Although there has been plenty of speculation within the property market in recent years, there are still various areas across the UK that are continuously performing well and look to perform well in the long term as well. With the London market flatlining since it’s price surge and the uncertainty of Brexit under everyone’s mind, it is crucial to understand the entire market when considering property investment.
Birmingham was described by PwC as the UK’s most investable city. There are various reasons why Birmingham is a hotspot for investment. Firstly, HS2 will dramatically reduce journey times to London- thus it is likely to have a huge impact on the Birmingham market. It will attract more major employers and young professionals with them – a trend that is already occurring with large companies such as HSBC and Deutsche back relocating many of their current employees. Additionally, Birmingham will host one of the world’s largest sporting events – the Commonwealth Games, in 2022. It is expected to generate around £750million for the local economy and leave behind a wealth of benefits for the area.
Manchester is a city that is already well known for its successful property market. However, it is likely to continue to be a property investment hotspot as housing supply significantly underperforms compared to government and council targets. Manchester also has plans to improve transport infrastructure, particularly with the tram system. Tram lines are expected to be expanded to various areas such as to Media city (a popular area for large employers such as BBC, ITV and Bupa) and the local airport. Manchester also has a steady stream of young professionals through recent graduates. 36% of Manchester born graduates return to their home city and 69% of those who graduated within Manchester decide to stay on.
Liverpool recently topped Home track’s UK Cities House Price Index and includes 5 of the country’s top 20 postcodes in regard to rental yields. Liverpool is also set to benefit greatly from the Northern Powerhouse Scheme – a government agreement to invest in previously underinvested regions, mostly in the North West. Large regeneration areas such as Liverpool Waters will increase retail, leisure and residential infrastructure. This is set to cost around £5.5billion – the largest regeneration scheme outside of London. Plans for transport improvements have also been placed, with a new line to Manchester which will connect Liverpool to HS2 and the John Lennon Airport expanding extensively recently.