In recent years, the North of England has emerged as an increasingly attractive destination for property investors seeking new opportunities and higher returns. One of the driving forces behind this interest is the Northern Powerhouse initiative.
The North of England is made up of the North East, North West, Yorkshire and the Humber, and is home to almost 15 million people, where almost two-thirds of this population are of working age. But, northern property has long been neglected and so have its regions.
The Northern Powerhouse Initiative was conceived to boost the North of England as a literal powerhouse within the UK. Utilising its impressive work force, and improving infrastructure innovation and further job creation. But what does the Northern Powerhouse mean for property investors?
In this article, we delve into the details of the Northern Powerhouse Initiative, Build Back Better and Levelling Up Agendas, and what that means for property investors in the UK.
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- Why is the North of England attractive for property investors?
- What is the Build Back Better Initiative?
- What is the Levelling Up Agenda?
- What is the Northern Powerhouse Initiative?
- Why is the Northern Powerhouse Initiative a good thing for investors?
- Why it’s the best time to be a property investor in the North
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Why is the North of England attractive for property investors?
The North of England has become increasingly attractive for property investors due to favourable investment opportunities and potential returns. Property prices in the North are more affordable compared to the South of England.
The North England property investments are currently surpassing the South of England in terms of both capital appreciation and capital yields. In the North, there has been an increase in the average house price, rising from £205,875 in May 2022 to £211,392 by May 2023, representing a robust annual growth rate of 2.7%.
Meanwhile, in the South, the average price has seen a more modest increase, climbing from £385,719 to £388,917, indicating an annual change of just 0.8%.
Several Northern cities are experiencing significant economic growth driven by sectors like technology, finance and creative industries. With the Northern regions being the beneficiaries of substantial infrastructure developments, from various government backed initiatives.
What Initiatives have been introduced in the North of England?
The Build Back Better initiative, Levelling Up agenda, and the Northern Powerhouse initiative are interconnected strategies that the UK government has put forward to address various economic, social and regional challenges.
While they have different objectives, they also complement each other in several ways, contributing to a thorough approach for the betterment of the UK as a whole, particularly its less economically developed regions in the North.
Shared regional focus
The Levelling Up agenda primarily aims to reduce regional disparities in economic opportunity and prosperity. It focuses on directing investments and resources to less prosperous areas of the UK, particularly in the North and Midlands, to promote economic growth and improve living standards.
Whereas the Northern Powerhouse initiative specifically concentrates on enhancing economic prospects in the Northern regions of England. It seeks to make the North a hub for innovation, infrastructure development, and job creation, thereby contributing to the broader goal of levelling up the United Kingdom.
The Build Back Better bill places a strong emphasis on infrastructure development, including green and sustainable projects. It seeks to improve transportation networks, digital connectivity, and overall infrastructure across the UK.
Infrastructure development is a key component of the Northern powerhouse initiative as well. Both initiatives align in their focus on infrastructure improvements, ensuring that the North benefits from national infrastructure investments, which is essential for levelling up.
Economic growth and innovation
The Northern Powerhouse initiative prioritises economic growth and innovating in the North, fostering an environment conducive to businesses and technology sectors. The Build Back Better initiative also promotes innovation, particularly in digital technology and sustainability, with the goal of making the UK a global leader in these areas.
The levelling up agenda’s core principle is to promote inclusive growth by addressing social and economic inequalities, particularly in disadvantaged communities. The Build Back Better initiative complements this by investing in skills development, vocational training and education, ensuring that individuals in less prosperous regions have the skills and opportunities to participate in the evolving economy.
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What is the Build Back Better initiative UK?
The Build Back Better initiative, introduced by the Conservatives at the height of the pandemic, was a strategic plan aimed at fortifying the nation’s recovery and fostering resilience. This initiative revolves around three key pillars: infrastructure, skills and innovation.
Build Back Better Initiative – Infrastructure
The government pledged a commitment to investments in green and sustainable infrastructure, with a particular focus on steering the economy towards a low-carbon future. This encompassed funding for renewable energy efficiency.
