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Northern England is the most popular area for property developers to increase investment over the next two years, according to research by property finance company Together.
Nearly two out of three (65 per cent) of property developers plan to substantially increase investment in Northern England over the next two years as the Northern Powerhouse drives interest across the region.
Northern England also topped the poll when developers were asked to rate the best region for development opportunities against the rest of the UK – 57 per cent earmarked the North East while 42 per cent pinpointed the North West. Wales chosen by 40 per cent and Scotland by 38 per cent were also strong contenders for development.
However, developers were less keen on Yorkshire and Humberside (22 per cent) and the South East (13 per cent).
Property developers were almost unanimously supportive of the Government’s Northern Powerhouse initiative in Northern England, with 96 per cent describing it as having had a positive effect, of which 64 per cent said it has been ‘very positive’.
Property investors asked also believe that the biggest development opportunities are in houses and flats – 91 per cent of developers say house building offers the best opportunities while 80 per cent highlight the opportunities in flats – well ahead of other potential developments. The next most popular option was semi-commercial properties chosen by 37 per cent of those questioned in the nationwide study.
Andrew Charnley, head of corporate relationships at Together, said: ‘Given the uncertainty around Brexit and the prospect of tougher economic headwinds, it’s encouraging to see developers remaining so bullish, particularly when it comes to the North. Our own experience reflects these findings having supported a significant number of new developments in the North with a healthy future pipeline too.
‘The chronic supply/demand imbalance in residential housing is creating the biggest opportunities yet many developers continue to be hampered by obstacles such as a shortage of suitable sites and access to finance.’