THE NORTHERN POWERHOUSE
The cities of the UK northern powerhouse are attracting a wave of property investing.
The architect, Ian Simpson, recalls when in 1996 approximately only 400 people lived in in Manchester inner city (the very inner CBD), this was around the time of the IRA bombing campaign and the hitting of the Arndale Centre.Today the city has 20,000 occupants but Mr. Simpson suggests this should push towards 200,000.
During 2014-15 Manchester received in excess of £2.3bn of commercial property investment – second only to London. By contrast the next was Liverpool with only £979m followed by Leeds and Newcastle. London is groaning under the strain due to the huge populous but one thing the Northern cities actually need is people. They are putting infrastructure in place to cope with a large population increase and London prices are driving business’s and people to look elsewhere.
Foreign Investors, who only know of London are now beginning to ask ‘where else in the UK can I invest?’ London prices are at all time highs and they are evermore seeking out value investments. Once these northern cities were just names of football teams – now they are attracting institutional investors keen to take advantage of the increased populations, there has been a huge influx of PRS (Private Rental Sector) schemes in Manchester and Leeds.
Another driving factor is the governments commitment to building the HS2 high speed rail link from London to link with various midlands and northern cities, further fuelling the potential in these northern cities.