Spring Budget: Leeds to Welcome UK’s First Infrastructure Bank
Rishi Sunak made an exciting announcement in his annual Budget on 3 March 2021. The Chancellor announced the UK’s first infrastructure bank will be situated in the city of Leeds. The bank will channel billions of pounds to large scale projects and will also help tackle climate change.
Rishi stated the project will support regional economic growth and will eliminate the North-South divide. He also recognised Leeds as an established financial hub, therefore, an ideal location for the infrastructure bank. The initiative will drive UK’s commitment to reach net-zero commission by 2050 by funding sustainable projects.
Councillor James Lewis, leader of Leeds City Council agrees the initiative is a ‘vote for confidence in the city.’ “As a council, we care deeply about climate change and the environment, so it is particularly exciting our city will be at the heart of projects designed to drive forward what is sometimes described as the green industrial revolution.”
The Chancellor believes the bank will deliver world-class infrastructure through investing in sectors such as:
- Renewable energy
- Carbon capture
- Storage & transportation
- Low-rate loans to mayors and councils to fund projects
Leeds Solidifies Role as Powerhouse of Yorkshire
At CityRise, we are thrilled with the news. Not only is Leeds the proud home of CityRise, but we also believe Leeds is the current investment hotspot. The city is the cultural, financial and commercial heart of Yorkshire and continues to receive an abundance of regeneration investments. After London, Leeds is the largest legal and financial centre in the UK. The bank, first of its kind in the UK, will have an initial capitalisation of £12bn. In addition, it is expected to support at least £40bn of investment in infrastructure projects. The Treasury believes that the new institution will play a key role in revitalising the economic recovery post-pandemic.
The co-chairs of the All-Party Parliament Group for Yorkshire, Barry Sheerman MP and Kevin Hollinrake MP commented on the initiate: “It will further strengthen the city’s position as the country’s second most important national financial centre and provide a solid base for the emergence of new industries across Yorkshire and North Lincolnshire.”
Leeds is the powerhouse of Yorkshire and the North of England. We have already seen a rise in profitable investment opportunities in Leeds. The new development will not only enhance regional growth but will drive local economic growth. The project will boost employment opportunities in the city and drive capital growth in the area.
Rishi Sunak told the House of Commons – “Our future economy needs investment in green industries across the United Kingdom, so I can announce today the first ever UK infrastructure bank. Located in Leeds, the bank will invest across the UK in public and private projects to finance the green Industrial Revolution, beginning this spring.”
UK Welcomes First Ever Infrastructure Bank
It aims to replace funding previously acquired by the European Investment Bank. Previously, the European Investment Bank lent €8bn a year. The funding would reach projects including London’s Crossrail services, social housing and school-construction projects.
Chair of Leeds City Region Enterprise Partnership, Roger Marsh OBE DL said: “Locating this powerful national institution in our region will be a real catalyst for change and a major driver of our post-pandemic recovery.”
Leeds Property Sector will Continue to Prosper
The new development will have a profound effect on the property sector. Increasing employment rates and a booming economy will cause upward pressure on prices in the housing market. Therefore, an incredible opportunity for property investors. Over the last five years, property prices in Leeds have increased by 19.4%, according to Zoopla. This is a rise of £36,590. In the last year alone, prices have inflated by nearly 4%. Currently, the average property price in Leeds stands at £225,627. This is nearly £80,000 less than the UK average and an incredible £473,899 cheaper than the average property in London.
Leeds marks its spot as an incredibly profitable and affordable area to buy property across the UK. Rental demand is high in Leeds and it continues to increase as demand exceeds supply. Ultimately, the new infrastructure bank will boost rental demands further as more people move into the city for work. As a result, rental yields will continue to grow.
Secure Your Next Investment
For more information on investment opportunities in Leeds, please contact one of our Investment Consultants today. Our experts are at hand to help you through your property journey. Whether you are looking for a property to expand your investment portfolio or want to step onto the property ladder. Rest assured we will guide you through the process.
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