The Northern Powerhouse, and especially Manchester, has had one busy 2016: Airport City has seen an £800 million investment, the Sir Henry Royce Institute for Advanced Materials managed to bag another £235 million and The Factory, the city’s new art hotspot adds another £110 million to the list. On top of that, the city’s population is currently at 2.8 million with forecasts estimating it to surpass three million by 2035. Predictions for employment suggest a growth of 3.8% between 2015 and 2020 and 10,300 new homes are required every year until 2035, the Telegraph reported.
The British Government has confirmed a new multi-million pound deal in order to provide more than 2,000 quality new homes across key cities in the UK. The £400 million development is one of the largest investment in the private sector across Britain and will receive a total of £45 million from the Government’s Home Building Fund. The fund makes money available to kick start new development and housing. Overall, 2,062 new homes are being planned. Out of the lot, 995 will be in Manchester, 744 in Leeds and 323 in Birmingham. “Alongside home ownership, we’re determined to create a bigger, better private rental market to offer greater choice for tenants in a country that works for […]
The latest data from Halifax has revealed that the annual rate of house price growth has risen from 5.2% in October to 6.0% in November – the first rise in 8 months. According to the report, house prices in the three months to November were 6.0% higher than in the same three months of 2015. On a quarterly basis, prices in the last three months (September-November) were 0.8% higher than in the preceding quarter.
New rental listings increased by 6.8% in the UK in November, the second month in a row of positive growth, with almost 60% of towns and cities seeing a rise, the latest data shows. Four cities recorded triple digit increases in new rental supply, including Bristol which was up 162.7% compared to October but London recorded a fall of 1.2% in new buy to let properties on the market.
For the first time in eight months, annual growth in UK house prices accelerated, lender Halifax revealed with its latest figures. The report states that property prices have risen by 6% compared to one year ago, meaning the cost of a typical home is now at £218,002. Nationwide, Halifax’s House Price Index rival, only attributed November a growth of 4.4%.
The UK’s build-to-rent sector is probably the country’s property winner for 2016 and the coming year is set to be even better as investors and developers alike are showing confidence in the sector. The Government has already made its support for the sector very clear, and investor are also showing interest despite the Brexit decision and any economic uncertainty that may come with that. JLL recently revealed in a report that investors as well as developers continue to recognise opportunities in the country’s build-to-rent sector. For investors, one of the main turn ons is the security of rental income in London and regional cities the market brings with it.