I am from the North, so forgive me if I am biased, but I cannot help but be excited that northern cities are finally being regenerated on a grand scale. Far from being grim, the North can boast of museums, art galleries, improved transport links, high spec apartments, waterside living, shopping centres, expanding airports, bridges, new job opportunities and business initiatives. Northern cities are changing, are changing fast and are changing for the better. Hence the investor, with chequebook in hand, has started showing an interest and the floodgates for residential and commercial investment opportunities have opened.

Why Invest In The North?

Property prices are cheaper, rental yields are higher. Northern cities are being regenerated. Property prices are rising in the North, while remaining static in most of the South. The economy in the North continues to boom and unemployment figures are low. There is also a genuine commitment from developers and local governments to increase cultural interests, facilities and transport links, in order to lure investors and increase job opportunities.

Relocation

Young single professionals from London are relocating to the North, working as accountants, lawyers, brokers and so on with companies that have satellite offices in Newcastle, Leeds, Manchester or Liverpool. Couples with children also relocate to the North because the region offers them the possibility of cashing in their London housing chips and buying a bigger house with a larger garden than they can afford in the South. There are also good schools in the North and these help attract families to relocate. Some businesses are also relocating northwards because business costs, staffing and overheads are lower than in South.

Local Market Forces

It is important, just as with the South, to understand as much as possible about local market forces. Take into consideration before choosing to invest what job opportunities are in the area. Does the area have a university? What are the plans for the infrastructure of the nearest town or city? Are regeneration schemes definitely planned? What is the master plan for the city?

The Northern Way

This is a proposed plan to link all the major northern cities as an ‘extended metropolis’, which could rival London in its economic power. Each city would retain its own identity, whilst together being seen as a single economic unit. This would attract business from the South, generate thousands of new jobs and relieve the housing pressure in the South.

In order for this long-term plan to work, it would necessitate new transport links, homes and business facilities. The new ‘extended metropolis’ would include the cities of Manchester, Leeds and Hull with spurs linking it to Sheffield in the south and Newcastle in the north. This plan is very much in its early stages but is an indication that the North is seen as an area of considerable investment potential.

Owner-Occupiers/Tenants

You will need to assess whether the property you choose to buy will have a market for either owner-occupiers to purchase or tenants for rental. The best investment property will appeal to both markets and this would be important in a downturn. If you wanted to sell the property and were unable to achieve the right price, you could put the property up for rental. Because of these factors a property that can satisfy both markets will always be the safer bet. This ‘appealing to both markets’ applies as much in the North as it does in the South.

How Can I Assess Which Northern City Would Make The Best Investment?

I always recommend visiting the city personally to get a ‘feel’ for the place. You can see with your own eyes whether the city centre is being regenerated or not by walking through it! Look out for skips, cranes and obvious signs of a building programme.

How Big Is The City?

This will obviously affect your market. The bigger the city, the bigger your market. This does not mean to say that there aren’t good investments to be made in small towns and cities but obviously the market will not be as great. As more and more people choose to cut down on their commuting distance to work, living in the heart of a city affords that freedom. If a city has a large workforce and prospects of good future jobs growth, an investment property will have potential to increase in value in a rising market and a potential for rental should there be a downturn.