Regional cities in the UK are playing an increasingly vital role in the UK construction boom. The demand for city centre property continues to be strong and the construction industry has been responding in turn. There has been an increase in building activity in many major UK regional cities. In Belfast, Birmingham, Leeds and Manchester there were almost 17,000 homes being constructed.
Residential property demand has been one of the driving forces in this construction boom. There was a 60% year on year increase in residential units in Manchester last year, which is the third year of growth in construction levels. The UK has been experiencing an overwhelming housing crisis, with an ever-increasing need for residential rental property. The UK has been falling behind targets for new home construction and it seems that figures are finally on the rise. Government measures and investment schemes have been attempting to address this by making it easier for buy to let landlords to purchase property. They have also experienced a growing demand for residential property has seen an upswing in construction across the UK.
The UK has experienced a significant shift towards city centre living in the past few decades. Many of these UK regional cities have grown in prominence due to their universities. The increasing number of students, from both home and abroad who are studying and staying in UK regional cities has been transformative. Cardiff is a key example of the effect new students can bring to a city, with its students now making up 20% of the population. Young people are flocking to UK regional cities more than ever before for a world class education, the cost of living in many of these cities is also a key draw, as is the quality of rental accommodation they can afford.
Manchester is one of the best examples of this recent construction boom. Manchester’s skyline has dramatically changed over the past decade. A high demand for city centre rental property has been compelling developers to build up rather than out. The amount of land available for developers is diminishing and increasing in price, so renovations and skyscrapers are becoming ever more common. As of January 2018, there were six towers above 25 storeys currently under construction in Manchester.
Manchester property developers are seeing worldwide demand for their regional city centre apartments. Ensured rental rates of up to 9%, huge tenant demand and affordable investment costs mean that properties like those by RW Invest are flying out. Young professional tenants are looking for increasingly high-end properties with great design and modern amenities. Investment in Manchester has been hitting record highs and now other UK regional cities are following suit.
Property investors are growing in confidence in these northern cities that are on the rise. Levels of investment from both private and public sectors are continuing to restore and regenerate these cities. UK cities are no longer competing with each other as much as they are competing with the world. Manchester was recently found to be the 35th most liveable city in the world, ahead of the capital and other huge cities. For wise property developers, these city centre apartments are becoming an ever more valuable asset. Now is the perfect time to purchase buy to let property in a regional city as an investment, with increasing prices and rental rates looking set to continue across the board.
