Recently there has been a huge increase in property investment in the north-west of England, with cities such as Liverpool and Manchester experiencing a massive boom in the sector. In Q1 2018 Liverpool’s investment volumes were more than double that of Q1 2017, rising from £440 million to £965 million according to figures from UK Investment Transactions.
What has led to these record numbers? There are various elements that have cause investors to realise the opportunity of the north-west, including government decisions; growing office and build-to-rent markets; and major property deals.
The Brexit Factor On Investments
The benefits of the Northern Powerhouse scheme have long been a strong pull for investors, but as Brexit draws closer and the future becomes more uncertain many investors are looking for viable cities in the UK outside of London – particularly Liverpool and Manchester. A wide range of investors from around the globe are turning to the north-west and showing much interest in the region.
Office and Retail
The commercial sector in Liverpool, Manchester and the surrounding areas is thriving. 41% of all transactions in Q1 2018 came from office space. Reflecting the rest of the country, the retail sector was slightly behind as consumers increasingly move online for their shopping needs. Despite this, commercial spaces continue to be a popular choice for the region’s investors.
Build-to-Rent
Both Liverpool and Manchester have seen strong investment in the previous year’s build-to-rent sector, something that industry experts predict will continue. A major deal in Liverpool, forward-funded by Invesco and Manchester arena, will create 383 build-to-rent units and has boosted the local market.
Major Deals
The north-west has seen a number of other large deals which have further improved the regional investment market. Liverpool’s India Buildings was bought for £125 million by L&G, followed by a £113 million acquisition by Aviva of 2 New Bailey in Salford.
With Manchester and Liverpool already establishing themselves during the first months of 2018 as investment hotspots it looks promising that the region will have a very successful future.
