When it comes to investing in property, selecting the correct area is amongst one of the largest components that determine your success and returns. There’s a wealth of factors to consider, but futureproofing your investment based on the growth and regeneration of an area is crucial.
New research carried out by regeneration based property developer SevenCapital, has highlighted the top five areas in the UK outside London for investors to consider when it comes to futureproofing their portfolios and strategies.
There’s a reason why the old adage of ‘location, location, location’ is long-standing as a key consideration for investors when researching their next investment – and it has perhaps become even more important as a result of COVID-19 and the changing lifestyles and priorities this has triggered.
For investors seeking to purchase at a reasonable price and reap the rewards of high yields and capital growth in the future, locations undergoing significant regeneration projects are typically a good place to start.
Huge regeneration projects are partly driving factors in employment opportunities, which helps to bring new prospective tenants from further afield into these areas; thus securing demand for your investments.
Areas such as Sheffield, Birmingham, Leeds and Slough, are all highlighted by SevenCapital as some of the best areas for regeneration where investors should be pointing their attention.
Also included in this top five list is Manchester, which as we know all too well is currently undergoing an extensive plethora of huge sum development opportunities.
One of the birthplaces of the Industrial Revolution, where it moved quickly from a small town to a thriving, teeming city, Manchester has continued to punch above its weight in recent years – and is regularly hailed as one of the best buy-to-let hotspot. In addition, the number of well-regarded universities within our region offers the highest driving factors in securing Manchester’s student population as one of the highest in the country; providing expansive scope on the student-let side of things.
Prices tend to be affordable, while yields and capital gains are strong. As always, there are two sides to significant regeneration, with some complaining that it pushes existing residents out in favour of wealthier ones, and leaves cities full of half-empty luxury tower blocks – a theme explored in the recent BBC2 documentary series Manctopia: Billion Pound Property Boom.
But, as that show highlighted, the city has seen a vast array of regeneration projects over the last 20 years to haul it out of its post-industrial slumber. Perhaps the most notable being Spinningfields, a £1.5 billion regeneration project dubbed the ‘Canary Wharf of the North’.
The largest of the city’s regeneration plans include the £800 million NOMA project in the north of the city, set to transform nearly four million sq ft into office, retail, and leisure space, plus the £1 billion proposal to regenerate the Ancoats and New Islington areas of Manchester.
Additionally, there are plans to renovate three key train stations – Oxford Road, Piccadilly and Victoria – bolstering the faster connectivity across the city and religion.
Regeneration is all about placemaking; transforming an area into somewhere that is attractive to the public as a place to enjoy living, working, socialising, and relaxing. That includes having the right infrastructure to improve connections to key locations, for commuting in and out. All of this is what helps to attract and increase demand from tenants, which is key to a successful investment.
For more information on what to look for in securing futureproofed investments, give us a call on 0161 883 2525.