It’s no secret that city-centers have undergone a huge transformation over the years. If you were to walk through the centers of Liverpool, Manchester and Birmingham you will likely be confronted with an array of glass-fronted apartments, trendy cafes and an ever-growing scatter of construction sites.
There’s a reason why a huge amount of investment and infrastructure development is taking place in cities across the UK and it’s all driven by a shift in how people are now choosing to live.
Young people are packing up from the suburbs and moving into the city-centers in their droves and one big pull for them is education. If we look at Liverpool alone, its student population grew by 208% between the years 2001-2011; adding approx. 6,300 people to its already burgeoning population.
The journey doesn’t stop there, however. As new students enter the city, those who’ve just graduated now need somewhere to live as they begin their careers as young professionals. Birmingham for instance, has the 2nd best student retention rate after London with many new graduates choosing to remain in the city for higher skilled, higher paying jobs.
A general shift in attitude is also contributing to the trend. With previous generations valuing things like having more space and less congestion, young professionals are willing to forego those aspects in exchange to being closer to amenities like restaurants, bars and the ability to walk to work.
The growing demand for inner-city living puts additional stress on the already limited supply of property in the area, pushing values, and subsequently rents, higher. Good news for investors!