The infrastructure pillar for the Build Back Better initiative took a two pronged approach, with physical infrastructure improvements like well-developed transport networks, and then digital connectivity through public services.
The underlying objective of this initiative was to boost the UK economy through the investment of digital technology and buildings. In the year before the government announced the Build Back Better initiative, they introduced the National Infrastructure Strategy (NIS) which looked to build the UK back fairer, faster and greener following the pandemic.
The National Infrastructure Strategy were committed to boost growth and productivity across the entirety of the UK by:
- Levelling up agenda: Levelling up and strengthening the bond through investment in rural areas, towns and cities.
- Net-Zero: Put the UK on a path to meet the zero emissions target by 2050, by decarbonising the UK’s power supply, heat and transport networks.
- Investor confidence: Support private investment by providing investors with clarity over the UK’s plans to bolster investor confidence.
- Project Speed: Accelerate and improve government reforms including streamlining the planning system and greater use of cutting edge construction technology.
How did the NIS plan to build the UK back better?
The National Infrastructure Strategy set out to rejuvenate the UK’s infrastructure and stimulate private investment, they did this by setting out plans for:
- £22 billion being spent on the original HS2 plan, connecting the North and South.
- £1.3 billion to accelerate the rollout of electric vehicle charging infrastructure.
- £5 billion for buses and cycling as part of the National Bus Strategy.
- £1 billion for UK-wide funding to support the establishment of carbon capture and storage in four industrial clusters.
- £4.2 billion for Intra-city transport settlements to support largest city centres.
- £5 billion to accelerate UK-wide gigabit broadband roll-out and the Shared Rural Network which would extend 4G mobile coverage to 95% of the UK.
- £4.8 billion for the Levelling Up Fund.
- £150 million for the Community Ownership Fund.
- £5.2 billion by 2027 to better protect communities from flooding and coastal erosion.
What did the Build Back Better Initiative look like for each region?
The UK government has made significant commitments to fostering regional economic growth across the nation. These initiatives encompass City and Growth Deals, intra-city transport settlements, the Oxford-Cambridge Arc, the Integrated Rail Plan for the Midlands and the North, and the establishment of Freeports.
City and Growth Deals: Investing in Scotland, Wales and Northern Ireland
Scotland City and Growth Deals
To accelerate local economic priorities, the government will bring forward £25.8 million over the next five years for three City and Growth Deals in Scotland, namely Ayrshire, Argyll & Bute, and Falkirk.
Wales City and Growth Deals
Similarly; £58.7 million will be brought forward over the next five years for three City and Growth Deals in Wales, focusing on Swansea, North Wales and Mid-Wales.
Northern Ireland Investment
The UK Government is investing £617 million in four City and Growth Deals in Northern Ireland, bolstering economic development in the region.
Intra-city transport settlements
Budget 2020 commitment
Budget 2020 pledged £4.2 billion in funding for intra-city transport settlements, effective from 2022-23. This commitment spans 5-year consolidated funding settlements for eight city regions, including Greater Manchester, Liverpool City Region, West Midlands, West Yorkshire, Sheffield City Region, West of England and Tees Valley.
Progress in 2021-22
The 2021-22 budget signified the initial steps in delivering the government’s commitment. It confirms capacity funding for 2021-22 to support city regions with established governance structures. These funds enable the development of integrated, investment-ready transport plans aimed at addressing Northern local challenges such as congestion and boosting productivity.
Oxford-Cambridge Arc: Fostering innovation and sustainability
The Oxford-Cambridge Arc is positioned to become a global innovation powerhouse. A Spatial Framework, developed with robust community engagement, will guide long-term infrastructure investment.
This strategy aims to create jobs, promote clean growth, achieve net-zero emissions, and ensure environmental sustainability. Additionally funding has been confirmed for an extension of East West Rail, with plans to establish up to four development corporations along its route to enhance the living and working environments.
Integrated Rail Plan for the Midlands and the North
The integrated Rail Plan for the Midlands and the North focuses on the coordinated delivery of Phase 2b of HS2, Northern Powerhouse Rail, and other planned rail investments. This approach ensures that transformational rail improvements are expedited and extended to more areas.
