It’s no secret that the UK property market has become somewhat unstable in recent years, with Brexit forcing house builders, investors and lenders to err on the side of caution.
However, this isn’t a national problem affecting all regions in the UK. The North West and Midlands are prime examples of where the property market is booming, with economic prosperity prevailing.
In fact, thanks to growing house prices, an abundance of buy-to-let opportunities and the Midlands Engine initiative, there’s no better time to invest in the Midlands market.
House prices continue to grow
Britain’s housing market has demonstrated subdued growth over the last two years, with London and the South East proving to be a huge barrier to national growth. That said, property in both the East and West Midlands continues to rise by over 4% year-on-year.
Additionally, Birmingham and Leicester have seen the first and third biggest house price growth since the 2016 referendum, with Manchester also making the top three. For property developers and investors looking for their next big project, the Midlands could be a perfect opportunity.
Buy-to-let property hotspots
The region is home to several excellent universities, with Birmingham boasting more than 80,000 students across five institutions. With this, the demand for homes prevails thanks to a steady supply of tenants and graduates. Similarly, hundreds of people are moving from London to the city every year in search of greater affordability and exceptional jobs.
This trend is also being mirrored in other cities across the Midlands. Leicester was placed in the top 10 UK cities for landlords in a ranking by GoCompare. This is in large part down to the university and relatively low levels of unemployment in the city.
Derby is another Midlands success story, demonstrating high levels of growth in residential and commercial property in recent years. The city has seen increased local authority stimulus over the last 12 months, aimed at encouraging regeneration in the area. High quality housing sits at the core of the city’s revival, helping the city to attract new residents and boost economic activity.
The Midlands Engine
Home to more than 10 million people and 800,000 large and small businesses, the Midlands economy has huge potential. The so-called Midlands Engine is a coalition of councils, combined authorities, Local Enterprise Partnerships (LEP), universities and businesses, actively working with the government to attract investment at home and overseas.
The successful fruition of this initiative aims to deliver an enhanced quality of life for local people, creating more prosperous job and housing markets, as well as developing the infrastructure. In all, the Midlands Engine Partnership has outlined ambitious targets to grow the Midlands economy by £54billion by 2030, making the region an even better place to live, work, study and do business.
For property specialists, an economically strong, better-connected Midlands could provide the ideal opening to build more homes in diverse locations. This allows landlords to expand portfolios in areas where the demand for homes far surpasses the supply, achieving high rental yields and a great return on investment.
Without doubt, it’s an exciting time to invest in the Midlands economy. At HS Property Group, we’re thrilled to have expanded our diverse offering into this prosperous region, with developments in a number of key locations including Derby and Leicester.
If you’re interested in working with us, don’t hesitate to get in touch at firstname.lastname@example.org.