London has been the most attractive location for foreign investors in 2017. Yet, the increase in price and volatile returns have diverted investors to seek options in some of the other growing regions in Northern England. These cities are especially attractive to overseas buyers unfamiliar with the UK property market's local issues.

These companies are looking towards cities such as Manchester – one of the fastest growing regions and largest in terms of GDP and population. Several UK offices have opened branches in Manchester, where several local universities exist.

That is important for the growing population as children in the cities require universities to study. Also, travellers are attracted to such a metropolis, which raises the demand for hotels or holiday homes, and some local homebuyers are trying to get bargains in such situations. 

In terms of rentals – West Midlands and North Wales (Wrexham) tenants are facing the greatest increase in rent, up to £150- 155 per year (Walsall), where more than 70 per cent are paying an average of £161 a year.

Some of the highest elevations in rents in the UK were seen in 2018 in St Albans (64 per cent - £424 per annum), Portsmouth (61 per cent - £316 per annum) and Leicester (59 per cent - £227 per annum). 

At the same time, the rents of commercial property dropped by 0.2 per cent (as per CBRE UK monthly index), even though the interest for office space is very high in the UK and there is a shortage of supply. 

The leading causes for such reductions in the rents of office space in some main cities and regions are - the risks of potential insolvencies of some of the leading companies, market volatility, trade war-related issues, and poor market sentiments over Brexit inflation, where the price rise was more as compared to wage. 

Several investors are searching for opportunities outside London- as London faces above-average rental growth as the demand and supply ratio has been disrupted in the region. Some buyers of commercial properties are looking for opportunities in Edinburgh, which provides opportunities in a growing hotel sector. 

Hotel and hospitality sectors in UK properties continue to expand. The new Knight Frank Research claim the number of hotels built in the year has been rising at a steady pace of 37 per cent – which has increased the UK hotel supply, and as the new proportion of the hotels is increasing, it constitutes about 66 per cent of new rooms. 

In 2018, it was estimated that about 21,000 new rooms would be opened in the UK hotel sector, which indicates a growth of 3.3 per cent. The sector is widely dominated by budget hotels, constituting about 70 per cent of the total hotel stock. The highest growth in new hotel opening was seen in London, where the increase was up to 70 per cent, and the regional markets represented 62 per cent of the total stock. 

To learn more about buying properties in the commercial and hotel sector, click Hamilton International Estates (www.hamiltoninternationalestates.com).