Freeports: Boosting economic prosperity
Eight locations in England have secured success in the Freeports bidding process, with plans to commence operations later in 2021, pending successful business case assessments.
Freeports are expected to benefit the entire UK, and the government is actively collaborating with the devolved administrations in Scotland, Wales and Northern Ireland to establish at least one freeport in each nation promptly.
Build Back Better Initiative Skills
Under the Build Back Better initiative, the government has undertaken an in depth approach to enhance the education and employment sectors. This initiative focuses on expanding opportunities, promoting quality and aligning education with employer needs.
Traineeships and apprenticeships
- Expanding and improving traineeships: The government’s vision included the expansion of traineeships while enhancing their quality and creating pathways to apprenticeships.
- Incentivising apprenticeship hires: To foster apprenticeship opportunities, sector based work academies were expanded, encouraging the recruitment of new apprenticeships.
- National career service enhancement: The capacity of the National Careers Service is being boosted to provide comprehensive guidance and support for individuals seeking education and employment opportunities.
Investment in further education and technical education
- Additional resource and capital funding: Further education in England is receiving additional resource and capital funding to enhance its capacity and effectiveness.
- Reforming technical education: The government is actively reforming technical education, aligning the post-16 system more closely with the demands of employers.
Quality enhancement in apprenticeships
- Ongoing focus on quality: A core component of the initiative is the continuous improvement of apprenticeships, ensuring high standards and effectiveness for employers.
- Access to education for adults: Funding is being made available for adults lacking a Level 3 qualification (A levels or equivalent) to pursue courses that enhance their employability.
Upskilling and reskilling for adults
- Employer-led skills boot camps: Adults across England will have access to flexible, bite-sized skills boot camps, allowing them to upskill and re-skill as per their needs.
- Lifelong Learning Entitlement: Starting in 2025, the government is introducing the Lifelong Learning Entitlement, enabling both adults and young people to pursue education flexibly throughout their lifetime.
Promoting higher technical education and modular learning
- Consultation and action: While the Lifelong Learning Entitlement is being developed, consultations are ongoing to determine its scope and details. The government is actively stimulating higher education and encouraging more frequent credit transfers.
- Skills and employment funding: The new UKPSF (United Kingdom Productivity and Skills Fund) program is instrumental in supporting and funding various aspects of skills and employment development.
Build Back Better Bill Innovation
The United Kingdom boasts a distinguished reputation in life sciences, with decades of investments in cutting-edge research facilities and world-renowned universities such as Oxford, Cambridge, Edinburgh, Glasgow, Cardiff, and Belfast.
Complementing this academic excellence is the globally acclaimed clinical research infrastructure and the unparalleled National Health Service (NHS), offering comprehensive healthcare from birth to end of life.
However, the rapid pace of technological evolution and intense global competition necessitates a proactive government approach to nurture sectors and technologies that will shape the nation’s future.
Advancing genomic healthcare in life sciences
Building on its existing performance and leadership, the government envisions establishing the most advanced genomic healthcare system worldwide within the life sciences sector.
The government invested £14.6 billion into Research and Development (R&D) in 2021-22, boosting the emerging R&D strengths in the UK. There was also a further £800 million funding for the Advanced Research & Invention Agency (ARIA).
Fostering digital and creative industries
The UK’s digital and creative industries serve as a resounding success story, driving innovation and economic growth. The government is committed to supporting these sectors by cultivating a secure, equitable and open digital economy.
This strategy aims to nurture creative businesses across the country, capitalising on foundational technologies such as AI, quantum computing, and digital infrastructure, as outlined in the National Data Strategy and Digital Strategy.
In a significant move, the government has introduced an innovative Small and Medium-sized Enterprise (SME) management training program that taps into the expertise of both industry leaders and international peers.
Moreover, the government is rolling out an expansive scheme designed to assist 100,000 SMEs in streamlining their operations, saving valuable time and resources. This initiative centres on the adoption of productivity-enhancing software which promises to revolutionise their business practices, ushering in a new era of efficiency and growth.
