During the past 10 years, the city centre in Birmingham has transformed into a successful economic hub, second only to London. For this reason, property investment in Birmingham is booming.
The appeal of city centre life is on the rise not least due to fantastic shopping facilities, excellent international cuisine and a buzzing nightlife.
Areas of affluence are emerging in the Convention and Jewellery Quarters as well as in Digbeth and surrounding areas. There’s no doubt that property prices are increasing rapidly.
£500 million regeneration plan
However, for those interested in property investment in Birmingham it’s still comfortably affordable for investors especially in Digbeth. The £500 million Birmingham Smithfield regeneration project that has recently been announced spans over 34 acres.
Delivering 1,000 residential units, 100,000 m2 of floor space and 3,000 new employment opportunities, the site is expected to benefit the local economy by £470 Gross Value Added (GVA). It will also increase visitors to the area, currently at 40 million per annum, by millions more.
This 10 year Enterprise Zone initiative plan is creative, innovative and exciting. The development of residential zones, vibrant retail markets, cultural and leisure attractions will create an exclusive destination already deemed to be one of the top 10 global locations by Rough Guides.
The development is located next to the most popular shopping area in the city. Attracting 40 million shoppers annually, it accrues £2 billion in revenue for the local economy with over 50 million travellers using New Street Station.
Integration of the Midland Metro Tram, pedestrian walkways and cycling routes will facilitate easy access to the Curzon Terminal for the proposed HS2 (high speed rail). Improvements for public transport are also planned.
Birmingham’s £500m Smithfield city development plans unveiled
Buy-to-let Investment in Birmingham
As city life becomes more popular, with many people wanting to live permanently near to where the action and all facilities are, Birmingham Smithfield at Digbeth is an ideal investment opportunity. Buy to-let investment property has always been in demand but never more so than the interest that has been shown this prime location. Off plan investment for proposed apartments is significantly high.
Huge investment is currently being negotiated with a major Taiwanese conglomerate and with super rich Chinese. To benefit from this project investors need to be decisive.
Building has begun
If you would like more information about property investment in Birmingham city centre and surrounding areas contact us today. Ere Property has offices in the UK and Hong Kong offering property investment services that are trusted by investors across the globe.
Take a look at details of investment property opportunities in Digbeth, Birmingham: https://ereproperty.com/property/enterprize-zone-birmingham/
Leeds’ newest district SOYO, or SOuth of YOrk road, will be the city’s new cultural district. The attention of property investors has been drawn to this area of Leeds city centre, as the area has undergone vast redevelopment with the construction of Leeds’ newest luxury shopping centre Victoria Gate, the home of John Lewis. The district will be built adjacent to West Yorkshire Playhouse, Leeds College of Music, BBC studios, Northern Ballet Head Quarters and is set to become a key development in the regeneration of Leeds City Centre.
Leeds’ New Cultural Quarter
The SOYO proposal includes 106,000sq ft of offices, 35,000sq ft leisure, in excess of 700 residential units, a multi-storey car park, 7,500sq ft retail facilities, a medical centre and a series of vibrant public squares. This type of redevelopment is contributing to long-term economic growth in this area of the city centre and is essential for property investors to be aware of when considering capital growth potential of the property.
West Yorkshire Playhouse
The West Yorkshire Playhouse, which opened in 1990 is set to have a £14 million facelift. Redevelopment will include a brand-new entrance, studio and improvements to the buildings interiors for the thousands of visitors they host every year to enjoy. The Playhouse is a big pull for tourists for the city and was shortlisted for a top tourism award in the Arts & Culture category as part of the prestigious Welcome To Yorkshire White Rose Awards.
The city’s transport system is well positioned for access in and out of the SOYO district. Tenants will have a 6-minute walk to the bus station and 10-minute walk to the train station. Generally, Leeds is one of the most well-connected cities in the UK with exceptional rail, air and road links. London is just two hours away by train and one hour by air. Major roadways including the A1, M1 and M62 are in the vicinity, bringing drivers right into the city centre.
Within the immediate vicinity of the development is the completed Victoria Gate, a new £165 million luxury shopping centre which is also home to the largest John Lewis store outside of London. The true value of Victoria Gate has been revealed as it is expected to attract over £82.5m of inward investment to Yorkshire during its first 10 years. It’s no surprise then that the economy of Leeds ‘grew faster’ than London since Northern Powerhouse was launched back in 2014.
Investment into the Education Sector
A key growth area for development in Leeds is in the education sector. The city is already served by three universities and has the fourth biggest population of students in the UK. The crane survey recorded four new starts in 2017 adding over half a million sq. ft into the development pipeline. This included Leeds City College’s Quarry Hill campus and developments at both the University of Leeds and Leeds College of Building.
From Students to Young Professionals
Rental potential and longer-term capital growth is strong as more graduates are staying in the city to work in its growing financial, technology, professional services sectors. Three major universities support a thriving student population who are encouraged to stay in the region by more affordable house prices than in the South East ensuring high rental demand and healthy yields for landlords. House price growth in Leeds was at the highest in the UK, with average growth of 5.7% in 2017.
Leeds is the second largest financial city after London and has an economy worth £64.6 billion. There are over 30 national and international banks in the city, with First Direct and Yorkshire Bank basing their headquarters there. The city is seeking to establish itself as a strong Northern centre for financial services. A report from law firm Irwin Mitchell said Leeds has expanded its financial sector substantially in recent years, with the city’s total output from finance and insurance increasing by 40 per cent between 2012 and 2015.
The latest buy-to-let changes to affect investors will this time be felt by portfolio landlords who are looking to make another investment.
The Bank of England have placed new, tougher requirements on lenders including the interest rates-dependent ‘stress test’ on new mortgage applications. Any lenders who agree to fund an investor will have to look at the total portfolio of four or more mortgaged properties before making a decision about the type of financing for the single property application. This is because the whole portfolio has to be underwritten when applying for a new mortgage.
For multi-property landlords this may be a challenge as the whole portfolio has to be viable and most lenders have adopted the new rules meaning shopping round to find a lender who won’t apply this new criteria may be difficult. The amount of taxable income that you earn, the number of buy-to-let properties you own and whether you are part of a limited buy-to-let can affect the amount of the loan.
You can still be proactive as a portfolio investor even if you are not ready to invest again immediately. Having complete documentation of your buy-to-let properties and mortgages is an important first step and up-to-date proof of tax paid on your buy-to-let properties would be useful.