For the first time in decades, the property market in regional cities, specifically in the North and Midlands, are outperforming London and the South East.
Keystone Property Group are committed to sourcing high-quality property investment opportunities across the UK’s regional hotspots.
Here’s a snapshot of the property market across some of the regional areas, where we have a presence:
There are 5065 residential units under construction in the UK’s second largest city, the highest number recorded in 17 year of Deloitte’s Regional Crane Survey.
In 2018 1,700 units were completed, and this year Deloitte expect that figure to rise to almost 3,000.
Major infrastructure projects are fuelling demand with HS2 set to arrive by 2026, and construction on the athletes village for the 2022 Commonwealth Games due to start soon.
Rental demand is growing due to a large student population and rising workforce needing a place to live, especially while the city’s two big infrastructure projects get underway.
Residential construction is at a record high in Manchester with Deloitte’s Regional Crane Survey revealing that nearly 14,500 residential units were being built across the city in 2018, up 30% on 2017.
The number of units actually completed and delivered stood at 2659, the highest number recorded since 2006. In total there are 78 sites currently under construction in the city.
The city’s property outlook is set to remain positive as its economic prospects look healthy, 2018’s Annual Economic Forecast from EY predicted that employment in Manchester will grow at 1.2% between 2018 and 2021. The strong economic performance is reflected by a gross value added (GVA) of 2.2%.
One of Europe’s fastest growing cities, since 2015 Manchester’s population has risen by nearly 6%. An impressive 70% of graduates of Manchester universities stay in the city post-graduation, and 36% of people from Manchester who studied elsewhere return home after graduating.
According to research by One and Only Pro, the best university towns or cities for property investment are located in the North and Midlands. Newcastle came out on top with 12.8% of properties found to have ‘Diamond’ investment status by One and Only Pro’s unique algorithm.The average ‘Diamond’ property in the city costs £96,573.25.
In 2017 renting was on the rise in the city with properties on the market for rent surpassing the number for sale, at a ratio of 51:49. And since the UK’s vote to leave the European Union the average monthly rent in Newcastle has risen by 17.7% to £713 per month.
Sheffield and South Yorkshire
The Sheffield City Region’s economy is expected to grow £3 billion by 2025. And it has everything it needs to attract serious business investment, including: a business friendly environment, a highly skilled workforce, and room for growth.
Over the last few years, the region has welcomed investment from world-leading companies. In 2018, Boeing opened its first manufacturing site in Sheffield, creating more than 50 jobs and apprenticeships.
The same year, McLaren Automative opened a composite technology hub at the University of Sheffield’s Advanced Manufacturing Centre, which is estimated to provide around £100 million for the local economy by 2028.
With expected population growth of 15% by 2035, demand for homes in and close to the city centre is likely to remain strong, making property in the region a good investment for a long time to come.