Green industrial revolution in clean energy
In clean energy, the government is committed to catalysing a green industrial revolution. Targeted investments in technologies like Carbon Capture, utilisation and Storage (CCUS), hydrogen and offshore wind underscore the UK’s dedication to achieving a sustainable and eco-friendly energy landscape.
Empowering Fintech innovation
The fintech sector, a key economic contributor, contributes nearly £11 billion to the UK economy and employs nearly 76,500 individuals. The government recognises the importance of this sector and supports its continued growth.
The Ministry of Defence (MOD) annually invests over £20 billion in the UK industry, sustaining more than 200,000 jobs across the nation and standing as a major provider of apprenticeships. Moreover, the MOD’s Defence and Security Accelerator actively promotes innovation by identifying and funding over 750 groundbreaking ideas.
How would the Build Back Better Initiative meet their pillars?
The Build Back Better Initiative was conceived with a clear mission: to address the three crucial pillars of infrastructure, skills and innovation. It sought to achieve a net-zero emissions goal for the UK by 2050, establish the UK as a world leader in technology and harness the Levelling Up agenda to enhance infrastructure across the entire nation.
The initiative looks to pave a way for a stronger, more sustainable and innovative United Kingdom.
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What is the Levelling Up agenda?
The concept of the Levelling Up Agenda gained prominence as a key political and policy objective, notably following the 2019 general election, where it stood as the central theme of the Conservative party’s campaign.
The levelling up agenda is a vision aimed at enhancing various aspects of the UK’s societal fabric. It aspires to elevate job opportunities, raise income levels and enhance overall living standards.
This agenda seeks to create safer streets, safeguard the health and wellbeing of citizens and revitalise town centres. Additionally, it endeavours to bolster local transportation infrastructure across the United Kingdom.
Central to the implementation of this transformative vision is a substantial infection of £11 billion into local councils, schools and essential services. This investment is geared towards bridging regional disparities, fostering inclusive growth and ensuring that prospect is shared across the nation.
What is the Levelling up mission?
Drawing knowledge from past experiences, it’s evident that reversing deeply entrenched historical trends demands the establishment of a new policy framework.
The system change means putting power in local authorities and arming them with the correct information. The Levelling Up agenda encompasses five key pillars aimed at driving progress and prosperity across the nation.
1. Clear and ambitious medium term missions
The UK Government is establishing clear and ambition medium-term missions to provide consistency and clarity in levelling up policy objectives. These missions not only serve as guiding principles across government but also inspire innovation and action in both the private and civil society sectors.
These missions encompass diverse ambitions for the entire UK, and delivering on them, while respecting devolution settlements, necessitates close and collaborative collaboration with devolved administrations. These decade-long missions will undergo periodic review by the UK Government.
2. Boosting productivity, pay jobs and living standards
By 2030, the Levelling Up Agenda aims to elevate pay, employment opportunities and productivity in every area of the UK, with each region boasting a globally competitive city. The goal is to bridge the gap between top-performing regions and lesser performing regions.
3. Investing in Research and Development (R&D)
By 2030, domestic public investment in R&D outside the Greater South East will increase by at least 40%, with a one-third increase over the Spending Review period. This investment is expected to leverage double the amount of private sector investment to foster innovation and drive productivity.
4. Enhancing transport infrastructure and digital connectivity
By 2030, the Levelling Up Agenda envisions local public transport connectivity approaching London’s standards. This includes improved services, simpler fares, and integrated ticketing. Additionally, the UK is targeting nationwide gigabit-capable broadband, 4G coverage for all and 5G coverage for the majority of the population.
5. Strengthening education, skills, health, well-being and community pride
By 2030, the agenda seeks improvements across various fonts, including education, skills training, health, well-being and community pride. The goal is to narrow gaps and enhance overall quality of life in all regions.
The UK government is committed to providing leaders and businesses in local areas with the necessary tools to drive change. This includes simplifying and expanding local devolution, supporting private sector clusters, and improving data transparency and evaluation to enhance decision making.
