regeneration.

For tourists interested in the historical aspect of Newcastle, Ouseburn hosts Victoria Tunnel, a preserved 19th-century wagon way under the city from the Town Moor to the Tyne.

Local Cuisine

 

 

 

 

 

 

 

 

 

Catering to students, young professionals and families, Ouseburn offers a variety of cookery. Vegans meals are served up at The Ship Inn and coffee enthusiasts will be at home at Ouseburn Coffee. Other options include The Tyne pub, The Cook House and The Cumberland Arms.

Final Note

Newcastle’s answer to Shoreditch, Ouseburn has reinvented the city as a creative epicentre alongside its scientific reputation. Mixing both rural and urban living, Ouseburn possibilities for investment are endless.

Ready to see Newcastle properties? Email us at info@tarquinjones.com for more details.

 

 

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Best Northern UK cities to invest in

Best Northern UK cities to invest in

The Northern Powerhouse continues to have the desired effect of regenerating major northern UK cities. As a result of this, investors looking for excellent Buy-To-Lets delivering on capital growth and rental returns are turning to these northern hotspots. IP Global’s latest report has listed the following as the best UK northern property hotspots- Liverpool The

Best Northern UK cities to invest in

The Northern Powerhouse continues to have the desired effect of regenerating major northern UK cities. As a result of this, investors looking for excellent Buy-To-Lets delivering on capital growth and rental returns are turning to these northern hotspots.

IP Global’s latest report has listed the following as the best UK northern property hotspots-

Liverpool

The North West of England in general is a prime property hotspot and Liverpool sits right at the heart of all the regeneration the region is experiencing. £5.5 billion has gone into the city centre alone in terms of rejuvenating the cities infrastructure, transport links and amenities. This money has trickled out into surrounding areas like Bootle and Birkenhead which combine excellent rental yields with capital appreciation- the L7 postcode alone is bringing in average rental returns of a huge 12.63%.

House prices in Liverpool have risen by 2.4% over the last year and monthly rents have risen by 5.2% over the same time period to £765. Properties in the private sector are becoming more and more popular with landlords with 26% of all homes built last year being bought by investors. This just goes to show the city is proving popular with those looking to capitalise with Liverpool set to become a true international city in the upcoming years.

Manchester

Forming part of the North West with Liverpool, Manchester is also pinned by IP Global’s report as a major property hotspot. JLL predicts rental growth to hit 16.5% over the next four years, average yields in the city are currently around 7%, with properties priced at an average £182,630 – a 10.4% rise over the past year according to the figures.

Graham Davidson, managing director at Sequre Property Investment, said: “Investors who continue to chase capital growth in the south rather than switching to the north-west may find themselves struggling not only to break even on rental yields, but to make any capital growth profit.”

Birmingham

The prospect of HS2 has played a massive role in Birmingham’s status as a UK property hotspot. Many major companies and businesses have relocated there, HSBC and Deutsche Bank being two, and as such demand for property here is incredibly high. Here, yields according to IP Global are 6.2% annually, while an average property can be bought for £200,430, which is 8.9% higher than last year.

New proposed metrolinks running in the city centre easily links it to the HS2 station and Birmingham International Airport contribute to the major regeneration happening. With big works being done to Birmingham New Street station as well, many investors are eyeing up off-plan developments at the heart of all this with huge capital appreciation expected in the future.

The Birmingham area is set to be transformed for the 2022 Commonwealth Games, so investors who buy now will be set to benefit from this added investment as well.

Leeds

IP Global’s report shows that Leeds is struggling big time to meet the ever-growing demand for property. 90,000 new homes are needed by 2021 but there are only 60,000 in the pipeline. This shortfall is only set to bump up prices even further in Leeds with the city already rising by 4% over the last year. Rental growth is expected to rise by 18.8% by 2022 as well according to research.

Yields of 6.8% can be achieved in the area, with average homes costing £196,720 and rents fetching £947 a month.

Hamish Pound, the head of investment at IP Global, said: “We advise investors to focus on supply and demand because an imbalance here is likely to provide the greatest gains.”

