- As London renters leave an expensive market, they’re looking to the Midlands and the North
- The North has seen some of the highest price growth over the last 12 months with an average of 6.5%
- Commuter Belt property has risen by 313% over the last 20 years, while the South East is forecast to be the fastest growing region in the UK by 2022.
- Birmingham is the heart of the UK – forecasting 14% growth in the next two years.
As the beating heart of the UK, the government is investing in The Midlands with the vision to become the ‘growth engine’. Driving professional, commercial and residential opportunities with huge infrastructure changes and a variety of upcoming developments, The ‘Midlands Engine’ is pushing ahead with Birmingham at its core.
The West Midlands has seen great success in the employment sector over the last five years, with workforce jobs increasing by 110,000 during 2017 alone. The region is home to 50% of the UK’s industrial stock and plays a critical role in the UK’s supply chain, thanks to a central location and unrivalled links with the rest of the nation.
Birmingham has seen particular interest from investors thanks to the transformational ‘Big City Plan’, a project that is looking to provide commercial, office and residential space as well as excellent lifestyle and infrastructure improvements. The ‘Big City Plan’ will revitalise different quarters of the city, creating brand new destinations to live, work and play.
With Birmingham property currently providing excellent results in terms of property price growth and rental yields, the second city is also expected to see a population boom. The completion of HS2, as well as Birmingham’s status as the top destination for London renters moving from the capital means Birmingham could become the ‘UK’s first Commuter City’, attracting talented workers, young professionals and families seeking affordability.
INCREASE IN RENTAL INCOME FORECAST FOR 2023
FORECASTED PROPERTY GROWTH INCREASE BETWEEN 2018 AND 2023
AVERAGE RISE IN RESIDENTIAL PROPERTY VALUE SINCE 2009
PREDICTED RISE BY JLL IN BOTH SLOUGH & MAIDENHEAD BY 2020
One of the prime targets for renters leaving London for the commuter lifestyle, 46% of Slough’s homes are let to tenants moving from the capital. Slough is recognised as a commercial powerhouse with excellent employment opportunities driving tenant demand. Combined with the large-scale ‘Slough Urban Renewal’ (SUR) project delivering new developments and Crossrail putting London just a stone’s throw away, this commuter town has exceeded property price predictions over the last five years.
In 2015, JLL predicted a rise of 26.4% in both Slough and Maidenhead by 2020. However, current Zoopla data shows Slough’s average property price sits at £399,727 – a 56% rise that exceeds JLL’s prediction.
A relatively new Buy-to-Let investment hotspot, Bracknell is experiencing increased tenant demand thanks to incredible commercial occupiers and a legacy as a key tech sector destination. With a broad plan of regeneration leading up to 2032, Bracknell is investing in its residential and commercial future. Home to a population of over 120,000 predicted to grow by 10% over the next two years, Bracknell property prices have seen an increase of 249% over the last 20 years.
Bracknell is also a leading destination in a South-East that is forecasted to be the fastest-growing UK region by 2022, predicting a cumulative increase of just under 10% over the next three years.
PROPERTY PRICE INCREASE OVER THE LAST 20 YEARS
PRICE RISE BETWEEN 2005-2015 & IS SET TO CONTINUE TO RISE
With a thriving employment sector and regeneration projects in the pipeline, Basingstoke is reaping the benefits being felt across the Commuter Belt. Home to global brand HQ’s including Lenovo and Motorola, Basingstoke is recognised as one of the best digital economies in the UK. Over the last decade, Basingstoke has seen property price rises of 31%. As a key destination in the South East, this growth is predicted to continue as the region takes it place as the fastest-growing area in the UK between this year and 2022.
“With a year to go before the Elizabeth Line becomes operational, homes close to Crossrail stations are already reaping the benefits with average house prices outgrowing the surrounding areas” – Andrew Mason, Lloyds Bank Managing Director
Looking at the wider UK market, the North performed excellently, peaking with property price growth of 6.5% over the last 12 months. With a combination of rising rents and excellent growth, the North-West in particular has recorded the highest rental yields in the country hitting 5.1%.
The region is also hugely popular with tenants. Key cities such as Manchester, Leeds, Liverpool and Sheffield are top destinations for people leaving the capital, a number that hit 291,620 in 2016 compared to 36,480 in 2012. This number shows the appetite for quality rental opportunities in the North, as London renters look to escape unaffordable prices.