Clifton Park ViewRotherham
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In 2015, the government launched its exciting ‘Northern Powerhouse’ proposal. The strategy focuses on boosting economic growth in key northern cities of England.
Particularly within the ‘core cities’ of Manchester, Liverpool, Leeds, Sheffield and Newcastle. These roaring cities attract countless investment opportunities from property investors across the globe. The Northern Powerhouse initiative focuses on enhancing several key aspects of the economy. This includes upgrading transport and infrastructure, in addition to investing in science, innovation, and technology.
The property market in the North is booming now more than ever. In fact, market activity is skyrocketing and capital growth in the region continues to climb. Major visionary schemes such as the Northern Powerhouse Rail and HS2 are being welcomed into the region. The HS2 is the first new north-south railway in this country for over a century.
An Investment Strategy
With a solid investment strategy implemented, the North could benefit from an annual £97bn increase in GVA. Providing an additional 850,000 jobs by 2050, according to the Strategic Transport Plan and the Northern Powerhouse Independent Economic Review. Improved rail services provide better connectivity to major cities. Therefore, enhancing the quality of life, which plays a vital role in economic growth.
Improving local roads and national rail networks boosts the value of properties within the area. As a result, commuter towns are becoming exceedingly popular for tenants and investors alike. This is because low property prices are coupled with high rental demand.
Improvements in infrastructure will attract more businesses and skilled professionals to the city, thus boosting economic prosperity and property prices. Consequently, the revitalisation will boost the liveability in the North, solidifying the region as a prime investment location.
Key advances in technology and broadband width enhance the desirability of any location. Digital connectivity, including wired, wireless and satellite connections are key components home buyers consider before making a property purchase. Many cities across the northern regions have benefited from the widespread installation of 5G networks.
During this pandemic, digital channels drove the market, with virtual viewings and online meetings to keep the market afloat. Excellent digital connections in the surrounding area are crucial, ultimately it is because of great connectivity the UK was able to work and study remotely. As a result of invigorating the region, the market is showing signs of attracting wealth from the South East up to the North.
Business Giants Boost
The Northern region continues to dominate, and it is not just attracting investors. Influential businesses are also seeing the true potential and value of the North. Some of the UK’s most powerful businesses such as the BBC, Channel 4, KPMG, and Burberry are slowly shifting their headquarters here. Thus, joining the likes of Asda, Morrisons, Adidas and the NHS. Furthermore, the UK government announced it will be moving an additional 6,000 jobs to its new regional hub, situated in Leeds.
All this additional investment and business activity have brought with it a large degree of excitement. The north of England is most definitely challenging London’s traditional dominance of the market. Ultimately, this has had a profound but positive effect on the property market. In 2019, UK house prices grew by an average of only 1.7%, whilst the five Northern Powerhouse cities boasted annual increases of over 5%.
Prices continue to grow with speed in regions with a higher percentage of affordable homes. UK’s key regional markets, Yorkshire and the Humber and the North West are demonstrating the strongest house price growth rates. Here, prices are climbing by 5.3% and 5.2% respectively. In comparison to the northern regions, London, home to the most expensive properties in the UK has only shown a slight growth of 2% over the year.
First-time investors and seasoned investors can purchase a property in the north with a much smaller budget. In terms of rental demand and the success of a BTL investment, the north is still the ideal area to invest.
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