The old adage ‘location, location, location’ is long standing as one of the key considerations when researching for your next property investment. For the investor looking to buy at a reasonable price and reap the benefits of high yields and capital growth in the future, areas undergoing significant regeneration projects are a good place to start.
If that sounds like you, leading UK property developer SevenCapital has listed its top five regeneration hotspots in the UK for investors looking for that up and coming hotspot that’s tipped to pay dividends well into the future.
- Sheffield
- Birmingham
- Leeds
- Manchester
- Slough
Sheffield
Having already completed The Heart of the City masterplan, which saw the regeneration of the Peace Gardens, the Winter Garden and St Paul’s Tower and the introduction of new restaurants and grade A office space, this Northern city is now onto a £470 million Heart of the City II masterplan.
With planning proposals for 1.5 million sq ft of redevelopment including leisure facilities, quality urban living, public spaces and premium retail units, it’s expected this scheme will deliver between 5,000-7,000 new local jobs – a bona fide tick in the box of any private landlord looking for an area with increasing tenant demand.
Birmingham
The UK’s second city has undergone a massive transformation over the past 20 years, with a raft of major regeneration projects already under its belt or well underway including the Bullring, New Street Station and Grand Central, the £700 million Paradise redevelopment and Arena Central. All having contributed to Birmingham’s ever-increasing population and as such increasing demand for homes.
The Midlands Metro expansion, which is well underway, is expected to boost property prices nearby by up to 6% – circa £14,000 on average.
Furthermore, this burgeoning city is showing no signs of stopping, with the 2022 Commonwealth Games, HS2 and Birmingham Smithfield Regeneration all in the pipeline, ready to thrust Birmingham even further into the limelight of a global stage. Job growth is expected in its thousands and demand from Londoners, due to HS2 reducing commute time between the two cities to 46 minutes, is being predicted to revolutionise the housing market.
Leeds
One of the fastest growing cities in the country, Leeds has enticed nearly 10% of London leavers to make the North their home annually over recent years. It’s no surprise then that Leeds is fast becoming one of the most exciting buy-to-let hotspots in the UK.
As far as regeneration goes, Leeds has several major projects in the pipeline, notably a £3 million revamp of Leeds City Station, and a £270 million facelift to the ‘west end’ of the city – the 2.8-acre ‘Lisbon Square’ site, which will almost double the size of the current city centre and boost the city’s economy in the process. A further £18.6 million is earmarked for three more projects: transformation of City Park in the South Bank, redevelopment of Temple Green Park and Ride and a scheme to renovate older homes in the Holbeck area of the city.
Manchester
Manchester has seen a vast array of regeneration over the last 20 years or so, perhaps the most notable being Spinningfields – a £1.5 billion regeneration project dubbed the ‘Canary Wharf of the North’.
However, like Birmingham, there is still a heap more to come, which will no doubt continue to entice the many investors already singing this Northern city’s praises.
The largest of these plans include the £800 million NOMA project in the north of the city, set to transform nearly 4 million sq.ft into office, retail and leisure space, plus £1 billion to regenerate the Ancoats and New Islington areas of Manchester. In addition to this there are also plans to renovate three key train stations – Oxford Road, Piccadilly and Victoria, which will mean better, faster connectivity across the city.
Slough
Once considered the underdog, Slough is now enjoying around £3 billion in investment and regeneration and regularly tops the list of popular destinations for London leavers – nearly 46% of homes are let to those leaving the capital.
This up and coming town sits on the Crossrail route, which in itself has been instrumental in help boost house prices over the past ten years and has been a catalyst for the town’s regeneration plans.
Development already in place includes The Curve – a public arts and library venue – plus several leisure and sports facilities (including a beautifully designed ice rink). In the pipeline are plans which will help transform Slough’s main high street, via a complete redevelopment of the old Queensmere Shopping Centre in the town centre – a site spanning nearly one million sq.ft of office space and 500,000 sq.ft of retail units.
Across the wider town centre, a number of housing developments are appearing, designed to house the rising population moving to the town. One of these is The Metalworks – a new apartment development that is set to complete Q1 2021.
Andy Foote, director at SevenCapital commented: “Regeneration is all about placemaking; transforming an area into somewhere that is attractive to the public as a place to enjoy living, working, socialising and relaxing. That includes having the right infrastructure to improve connections to key locations, for commuting in and out. All of this is what helps to attract and increase demand from tenants, which is key to a successful investment.”
For more information visit sevencapital.com.
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