It is highly debatable just how much influence the government has ultimately had on the success of the scheme, as the regional economies of Manchester, Liverpool, Leeds and Sheffield were already in performing well – certainly in property. However, the increased media coverage certainly hasn’t hurt.
The plans to improve transport links remain the most important potential government investment, ensuring that businesses and customers can easily travel across the region via rail and road. The expansion of Manchester Airport has meant that the region has a real and state-of-the-art gateway to the rest of the world, and especially China.
The region as a whole is now genuinely beginning to challenge the South East in certain areas, if not the GDP or GVA of London, but certainly in terms of attracting the best talent and growth. Central London and the South West are both struggling in terms of rents and house prices, leading investors to look North.
The latest data from Hometrack suggests that the Northern powerhouse has come out on top. Higher levels of affordability are creating higher levels of demand which is leading to impressive growth. Cities such as Manchester and Leeds are doing particularly well, enjoying annual growth of 7.4% and 7% respectively.
Booming local economies, innovation by small and large business, and a tech boom which has created a high number of jobs are the secrets of the success of these cities. Further to that is the fact that university graduates from all of these cities are settling in greater numbers than before, meaning the north is able to retain its best talent.
Talented young professionals need places to live and another card the north has up its sleeve is plenty of room to build new property and plenty of developers willing to do it. Off-plan property has seen a huge influx of domestic and foreign investment come from areas such as China, the Middle East and Africa.
One thing should be said for the Northern Powerhouse, it really lives up to its name and there’s absolutely no reason to believe that it will slow down anytime soon.
If you are looking to invest in the Northern Powerhouse, please have a look at our portfolio today and get in touch!