Northern Powerhouse delivering best property returns in UK

Leading International Off-Plan Property Consultants LH1 London, specialising in the sales and marketing of prime city centre developments, is reporting record results at multiple developments across Northern Powerhouse cities such as Manchester, Leeds and Bradford.

LH1’s prime Manchester scheme, Spinning Mill, sold out fully off-plan within 16 weeks, whilst their scheme on Leeds’s South Bank has recorded significant value growth since the Development completed in 2020.

Since the announcement of the High-Speed Railway 2 (HS2) key northern cities have undergone extensive city centre regeneration in anticipation of increased job and population growth in response to the much-improved travel connections to London, which has resulted in property values rising considerably.

Rayna Hunter, managing director & head of global sales at LH1 London, commented: “Property investment in the Northern Powerhouse has been the best kept secret for many years, but now investors are starting to realise the incredible returns on offer at high-quality city centre developments in the north.

“There is no shortage of demand, and all the predictions we’re seeing are that this is only going to continue in the years to come.”

Typically, investors from overseas opted for the London market, due to its position as one of the most popular cities in the world, however, there has been a migration to regional cities in recent years, with high London property values negatively impacting potential returns.

In contrast, domestic investors have long seen the potential of regional UK cities, however, recent regeneration of key areas across the north has also drawn-out institutional UK investors from London.

Rayna added: “According to reports, investment into the private rental sector in Manchester, Birmingham and Leeds combined reached £1bn in 2020, which is triple the figure recorded in 2018.”

In terms of property value growth, it’s difficult to find a better location than Manchester. The UK’s new ‘second city’ has dominated growth charts over the last 20 years and has surpassed every other major UK city.

Manchester’s housing market has continued to perform excellently despite recent challenges through COVID-19, however, with overall demand at the end of 2020 33 per cent higher than in the same period in 2019, the Manchester property market is predicted to continue its sharp upward trajectory.