What exactly is the UK’s ‘Northern Powerhouse’?
It was almost a year ago that Chancellor George Osborne first announced the Government’s plans for UK’s "Northern Powerhouse", while on a trip to Manchester's Museum of Science and Industry.
Since the Chancellor’s original introduction of the project, the “northern powerhouse” is now a well-recognised UK initiative. Stockton South MP James Wharton has been appointed minister for the northern powerhouse; highlighting the government’s dedication to its continued success.
What exactly is the Northern Powerhouse?
"It's a concept, rather than any actual, physical thing at the moment," explained Ed Cox of think tank IPPR North. The Northern Powerhouse is an initiative designed to bridge the gap between economic growth in the north and south of the UK by increasing investment into northern cities; specifically the ‘core cities’ of Manchester, Salford, Liverpool, Leeds and Sheffield. It is an attempt by the government to corral the North’s 15million-strong population into a single collective force that could effectively rival London and the South East.
The project has already contributed to substantial economic improvements in the north. With a GDP of almost £350billion, if the Northern Powerhouse were a country it would be the 10th biggest economy in Europe.
Investment into the Northern Powerhouse, both public and private, is not showing any signs of slowing down. Labelled the top investment destination in all of Europe, the Northern Powerhouse offers the lowest corporation tax in the G20 (at just 18%). This has led to an influx of businesses setting up shop in the major northern cities of Liverpool, Salford and Manchester. Salford’s £550million MediaCity development is already home to media giants BBC and ITV, as well as Salford University’s Media campus and 50 other businesses from all over the world.
Added to the millions worth of private investment, the UK government has also pledged substantial development capital, including a £150billion investment into health, £45billion on schools and £13billion on improving transportation links. Projects such as the HS2 and HS3 high speed rail lines are set to significantly improve the connectivity of the north, drastically improving the ability of the Northern Powerhouse cities to function as a single cohesive economy.
Property in the Northern Powerhouse
What all of this means for those considering buying property in the Northern Powerhouse is that now is undoubtedly the perfect time to invest.
As the North’s economy grows and more businesses set up in the region, demand for residential property will inevitably increase. This means that a property in Liverpool offers outstanding capital appreciation potential – for both short and long-term property investments.
Average property prices in Liverpool have risen 76% in the last decade; and 41% in the past 3 years alone. Furthermore, the substantial demand for property in Liverpool from “generation rent” means landlords are benefitting from excellent rental returns.
Our Northern Powerhouse Property Investments
Select Portfolio has a range of properties available for investment within the Northern Powerhouse. As a relatively new initiative, property prices within this region are still significantly lower than in London but are rising rapidly and, as such, offer almost unheard of capital appreciation potential.
One Wolstenholme Square is a brand new £40million residential development in the heart of Liverpool City Centre, providing breath-taking panoramic views of Liverpool’s iconic skyline and the World-Heritage waterfront. Currently priced 22% below RICS market value, purchasers can expect yearly returns of up to 8% for 3 years, and outstanding capital appreciation.
St James Court, situated in Liverpool’s sought-after Baltic Triangle area, is a brand new development of one, two & three bedroom apartments, offering rental returns 7% NET p.a. from a fully managed local agent. Apartments will be finished to the very highest standard, with contemporary fitted kitchens, modern bathrooms and high quality internal finishes; perfect to appeal to professionals looking to live and work at the heart of Liverpool City Centre.
Victoria House is a residential apartment block in the centre of Liverpool, comprising 14 studios and 49 one bedroom apartments and a further 15 two bedroom apartments currently planned for the top 3 floors. Located opposite James Street Train Station and Liverpool ONE shopping precinct, this development is perfectly situated for those looking to commute within the Northern Powerhouse.
Our central Manchester development is a striking waterfront residential complex just minutes from Manchester City Centre, offering rental yields of up to 5.48% within what has been referred to as the “capital of the Northern Powerhouse”. High specification one, two and three bedroom apartments are now available, with phase 1 estimate for completion Q3 2016.
Newton Manor care home is a unique alternative to traditional buy-to-let property investment, offering 8% NET returns assured for 25 years, with zero ongoing costs and a 125% buy-back opportunity in year 25. Available for just £65,500.
For more information on our Northern Powerhouse developments, and why this region offers such a brilliant investment proposition, call our team of experts today on +44 (0)1202 765011 or email [email protected]