In recent years, we’ve seen the start of the rising regional cities, those outside of London, with many investors looking towards the likes of Leeds, Liverpool, Manchester, Birmingham and Bristol thanks to the cheaper entry prices, higher returns and growing demand as businesses start to move away from the capital.
And according to new reports, this trend for regional growth in investment and rental demand could continue for some time to come, with the latest survey showing that more and more people are choosing to move away from London all the time, with many citing the unaffordable price of homes in the capital as their main reason for doing so.
Data published by multi-disciplinary property company Humberts, claims that 2015 saw as many as 280,000 people moving out of London to live elsewhere. This marked a three per cent rise on 2014 as a whole, with many people saying their main reason for doing so was the price of buying or renting in London.
Best commuter belt locations for Londoners
The Evening Standard recently published an article about the five best places to live within 60 minutes from the London.
Chelmsford in Essex, Windsor and Eton in Berkshire and Luton in Bedfordshire were all named in its top 5 choices.
As more people looks for regional properties as it becomes less and less affordable to live in London, commuter belt towns and cities will no doubt reap the rewards.
Spotlight on the Northern Powerhouse
The report also shows that young people are the main driver of moves away from London, which could also tie into the belief that a growing number of young professionals are happy to follow their companies to northern cities when they move in order to enjoy a cheaper way of life.
Humberts said that in 2015, 26 per cent of those who were leaving London were aged between 20 and 29 years old, while another 23 per cent were aged between 30 and 39, showing that younger people are indeed less inclined to live and rent in London than ever before, which could be very good news for regional property investors.
Cities such as Liverpool, Birmingham and Manchester are popular with both buyers and tenants at the moment, because not only are they providing more high quality jobs for young professionals, but the cities are also home to good transport networks, good broadband connections and housing costs that are half the price of those in London in some places.
Jeremy Campbell-Harris from Humberts’ London Country House Department, said: “The price of housing in London and the South East has risen so significantly over the years that Londoners are looking for new areas where their money can go further.”