The Northern Powerhouse is a seven-year UK government program that has sought to revitalize economic life in Manchester, Hull, Newcastle, Leeds, Liverpool, and Sheffield. The development has the support of coalition and conservative government as well as foreign investment. China are notably active in investing in infrastructure and other phases of the program.
The term ‘Northern Powerhouse’ is reminiscent of the times when the north of England was the economic center of the country. As times changed, the city centers and the factories fell into disrepair and many were abandoned.
The Brownfield lands in the Northern Powerhouse cities are a prime opportunity for rapid profit in land investment. Returns on investment of 25 percent per year for the foreseeable future are perfectly realistic. The investment in Brownfield Land in the Northern Powerhouse far outperforms the potential of the pound against foreign currencies and low returns on bank deposits.
Every large city in the North has a huge opportunity for Brownfield land investment. The opportunity is further enhanced by the fact that there is a housing shortage in the UK This shortage is only reasonable considering the huge costs of owning a property to let.
The UK government has supported the regeneration of all inner cities in a big way. The revised Housing Bill passed in February 2017 makes the transfer of Brownfield properties between parties a much more streamlined process.
The government support is at least in part a humanitarian effort. The so-called North-South divide has been argued on the basis of economics, taxes, income, religion, language, and almost anything for more than 50 years.
There are two present day facts that are not in dispute. London and the surrounding areas receive more money for infrastructure development than the North. Income, education level, and health conditions are generally lower in the North and tied to economics.
The UK government expects to benefit from the program by seeing a general increase in tax income from business and individuals.
Northern Powerhouse land investment is much safer than owning a property. The scheme is designed to protect the individual investor. A holding company is created. The holding company handles the funds contributed by individual investors. The holding company handles all the details. Profits are distributed to investors on a pro-rata basis.
The new government regulations have
given local governments an incentive to deal with the sale of Brownfield Land
as rapidly as possible. The quick sale is good for the city and the investor.
The best-case scenario is to have a buyer ready to purchase the Brownfield
property that has been evaluated as acceptable for investment.