Property Investment In The North To Be Boosted By Industrial Strategy
When thinking of Britain in an industrial sense, it’s the northern cities of Manchester, Liverpool, Sheffield and Glasgow that first spring to mind. That’s why when Theresa May recently announced proposals for industrial strategy in technical infrastructure, the northern powerhouse became set to benefit most.
Successful property investors are stimulated when large-scale government spending campaigns are revealed. This is because increased investment will boost the local economy and create jobs, thus leading to increased housing activity and a better quality of tenant.
Combined with low house prices and a thriving rental sector, the Prime Minister has just presented even more reason to invest in the north.
Theresa May’s Industrial Strategy
In a bold act of confidence in the UK’s long-term industrial future, Theresa May’s substantial investment in transport, energy and broadband technology is designed to help businesses of all sizes reach their potential.
In an ever-changing technological world, the digital industry will receive a large chunk of the investment – notably to bring the ultra-fast 5G mobile network to more areas. The £4.7 billion fund will also pay for development into smart energy technologies, artificial intelligence and robotics.
There are also plans to help SMEs by deregulating, allowing smaller companies to grow by cutting bureaucratic red tape. This in itself will be made far easier once Brexit is finalised, with less EU state rules to abide by.
Areas benefiting from the announcement include Manchester and Cheshire, where a £10 million life sciences innovation fund will be set up. The town of Goole in Yorkshire will receive a major cash boost for its intermodal transport terminal, whilst a new conference centre will be established in Blackpool.
During her address at the Sci-Tech innovation park in Warrington, May said:
“The Northern Powerhouse is part of our industrial strategy that we have launched today… It’s about investing in infrastructure which can boost business growth, boost economy and boost investment in the area from the private sector.”
In her aims to build a fairer Britain, the Institutes of Technology will receive a £170 million fund to provide 15 credible alternatives to the academic route. The aim is to help those with low-quality qualifications achieve the same as university graduates, dictated by the needs of industry.
Public spending has a positive impact on a number of sectors – the property market being one of them. Targeted investment increases competition, improves infrastructure and reduces unemployment, helping create long-term, sustainable growth which in itself brings more confidence in real estate.
Various northern hotspots already benefit from a stable property market. Many properties are valued below the national average and produce rental yields of 7-10%. With large student numbers in cities such as Manchester, Liverpool, Edinburgh and Huddersfield, there’s no wonder the north remains a favoured approach for many property investors.
Theresa May’s funding pledge comes on top of a £3 billion growth deal already supporting 11 local enterprise partnerships in the northern region. This renewed vigour to plough money into areas outside of London shows where confidence in the market is heading, something property investors should be looking to take advantage of.
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