Investors tracking house price growth across the UK are heading to Nottingham and the East Midlands as they continue to outperform the UK average.
JLL, reporting on the residential market and emergence of a new Living sector including Private Rented Sector (PRS) and Student Residential, said Leicester in particular was enjoying increased interest with a 5 per cent rise up to Q3, with Nottingham and the East Midlands just under 3% and Derby on a par with the UK, at just over 1%.
Anabel Christmas, residential director at JLL talking about the increased investment in the East Midlands said: “While previously the region has been considered a secondary location, with many investors focusing on the Big 6 like Birmingham and Manchester, the increase in values has changed their appetite.
“This is combined with a reported increase in residential rents as new schemes coming forward offer increased supply and quality and the opportunity for a continued upward trend.”
A number of PRS schemes are being brought forward that reflect the new standard of accommodation driven by consumer demand, with a wide range of amenities including home work space, shared lounge, roof terrace, cinema and games room with 24 hr concierge.
“Where flexibility is the key in a world of greater social mobility,” added Anabel “We’re seeing a cultural shift towards experience over possessions from the younger generations.
“Investment into this sector shows a shift towards the European style co-living trend, with a mixed age of tenants targeted including retirees, downsizers, young families, professionals and graduates who are being drawn to a backdrop of new leisure and lifestyle opportunities in the city centres.”
PRS is also responding to the rise in the quality of accommodation in the student residential sector which JLL predicts will continue its upward trajectory with 12 large schemes under construction in Nottingham City Centre.
“With large businesses growing in the region, it’s crucial we have the accommodation to secure the talent produced in the city’s world class universities, to capture occupiers at right time of life,” Anabel concludes. “And as news that the Oakervee report leaked to The Times is recommending that government press ahead with HS2 in full despite concerns over rising costs, it’s also important we have the right residential product in place to support the economic benefits to be gained from Toton and our increased connectivity in the region.”