A new regime will be established to oversee the Levelling Up missions, with a statutory duty to publish an annual report on progress. Additionally, a Levelling Up Advisory council will offer advice on policy design, delivery and impact, ensuring rigorous external scrutiny.
What are the Levelling Up policies?
In the Levelling Up Agenda, the government set out to meet their medium term goals by fostering both public and private investment, nurturing a business-friendly environment, encouraging inbound investments and encouraging a highly, skilled, well-compensated work force.
The Levelling Up missions are set for 2030, but the government acknowledges the immediate needs of certain communities, and thus, the policies presented are designed to yield visible results within the next few years.
Boosting productivity and prosperity through private sector growth
A thriving, productive economy in every corner of the UK is essential for levelling up. By 2030, the government’s aim is to witness improved pay, employment and productivity in every part of the nation, with the chasm between top-performing areas and others narrowing (Mission One).
At the heart of this mission is to bolster the private sector, the engine of wealth creation. The government is dedicated to fostering a more flexible and robust regulatory framework for post-European Union business while overhauling outdated EU regulations inhibiting investment from pension funds and others.
The government is also placing technology, science and innovation at the heart of its new economic model, with substantial R&D investments aimed at strengthening their scientific base across the UK. Public R&D investment is expected to reach £20 billion by 2024-25, with the goal of raising total UK R&D investment to 2.4% of GDP by 2027.
Driving innovation and investment
The government’s second mission set for 2030, focuses on amplifying domestic public investment in R&D outside the Greater South East by at least one third over the Spending Review period and 40% by 2030.
This extra government funding aims to leverage twice as much private sector investment in the long term, stimulating innovation and productivity growth (mission two).
Additionally, the government is targeting £100 million of investment in innovation accelerators situated in Greater Manchester, the West Midlands, and Glasgow city region, to harness the potential of scientific research and fuel economic progress in these areas.
Mobilising capital and investment
To extend economic opportunities to underserved regions and projects, the government is directing resources where they’re needed most. Through the UK Shared Prosperity Fund, £3 billion is allocated to bolster access to finance for SMEs and stimulate global investment across the UK.
The government is also employing tax incentives to encourage private sector investment, including initiatives like Freeports, Enterprise Zones and the Super-deduction. To further empower local areas, the government is collaborating with Local Government Pension Funds to foster local investment, aspiring for up to 5% of assets to be dedicated to projects supporting local areas.
Robust transportation and digital networks are vital for community vitality. The government’s £96 billion Integrated Rail Plan aims to elevate rail connectivity in the North of Midlands, while £24 billion will be invested in major roads and motorways, £5.7 billion in City Region Sustainable Transport Settlements, and £5 billion in buses, cycling and walking networks (mission three).
Moreover, Project Gigabit and the Shared Rural Network endeavour to provide nationwide gigabit capable broadband and 4G coverage, with 5G access for most of the population by 2030 (mission four).
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What is the Northern Powerhouse Initiative?
Part of the government’s commitment to boost the northern local economy and address regional disparities in the UK’s economic landscape is recognized through the Northern Powerhouse initiative.
This strategic plan, introduced in the House of Commons on 23 June 2014, aims to invigorate the northern regions, including the Northern Powerhouse region itself, which encompasses great cities such as Manchester and Leeds.
Spearheaded by then-Prime Minister Theresa May, the initiative called for increased investment in transport, including the ambitious HS2 high-speed rail line between Manchester and Leeds. It also emphasised the importance of directly elected mayors and devolving powers to be closer to the people.
One of the key figures in championing the Northern Powerhouse was the Northern Powerhouse Minister, Jake Berry. This ministerial role, established to oversee the implementation of the initiative, played a crucial role in increasing connections and trade and investment opportunities across the region.
The Northern Powerhouse was further supported by local entities such as the Northern Local Enterprise Partnerships, a group of northern towns, and organisations like the Institute for Public Policy Research.
