The soaring property prices of cities like Manchester, Liverpool and Leeds have been well documented, but these certainly aren’t the only cities within the Northern Powerhouse that are showing promise for property investors. Last year, property prices in Nottingham jumped six per cent from the previous year, and 14 per cent from 2014 (as revealed by HM Land Registry’s latest figures). The average house price in this East-Midlands city, home to the legend of Robin Hood and his Band of Merry Men, now stands at just under £180,000.
But what has caused this impressive growth in Nottingham’s housing market, and why should investors look beyond the core cities of the Northern Powerhouse – Manchester, Liverpool, Leeds, Sheffield and Newcastle – which are already being flooded by investors, to the enterprising student city of Nottingham?
High student population
Nottingham is home to both the University of Nottingham and Nottingham Trent University, which have a combined intake of over 60,000 students – all of whom need suitable accommodation. With student accommodation being available for purchase at a significantly lower rate than typical residential properties, alongside continual demand, Nottingham offers a great opportunity for investors to make returns on student buy-to-let and even build-to-let projects. While there will always be a ceiling on the amount a student flat or house can be let for, due to limited student budgets, you can be sure of securing a tenant year after year.
City of youth
Nottingham is a very youthful city, with 25 per cent of the population aged between 16 and 24. With people in this age category most likely to be renting, before they’re able to consider taking their first steps on the property ladder, property investors looking to gain a solid rental income will have little difficulty finding tenants in this city – especially if they buy properties close to the universities, city centre and industrial hubs.
Investment and regeneration
Contrary to many parts of the UK which have been tightening their belts in light of economic uncertainty and budget restrictions, Nottingham Council has demonstrated a commitment to enhancing the city and making it more appealing to ambitious professionals through a range of regeneration projects. The city has developed a strong business centre, with an Enterprise Zone offering reduced business rates and high-quality corporate facilities to businesses from the healthcare and technology sectors; a research-led Science Park opposite the University of Nottingham; the MediPark which services life science and medical technology companies; and the famous Creative Quarter which boasts everything from boutique retailers and coffee shops to enterprising technology start-ups, game designers and contemporary art galleries. Each of these projects have received substantial investment, and are now attracting swarms of professionals, industry leaders, tourists and students to the area.
Excellent transport links
A city with efficient and reliable transport links will always retain value, and Nottingham is not only well-connected to the motorway; it also benefits from the East Midlands Airport being just a half-hour drive away. The city has also invested in its local bus and tram services which make it easy for students, professionals, residents and visitors to travel around the city and experience all it has to offer.
Nottingham has been ranked in the top five European cities for house price growth (Knight Frank Global Cities Residential Index) and it’s not too difficult to see why. With an ongoing increase in the price of property, a captive student market in need of good-quality accommodation, and the promise of continued development and regeneration, Nottingham might just tick all of your property investment boxes.
If you’d like to find out more about the property market in Nottingham, or any other UK-based city, you can speak to our private client managers at firstname.lastname@example.org or 01483 230 430.
Image: Wollaton Hall, Nottingham