A common feature of all these major cities is the fact they are all big student/university towns. This only serves to increase the demand further as more and more flock to these hotspots to study and live there. Prices can only go up further because of the supply struggling to meet this sustainable growing demand.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

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Property Investment Areas – Newcastle

Property Investment Areas – Newcastle

Any regular reader of the Tarquin Jones blogs will know that we think Northern UK cities are ideal right now for property investments. The North West in particular has excellent property fundamentals and we’ve sourced heavily in the likes of Manchester and Liverpool as a result. But what about the North East? Today, we will

Property Investment Areas – Newcastle

Any regular reader of the Tarquin Jones blogs will know that we think Northern UK cities are ideal right now for property investments. The North West in particular has excellent property fundamentals and we’ve sourced heavily in the likes of Manchester and Liverpool as a result. But what about the North East?

Today, we will look at, in my opinion, one of the most overlooked yet major UK cities for property investment- Newcastle.

Booming economy

Newcastle has a rich history as one of the UK’s most industrious towns, and it’s now fast becoming a digital hub for some of the cities brightest talent. There are now almost 3,000 businesses in the tech sector in Newcastle, employing around 30,000 people. The sector here is forecast to grow by nearly a third in the city in the next three years.

A diverse and well-educated workforce, the superb connectivity and local authorities that invest into infrastructure for businesses. This is what to expect from Newcastle moving forward, and why investors want to capitalize on property there to meet the growing demand.

Major companies based in Newcastle include renowned developers Bellway, multi-national enterprise software company Sage Group, Virgin Money and Northern Powergrid.

The economic sectors employing the highest numbers of workers are:

  • Healthcare and social assistance (18.4% of the workforce)
  • Education and training (10%)
  • Retail (9.4%)
  • Accommodation and food services (8.6%)
  • Construction (7.5%)

The 2nd highest sector, education and training, leads me onto my next point…

Student city

Newcastle is one of the UK’s best university cities with 1 in 6 Newcastle residents a student, which helps shape the cities vibrant social scene and nightlife.

Newcastle is home to 50,000 students in total and boasts two of the best universities in the UK with Newcastle University and Northumbria University based there. Durham University, regularly ranked in the UK’s top 10 universities, is also a 10-minute train journey away, adding to the regions high quality educational institutes.

Student rents have seen an annual 4% rise in Newcastle and student numbers have risen massively over the years- student numbers up by 70% at Newcastle University (2000-2015) and student numbers are up by 110% at Northumbria University (2000-2015)

Investors are taking advantage of the growing number of students by purchasing high quality student deals situated near some of the major universities. With 28,035 students (64.6%) unable to gain access to student halls, largely due to the lack of supply, it’s leading many to turn to private accommodation as an alternative.

Affordability

One of the key reasons why Tarquin Jones have focused heavily on outer London property is because more and more investors are being priced out of the capital. Savvy portfolios owners are finding more bang for their buck in major UK cities elsewhere and Newcastle is no different.

Newcastle compares favourably in terms of house prices with the UK average and has higher yields from a rental perspective.

The average Newcastle property price in May 2018 was £166,338 according to Home.co.uk , which is more affordable than the UK’s £226,351 (Data.gov.uk) and much lower than London’s average which hit £305,732 back in April 2018 (The Independent).

Newcastle’s average rent is £854 per month and the average rental yield is 7.1% – compared to the UK average rental yield of 4.4% (Your Move, January 2018)

With lower entry costs that provide a regular income and good prospects of growth, Newcastle is attracting a lot of attention from first-time property investors who can’t afford the inflated London prices. Growth and returns are elsewhere right now.

Excellent transport links

Newcastle is incredibly well-connected, by road, rail, air and sea. A 2016 Legatum Institute report named Newcastle as the country’s best-connected city. It’s not hard to see why:

  • High-speed trains get passengers to London in around two and a half hours
  • Rail links connect to all the UK’s major cities
  • Newcastle airport connects to more than 80 destinations around the world
  • There are daily passenger ferries and freight services to Amsterdam from Newcastle International Ferry Port
  • The road network connects Newcastle to the rest of the UK

A low entry price, with a high rental yield, and all the property fundamentals essential to success firmly in place. Newcastle should not be overlooked as a prime location for property investment.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

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