The Northern Powerhouse also aligned with the government’s broader industrial strategy and efforts to strengthen the economy of the North. A significant milestone was reached on 23 September 2016 when the Secretary of State for Transport announced the Northern Transport Strategy, emphasising improving transport and culture across the North.
Additionally, the Great Exhibition of the North in 2018 showcased the region’s innovation and creativity, drawing attention to its potential for growth.
Despite challenges and political changes, including resignations from the government, the Northern Powerhouse remained a focal point in the government’s agenda, underlining the belief that it was indeed time to invest in the North to create great cities and increase connections within this dynamic and economically promising part of the country.
The Northern Powerhouse (NPH) Initiative represents a bold vision set forth by the Conservative government, specifically aimed at bolstering economic growth in the North of England, with a strong focus on key urban centres like Hull, Manchester, Liverpool, Leeds, Sheffield, and Newcastle.
This initiative was initially unveiled by George Osborne in 2014, then as part of the Build Back Better agenda and has since been reiterated within the broader Levelling Up strategy.
The Northern Powerhouse strategy encompasses six core pillars, each contributing to the comprehensive upliftment of the region: Ideas, Infrastructure, Business Environment, People, Places, and Partnerships.
Northern Powerhouse Initiative ideas
The North of England is already a hub of intellectual prowess and scientific excellence, playing a pivotal role in shaping innovations that will drive productivity and foster the region’s future economic prosperity.
Northern Powerhouse Initiative transport infrastructure
Transport for the North (TfN) takes centre stage as the United Kingdom’s inaugural sub-regional transport authority, working in close collaboration with the central government and national transport bodies.
TfN is dedicated to conceptualising and implementing strategic transport infrastructure improvements across the North of England. These improvements encompass transformative projects like Northern Powerhouse Rail (High Speed 3) and the ongoing Northern Hub initiative, which aims to eliminate railway bottlenecks around Manchester, thus facilitating swifter connectivity across the region.
What is High Speed 3 (HS3)?
Initially envisioned as High Speed 3 (HS3), the Northern Powerhouse Rail (NPR) has evolved into the Integrated Rail Plan for the North and Midlands (IRP). This comprehensive rail program aims to upgrade existing lines, enhancing connectivity from Liverpool to Manchester and then on to Leeds and Bradford.
Notably, the plan includes the development of a high-speed rail link from Manchester to Marsden, West Yorkshire, followed by further enhancements to the line to Leeds via Huddersfield.
Northern Powerhouse Initiative business environment
The Northern Powerhouse is globally renowned as a treasure trove of opportunities, attracting substantial investments from international stakeholders. The North of England presents a diverse array of opportunities across various sectors, encompassing energy, automotive, aerospace, technology, advanced manufacturing, life sciences, finance, business, professional services, and the digital realm.
Northern Powerhouse Initiative people
At its core, the Northern Powerhouse Initiative aspires to provide world-class education, training, and care to all, regardless of their background. It seeks to ensure that everyone has equal opportunities to reach their full potential and lead more fulfilling lives.
This vision is underpinned by various regional initiatives, such as the National College for Nuclear (Cumbria) and the National College for High-Speed Rail (Doncaster). Additionally, the “N8” research-intensive universities—Durham, Lancaster, Leeds, Liverpool, Manchester, Newcastle, Sheffield, and York—have delivered impressive outcomes, generating 119,999 jobs, injecting £12 billion into the regional economy, and aiding over 31,000 businesses, resulting in more than £6.6 billion in gross added value to the region.
Northern Powerhouse Initiative places
The North of England and Wales offer an exceptional quality of life that draws tourists, businesses, and investors from around the world. Consequently, substantial investments are being made to bring people closer together through initiatives such as superfast broadband and the creation of world-class cultural venues.
Success in the Northern Powerhouse endeavour is fundamentally determined by those who recognize its potential, and therefore, efforts are being made to enhance connectivity to attract and retain top talent, ensuring sustainable growth for future generations.
Northern Powerhouse partnership
The Northern Powerhouse has garnered international recognition as a prime investment destination. Foreign investors acknowledge the presence of some of the world’s most talented entrepreneurs and businesses in the North.
