FAQs

       

Frequently asked questions about property investment

What’s the best sort of property investment for me?

There is no single right answer to that. Every investor comes to us with a different set of constraints and priorities, and their own particular attitude to risk. Consequently, a project might be ideal for one investor but wholly inappropriate for another.

Our job is to understand all those personal differences and provide a thoroughly researched ‘matchmaking’ service; identifying which development(s) will best suit each investor.

What sort of research do you undertake?

We devote considerable time and resources to investigating each property and each local area; not just the wider region in which the development sits. That research examines factors such as the supply and demand for property, local price trends and anything that could affect future demand for housing. Examples might include population growth or factors that could drive new job creation, such as inward investment, economic expansion and relocations by major employers. We publish regional investment guides, city guides, investment prospectuses and other relevant reports.

How does ES1 choose investment properties?

We work with a number of well-established property development businesses and we maintain a large database of current (and forthcoming) developments. We only promote properties in areas that we have researched and evaluated. Before we list them, we must be convinced that they offer good and realistic prospects of delivering strong rental growth, impressive yields and longer-term capital appreciation.

Where are you based?

Our office is based in Central London, in the heart of the financial district in the City.

Is it worth using a rental management agent?

In our experience, it’s an option that suits most investors. Many of our clients have full-time jobs so they don’t want to have to spend time dealing with tenants, bills, rent collection and safety checks. By leaving all that to an agent, you can minimise demands upon your own time and concentrate on other things.



The service comes with a fee, but it’s deducted at source. And importantly, a rental management agent will typically be far better positioned to advertise the property effectively and maximise its occupancy. Even after deductions, that normally translates into better returns overall.



One other benefit is that using an agent enables you to invest wherever the opportunities are most promising. Managing a property yourself typically restricts you to investing in your own local region, but using an agent gives you access to the whole of the UK market.

What type of tenant will I get?

All our investment properties are modern, high-spec and energy efficient, appealing to professionals, young families and retirees.

Where are the best property investment opportunities?

There are good property investment opportunities to be found right across the UK. We have supported projects from Scotland to the South Coast of England, and our database is updating all the time. However, in recent years, we’ve seen a growing tendency for properties in the UK’s most affordable regions to produce the best returns in terms of rental growth, yields and capital appreciation. Performance varies because each property and each location is different, but we’ve seen some excellent results in smaller towns and cities, particularly in the Midlands and the North of England.

What is more important: yield or capital growth?

Investors have different priorities and objectives, and it’s our role to find them whatever developments offer the best chance of achieving them. The short answer is that they’re both important and, typically, we choose developments that offer excellent potential for delivering both.



Right now, capital growth rates are slow in most parts of the UK, so investors are tending to see the best results in terms of rental growth and yields. However, market conditions are likely to improve steadily and, in the longer-term, capital growth is likely to return to its traditional upward trend.

Do I need a solicitor?

Yes, we would strongly recommend working with an experienced solicitor when making any purchase. If you need an introduction, we work with a panel of solicitors who are experts in the property investment sector and who already know ES1 and our developments. They will be able to guide you through the legal aspects of your acquisition, making the process clear and comprehensible.

How do I know I’m paying a good price?

Every property that we list has been valued by an independent RICS-qualified surveyor.

Can I visit a property before I decide?

Yes, you can make an appointment to visit any development. However, bear in mind that some projects are new-build or off-plan conversions, so they will not all be close to completion. Others will be ‘live’ construction sites with safety restrictions in force. For such schemes, we provide detailed literature about the location, the property, the individual rooms and other issues, so you’ll have plenty of information available.

Up to what age can I get a mortgage?

Currently, you can get a buy-to-let mortgage until you are approximately 75 years old. The mortgage is based on various factors such as rental income.

Do I have to find my own tenant?

You’re welcome to manage your buy-to-let property in any way you like. That could include marketing the property yourself, finding tenants and handling the day-to-day maintenance. Some clients do this routinely. However, the majority of our customers don’t want to work as part-time or full-time landlords, so they use a rental management agent to take care of many routine tasks. That work can include marketing the property, maximising occupancy and handling regular rent collections.

Do I have to pay any fees separate to my investment?

Our fees are paid by the developers, so clients benefit from our extensive experience, research and support throughout the purchase process at no cost. If you choose our rental management service, our partners, DH Management will charge a percentage of the rental income in return for managing your property and tenants.

Should I focus on yield or capital growth?

Yield and capital growth are both important factors, and different investors have different priorities.

All our investment properties have the potential to achieve good, sustainable rental yields, together with the potential to rise considerably in value over the medium to long term.

I want to invest. What do I do?

When you’re ready to take the next step on your property investment journey, speak with one of our experts about your financial goals. Based on your goals and circumstances, we will identify the opportunities that best match your needs.

To speak to one of our Senior Consultants, call us on 0203 695 6729.

How does ES1 choose which developments to work with?

We have worked with our trusted development partners for many years, bringing thousands of properties to the residential market. We only focus on areas with strong rental demand and capital growth potential.

Where are the properties?

We select properties in high-growth, regeneration areas across the UK.

If I decide to invest, what do I do next?

When you’re ready to take your next step, please contact us and arrange to speak to an advisor. We can then discuss your goals and circumstances before setting things in motion.

To speak to one of our expert advisors, please call us on 0203 695 6729