5 Reasons Why Now is the Time to Invest in Plymouth

Plymouth port will recieve a large portion of the redevelopment funding.

Plymouth is on the up with a spate of multi-million pound regeneration schemes set to be completed through 2017. It shows a high degree of confidence lies in the city, augmenting an already high quality of life in the wider South West region.

For prospective investors from both the UK and abroad, this is a very encouraging sign. Redevelopment projects sustain growth for small businesses, create jobs and provide employment stability, leading to a healthier property market and better quality of tenant.

Despite recent clampdowns on the buy-to-let sector, low interest rates should hold for a while yet. However, according to a chief UK economist Howard Archer, the Bank of England will feel compelled to raise these rates at some point. This means that, if you’re looking to take out a buy-to-let mortgage, the time to act is now.

We’ve put together five further reasons why Plymouth in particular is looking ripe for property investment this year.

 

1. Major Investment

5 Reasons Why Now is the Time to Invest in Plymouth Aspen Woolf

Image credit: Nick Rice via Flickr

Plymouth is to be subject to a vast array of investment projects over the forthcoming months and years. A massive £266 million investment programme is set to transform the city centre, including the £24.6m Northern Corridor transport scheme, £13m Science and Technology hub and highly-anticipated train station revamp. A new tram-style Metro system is also being earmarked to reduce congestion.

 

2. Student Sector

Buy-to-let is always boosted by the presence of local universities and Plymouth has two of them in close proximity, as well as three prominent colleges. Students are always in need of accommodation and post-graduates are also likely to remain in the area to find work. Plymouth University is one of the largest in the country with over 20,000 students in attendance every year.

 

3. Port City

Plymouth is a port city which plays a big part in the city’s tradition, history and culture. Much of the new regeneration fund will be spent on the waterfront, primarily with the regeneration of Millbay docks, increased investment in the Oceansgate marine hub and a new £5 million cruise terminal. In 2020, the launching of the Mayflower will celebrate its 400-year anniversary, which will further boost the tourism sector.

 

4. Property Boom

Various property speculators expect Plymouth property values to rise through 2017. Despite some uncertainty post-Brexit, the market held up well and Plymouth will always attract buyers looking for a high quality of life. Foreign investors from as far away as the U.S and Japan are snapping up homes in Plymouth because they see Devon property as a sound investment. This has been reported by local estate agents Luscombe Maye, who have also reported high levels of viewings and sales early in 2017.

 

5. Favourable Rental Sector

The private rental sector in Plymouth is looking a great bet at the moment. It favours cash investors who will get more value than savers would, especially when taking advantage of Plymouth’s steady stream of post-graduates and young professionals who rely on the rental sector. As an investor, scout around for low-entry properties that guarantee healthy yields of between 7-8%, particularly near the city centre and main university campus.

 

In you’re interested in investing in Plymouth property then Beaumont Square could be ideal for you. Get in touch to find out more.
If you’re still not convinced about why Plymouth is a great place to invest right now, check out our overview of the city.

A New Railway Station at Plymouth Shows the City is On the Up

Plymouth's new train station is only one many regeneration schemes aimed at boosting Plymouth.

Plymouth Railway Station is to be completely transformed after securing multi-million pound Government funding.

The project comes as part of a £43.5 million cash boost for the wider South West region to help improve transport links, support local businesses and encourage growth.

 

Station Revamp

A New Railway Station at Plymouth Shows the City is On the Up Aspen Woolf

Image credit: Steve Jones via Flickr

The joint Great Western Railway and Network Rail proposal will see brand new shops and offices constructed, along with an open public space for improved accessibility to facilities and platforms. The current multi-storey car park is to be demolished with a new one built in a different location.

Not only is the current station in much need of a facelift, but so too is the view greeted by new visitors to the city. This is something Ian Bowyer of Plymouth City Council has noted:

“When people arrive here by rail, their first view is a 1960’s multi-storey car park and a very dated and tired impression of the city.

We want to change this and to overhaul the railway station completely. This project will provide a new gateway and the station will be designed so that the first image of the city will be of the view along Armada Way towards the sea and Smeaton’s Tower.”

 

Plymouth Regeneration

A New Railway Station at Plymouth Shows the City is On the Up Aspen Woolf

Image credit: Chris Sampson via Flickr

The new railway station is only part of a number of regeneration schemes centred on Plymouth and the wider Devon region. This shows that both the government and investors are confident in the area’s potential for growth.

Other local projects include Phase 3 of the Somerset Energy Innovation Centre, numerous youth education schemes and a £9.4 million cash injection in superfast broadband to help rural areas stay connected.

Overall, this brings the Heart of the South West Growth Deal, along with match funding of £115 million from the public and private sector, to a whopping £723 million in total.

