Property Hot-Spots for 2016 Beyond the Capital
One of the notable trends of the past few years in the UK property market has been the increasing diversity in terms of location, with opportunities for healthy growth emerging with ever greater prominence in cities and towns the length and breadth of the country; beyond the traditional stronghold within the M25 and the City of London.
So which cities and regions are likely to offer a profitable property environment through the course of the coming year? We take a look at some of the more popular property hot-spots of the last twelve months to provide some insight into where the future potential may lie.
Investors Looking to the North
Some of the more shrewd investors have been casting their eyes beyond the Watford Gap for a number of years now, seeking some very real opportunities in the old industrial regions of the north.
Principle to this new northern interest, perhaps, has been the re-emergence of Manchester as an economic centre of some strength. Major re-generation of its centre has been followed in recent years by high-profile migrations to the region from London, not least the significant move of BBC’s Radio FiveLive broadcasting centre to a new home at Salford.
From its large student base, a popularity for young adults (a legacy of its 80s & 90s music scene) and increased development around the city, Manchester has proven to deliver some of the healthiest yields in the UK rental market in the last couple of years; a trend unlikely to abate in the near future.
However, Manchester isn’t the only city of the North that’s catching the eye of developers and investors alike. The lower capital expenditure on properties in the north of England, coupled to a continuing high demand is driving investors to the new property hot-spots such as Liverpool, Hull and Leeds. New employment opportunities and lower cost-of-living, in line with new, modern city centre overhauls, has seen younger workers stay in the region where once they may have migrated to the bright lights of big city London.
We’ve spoken before about the apparent renaissance occurring in Birmingham over recent years, and healthy investment opportunities look set to the continue through 2016 and indeed beyond.
Quite simply, there appears no let-up in new property development in the city, in line with continually high demand for affordable and good quality rental accommodation. As new businesses continue to migrate operations to the region so opportunities increase for young, upwardly mobile workers now and into the future. And with new, improved transport links, from the increased traffic at the airport to a vast rail network, culminating of course in the planned high-speed link with London – the signs are that Birmingham is going to continue to be a major property investment environment for the foreseeable future.
And the rest of the UK?
Taking a look at some key indicators such as investment in general infrastructure of a region, new business openings, improved travel links and even the emergence of some of the trendier retail and dining outlets on the high street can unearth a number of potentially unheralded areas that may be burgeoning property hot-spots for the coming months and years. For instance, using such tell-tale signs the estate agents House Simple suggested that former mining town Rotherham, subject to half a billion pounds of investment in recent years, shows potential for investment with an average terraced house available at a respectable £85,000.
With similar indicators suggesting further investment opportunities in towns and cities that may slipped beneath many an investors radar in the past – such as Norwich and Ipswich in the east, Hove on the south coast and across to Cardiff in South Wales, property investment in the UK offers healthy nationwide potential and, while London remains a market of global significance, a glance away from the capital will reveal opportunities aplenty across the regions.