Friday 19 March 2021
Last week Savills amended its capital growth forecast and it’s certainly looking good! We’ve broken down the top 5 regions in England forecasted for the highest growth. All regions are predicting growth, even London (although this is the lowest growth predicted of 12.6%). The average UK growth is at 21.1%, with 4 out of the top 5 exceeding this average.
The North West is coming out on top with a 28.8% predicted growth in property prices over 5 years. This is 7.7% above the UK average.
Three of the key locations in the North West ERE are watching are Preston, Manchester and Liverpool.
Preston has recently been awarded £20.9m from the Towns Fund for a series of ambitious regeneration projects within the city’s emerging Harris Quarter. Average prices for apartments in Preston are £144,844. This would suggest an increase of £41,715 in 5 years based on Savills predictions.
Manchester city centre has changed dramatically over the past 15 years and is now one of the most dynamic centres in Europe. Significant private and public sector investment has led to a more vibrant and diverse cityscape, with MediaCity one of the biggest hubs for well-established employers, creating thousands of local jobs. Average prices for apartments in Manchester are £225,661. This would suggest an increase of £64,990 in 5 years based on Savills predictions.
Liverpool has a GVA of £30bn PA and is undergoing a £14bn regeneration-led renaissance. In the next five years Liverpool will deliver Everton FC’s new stadium, a new cruise terminal, a new TV and Film hub, £250m of road infrastructure and 2 million sq ft of commercial office space. Average prices for apartments in Liverpool are £126,577. This would suggest an increase of £36,454 in 5 years based on Savills predictions.
A close contender with second place is Yorkshire and The Humber with 28.2% growth forecasted. This is 7.1% above the UK average
Three of the key locations in Yorkshire and The Humber ERE are watching are Leeds, Hull and Sheffield.
Leeds was ranked as the best place to live and work in the North according to the latest Demos-PWC Good Growth for Cities Index. It is a city that has been in the news a lot recently with news announced March 2021 that 100s of jobs will be moved out of London to Leeds as well of the now completed Channel 4’s head office. Average prices for apartments in Leeds are £243,084. This would suggest an increase of £68,550 in 5 years based on Savills predictions.
Hull has been ranked as the best city for rental yield by This Is Money. The city has also recently secured £640,000 from the National Leisure Recovery Fund, £75m of support to the Able Marine Energy Park creating 3,000 additional jobs and also Siemens planning to double their wind turbine factory. Average prices for apartments in Hull are £100,124. This would suggest an increase of £28,235 in 5 years based on Savills predictions.
Joint 3rd is the East Midlands & West Midlands at a 24% increase in property prices expected over 5 years. This is 2.9% over the UK average.
Two of the key locations in Yorkshire and The Humber ERE are watching are Nottingham and Derby.
Derby is one of the most central cities in the UK with several major cities just a short train journey away. It has the 2nd highest average income per household outside of London. As Boris Johnson said on his recent visit “You look at the things that go on in just 15 minutes from here, you’ve got Bombardier, you’ve got Rolls-Royce, all sorts of things happening in Derby.” Average prices for apartments in Derby are £113,715. This would suggest an increase of £27,291 in 5 years based on Savills predictions.
Nottingham in 2030 will be a very different place from the city today, with a transformed economy, and a healthier, more prosperous population. There are multiple regeneration projects – a £2 billion redevelopment of the city centre’s Southside, £1 billion has already been invested in the city’s infrastructure and a £60 million new-build regional centre that will employ around 4,000 HMRC staff, to name just a few. Average prices for apartments in Nottingham are £136,003. This would suggest an increase of £32,640 in 5 years based on Savills predictions.
Three of the key locations in the West Midlands ERE is watching are Birmingham, West Bromwich and Coventry.
Birmingham has witnessed a surge in development and investment, providing jobs, homes, improved public transport and public spaces that we need as a growing city. The arrival of HS2 is going to transform the city. Average prices for apartments in Birmingham are £172,535. This would suggest an increase of £41,408 in 5 years based on Savills predictions.
West Bromwich is a key commuter town to Birmingham being only 14 minutes away from the city. The town has already seen the opening of a new Central College Campus, the completion of the first office building at the new Providence Place development, a revamped High Street and metro station, the New Square retail and leisure complex, a revitalised Dartmouth Park, and a new leisure pool and fitness centre. Average prices for apartments in West Bromwich are £92,827. This would suggest an increase of £22,278 in 5 years based on Savills predictions.
Coventry has a major scheme being backed with nearly £100m of West Midlands Combined Authority (WMCA) funding. The plans are for the City Centre South project, which includes new homes, shops, restaurants and a cinema. Average prices for apartments in Coventry are £126,437. This would suggest an increase of £30,345 in 5 years based on Savills predictions.
The North East is the 4th highest growth predicted over 5 years with a 20.5% increase in property prices forecasted.
The key location in the North East ERE is watching is Newcastle.
Newcastle has so much going on in the city with multiple major regeneration projects planned and underway. Pilgrim Street will see £300 million regeneration of new offices, restaurants, and bars. Helix is a multi-phase regeneration scheme aiming to create a local innovation cluster that will generate thousands of new high-tech jobs. Average prices for apartments in Newcastle are £173,671. This would suggest an increase of £35,603 in 5 years based on Savills predictions.