 

Investment Opportunities

A New Railway Station at Plymouth Shows the City is On the Up Aspen Woolf

Image credit: Herry Lawford via Flickr

The station revamp is set to act as a catalyst for further regeneration projects in and around Plymouth. The local economy will be massively boosted and SMEs given a better chance to expand. In turn, this creates new employment opportunities, job stability and higher wages.

This is a positive sign for property investors as it helps guarantee enquiries when selling and more reliable tenants if renting. Furthermore, mortgage applications are more likely to be granted in this current economic climate, especially whilst interest rates remain at record lows.

Property specialists Savills forecast that the South West will see house prices grow by nearly 30% by 2018, above the expected national average, and the chief benefactor of this growth will be Plymouth.

For buy-to-let investors, it’s worth looking into fully furnished, managed lets near the city centre for assured yields over a set period. This way, all the hassle of finding tenants and dealing with potential problems is managed on your behalf.

Beaumont Square is one such investment that provides a low-price entry route, with potential to tap into the rewarding private student rental sector. Construction has already begun at this site and is due to complete before 2018.

 

Find out more about investment opportunities in Plymouth here, or by getting in touch for a chat.

If you’d like to know more, you might enjoy our article, Why Invest in Plymouth.

Major Investment in Plymouth’s Economy is a Good Sign for Property Investors

Property experts predict that Plymouth’s house prices will rise throughout 2017.

Generally speaking, when a local economy is performing well, so too will the property market. In the case of Plymouth, economic indicators such as manufacturing activity and employment data are showing encouraging signs as we move into 2017.

In turn, real estate becomes a safer investment, ensuring a high-quality of buyer or tenant is more likely to stay in the area and thus enquire about property.

Investment Schemes

Major Investment in Plymouth's Economy is a Good Sign for Property Investors Aspen Woolf

Image credit: Reading Tom via Flickr

Plymouth Council has recently announced plans to inject a massive £266 million on numerous development projects within the city. This has been aided by a £43.57 million investment as part of the Growth Fund across the South West LEP area.

A new £50 million railway station will be constructed, aided by a £4.3 million government investment, which includes new shops, offices and a modernised multi-storey car park. Likewise, a new cruise terminal is also set to receive the required council funding and could be completed by 2020.

To alleviate the lack of internet signal over the South West’s rural areas in particular, a £9.4 million investment in superfast broadband across Devon and Somerset is expected to provide comprehensive coverage by 2020.

Focusing on education, other multi-million pound projects include the South Devon College Hi Tech Centre and ‘Devon Communities Together’ youth skills scheme. £2 million will also be spent on two of the city’s primary schools to deal with an expanding population.

Post-Brexit

Major Investment in Plymouth's Economy is a Good Sign for Property Investors Aspen Woolf

Image credit: Reading Tom via Flickr

Any fears after the EU Referendum have quickly subsided in the South West as the latest Business Trends Report by business advisers BDO LLP reveals manufacturing optimism has hit a 20-month high.

Likewise, the Confederation of British Industry’s (CBI) last report shows that manufacturers are increasingly optimistic over their exporting prospects and reporting strong growth in domestic orders.

Plymouth voted strongly to leave in the referendum – 59.9% against 40.1% – meaning that any doom and gloom over invoking Article 50 isn’t likely to affect local business decisions either.

Property Forecast

Major Investment in Plymouth's Economy is a Good Sign for Property Investors Aspen Woolf

Image credit: Robert Pittman via Flickr

With stable economic growth and increased investment, the local employment sector is lifted. More people are likely to stay or migrate to the area, and so more people will need somewhere to live. For buy-to-let investors in particular, this is a fantastic confidence boost.

Property experts predict that Plymouth’s house prices will rise modestly throughout 2017, fuelled by these impressive economic forecasts and increased investment. Representatives of the local estate agents’ Julian Marks, Lang Town & Country and Luscombe Maye have all remained optimistic and anticipate a return of buy-to-let investors, many of which have now adapted to the new stamp duty regulations. However, one word of warning is to act quickly whilst interest rates remain at their current low levels.

Whilst house prices in Plymouth are below the national average, there is still great demand in the lettings market as there are a vast number of students in the area. The demand for campus accommodation outstrips supply by 6-1, forcing many students to seek alternative accommodation. Because of this, one such project to consider is the new Beaumont Square apartments offered by Aspen Woolf. They’re located in a prime city centre area, guaranteed to produce NET yields of 8% for three years and construction has already begun, due to complete this year. Because the University of Plymouth and various campus buildings are located close by, you’re also ensured of student enquiries in the build-up to term time.

 

If you’d like to know more about the new Beaumont Square apartments, click here or get in touch today.
Did the mention of student enquiries catch your eye? You might be interested to know that student property investment is still hot in 2017.