Is Nottingham Ripe For Property Investment?
When we think of Nottingham our minds might naturally meander towards images of medieval men in tights, or of Brian Clough in green sweater on unlikely nights of football glory. But there’s certainly a lot more to this thriving city of the East Midlands than ancient myths and visions of the Forest. And, for a property market who continue to cast their net beyond the M25 and perimeters of London, the city of Nottingham offers plenty to suggest that this is a region ripe with investment opportunity.
Burgeoning Commercial Market
As we’ve seen in our examination of the Birmingham property market, the exponentially rising cost of living in London is making certain commercial enterprises explore the possibilities of moving some or all of their operations to other regions.
With businesses such as Alliance Boots, E.On and Capital One already having a significant presence in Nottingham, the city’s profile as a region of positive career prospects is on the rise. A factor only further enhanced with this month’s announcement that London real estate company M7 were investing in commercial property in the centre of Nottingham. Not to mention media organisation Reuters plans to set up a new ‘hub’ in Nottingham as a response to the financial pressures of London-based workers.
And while London certainly remains the dominant player commercially and in the property sector, the huge gap in living costs will certainly hold appeal to those who suddenly see a genuine career path available to them more locally.
A Young City
Indeed, improved career prospects would surely add appeal to Nottingham, given that it’s a city with a healthy proportion of younger people. According to Nottingham City Council’s own figures, around 25% of the population fall into the 16 – 24 year-old category; one of the largest percentages of comparable cities in the UK.
A thriving local economy offering an eclectic range of professional opportunities – be it finance, energy, technology or media – serves only to encourage more young professionals to remain in the region. And more young professionals has a tendency to drive greater demand for affordable, quality rental property; a fact perhaps reflected in the steady year-on-year increases in the local property market.
Of course, another reason for this sense of vibrant youthfulness in Nottingham is the fact that it’s a well-established student town and home to two of the UK’s most respected Universities (Nottingham University and Nottingham Trent University).
Not only does a large student population ‘feed the chain’ of young professionals entering the local workforce (more than 18,000 students graduate each year) but their flourishing presence (in excess of 55,000 and growing) in the city offers a potential boon to the economy and additional opportunities for investors.
Indeed, back in 2015, the city council cited a need for new development of student accommodation, both to meet demand but also for the perceived boost having a vibrant student community in the heart of the city and its facilities can bring.
The landscape of the UK is changing, with regional towns and cities having to evolve and modernise in order to keep pace. With both public and private investment into the local infrastructure, Nottingham is certainly making the right noises when thinking of future prosperity.
Improved inter-city transport links and the expansion of worldwide flights in and out of East Midlands Airport is designed to add accessibility to the city while its audible commitment to energy efficient living offers clear appeal to the conscientious next generation of young professionals.
London may remain at the core of the UK’s commercial and property markets. But with progressive regional cities such as Nottingham re-invigorating their economies through a vibrant student, graduate and young professional population; supplemented by increased commercial enterprise, the opportunities for profitable property investment appear ripe for now and the foreseeable future.