At a time when there is a push for more housing development across the UK than ever before, identifying key areas of the country where there is potential for construction and the delivery of much needed new homes is a key strategy.
And now, a new report has laid out a number of regions outside of London where economic fundamentals appear to suggest there is a strong potential for thriving new developments and for investors to make a good return on their spends through new properties being delivered.
An analysis from international real estate firm Knight Frank and planning consultancy Barton Willmore names a number of cities across England as being primed for new developments, both for purchasing and to move into the rental market, and a number of those with the highest potential are in the north of the country.
Leeds, Manchester, York and Durham all feature high on the list of places where investment in homes could pay dividends, thanks to growing numbers of jobs, more companies moving to their cities or even a swell of students in the past few years, all of which can see a real rise in the demand for quality homes.
Birmingham, Nottingham, Warwick, Leicester, Brentwood, South Cambridgeshire, Bristol, Bath and North East Somerset, Exeter, Cherwell, South Oxfordshire, Guildford, Reigate and Banstead, and Tunbridge Wells were all also identified as areas where development could have potential for real growth and strong returns.
Justin Gaze, joint head of residential development at Knight Frank, said more developers and investors than ever before are now setting their sights on property development away from London.
“Increasingly, our clients are looking at regional cities and districts for future potential and the report demonstrates from an economic and planning perspective where these development opportunities are likely to be,” he said, showing the strength that the north is now starting to display.
In terms of household growth in the next few years, Manchester and Leeds, which was recently hailed as the best city in England to live in, were named as the cities with the best potential across the next decade.
The factors that were examined included economic growth, employment growth, stock to sales ratios, affordability and liveability, all of which gave a strong picture of where there will be potential for the best levels of growth in years to come for investors.