To showcase the North’s immense potential as a business-friendly location, the Northern Powerhouse partner programme allows the collaboration of a vast network of over 300 partners, collectively highlighting the myriad advantages of conducting business in the region.
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Why is the Northern Powerhouse initiative a good thing for investors?
The Northern Powerhouse Initiative stands as a highly attractive prospect for both domestic and international investors, serving as a government-backed initiative aimed at addressing the economic disparities between the North and South of England.
This initiative opens up investment opportunities in Northern regions, characterised by lower initial costs and the potential for substantial capital appreciation as the North undergoes development and growth.
This ambitious project presents a synergistic amalgamation of the Powerhouse Investment Fund, the Northern Powerhouse Partnership, the European Regional Development Fund and Local Enterprise Partnerships (LEPs).
Northern Powerhouse & it’s core cities
At its heart, the Northern Powerhouse comprises six core cities: Manchester, Liverpool, Leeds, Newcastle, Hull and Sheffield.
Notably, Liverpool, Leeds and Sheffield have all secured positions within the top 25 postcodes for buy-to-let rental yields spanning from 2020 to 2023. On average, rental yields in the North surpass those in the South, making the Northern Powerhouse an attractive choice for investors hailing from Southern regions.
These cities are experiencing a steady increase in their student populations, paralleled by a corresponding rise in permanent residents. For instance, Manchester, known for being one of the youngest cities and towns to live in England, boasts a population where nearly a quarter falls within the 20 to 29 age bracket.
The younger generation, often hindered from entering the property market, tends to favour renting, presenting a favourable scenario for investors and landlords with buy-to-let properties in the North.
Liverpool, Manchester and other Northern Powerhouse cities and towns offer investors the benefit of affordable property prices, setting them apart from the Southern counterparts like London.
This translates into generous returns on investment, making the North an attractive proposition for those traditionally focused on the more southern cities.
Which Northern Powerhouse city offers the best return on investment?
According to Zoopla, the North East of England, particularly Hartlepool (in close proximity to Newcastle), stands out as the region offering the highest rental yields in the North.
Hartlepool boasts an impressive 7.64% rental yield, closely followed by Middlesbrough and Sunderland, both of which offer 7.61% yield. These figures underscore the immense potential that awaits investors seeking opportunities within the Northern Powerhouse initiative.
Why it’s the best time to be a property investor in the North of England
In recent years, property investors have increasingly turned their attention to the North England property investments, and today, it’s widely recognised as the best time to be a property investor in the North. Several factors coalesce to create a compelling investment landscape, underpinned by government initiatives, attractive rental yields and flourishing rental market.
One pivotal catalyst for this North England property investment boom is the Northern Powerhouse initiative, which is dedicated to addressing the economic disparities between Northern and Southern England. This initiative offers investors a unique opportunity to tap into Northern properties at lower costs, with the promise of substantial capital appreciation as the North undergoes a transformation in terms of infrastructure and economic growth.
The implementation of the Northern Powerhouse initiative by the UK government has injected significant investments into the Northern regions. This initiative aims to rebalance the country’s economy by fostering economic growth and innovation in historically disadvantaged areas.
With a strong focus on infrastructure development, skills enhancement, and innovation, property investors in the North can benefit from rising property values and increased demand due to improved living conditions and job opportunities.
The government’s commitment to green and sustainable infrastructure, such as electric vehicle infrastructure, not only contributes to a more eco-friendly environment but also enhances the overall appeal of Northern cities and towns.
Improved transportation networks including projects like the HS2 and HS3, increase accessibility and connectivity, attracting both residents and businesses to the region.
The six core cities at the heart of the Northern Powerhouse – Liverpool, Newcastle, Hull, Sheffield, Manchester and Leeds — emerge as prime investment destinations.
These cities have garnered attention for their top-tier postcodes delivering attractive buy-to-let rental yields. Rental yields in North England property investments consistently outperform those in the South, making it an enticing choice for investors, both domestic and international.