A new promotional video has been revealed showcasing the investment potential the Northern Powerhouse has to offer not only UK investors but also International businesses. The video is part of the government’s bid to capitalise on the huge financial potential the north of England has to offer. In addition to the exposure that the Northern Powerhouse has recently been receiving, the government is also investing a massive £208 billion over four years to help improve healthcare, education and transport. (1)
UK & International Investment
Both national and international investors were reported to have flooded the UK property market before the imposing Stamp Duty rise at the start of April. Some investors took the opportunity to splurge on a property in the capital, whilst others headed north to find affordable and much larger properties to add to their portfolios.
Amongst the crowded property market, Cherie Blair was reportedly adding to her family’s property empire. The former Prime Minister’s wife, was one of the Northern Powerhouse investors, who added a Manchester property to the family’s portfolio. The Guardian reported that files for their company, showed that they took out a mortgage on four apartments in the north-west shortly before the new tax for buy-to-let landlords came into force. Properties on the same street as the ones that have just been bought by the Blairs, have recently been valued at £75,000 to £95,000 for a one-bedroom apartment. According to The Guardian report, the Blair family now own at least 31 flats and 10 houses since Tony Blair left 10 Downing Street. (2)
According to a recent Independent article, 85 percent of National Association of Estate Agents were reported to have witnessed an increase in buy-to-let activity ahead of the Stamp Duty deadline. (3) Investment in northern cities such as Manchester and Liverpool is said to now be up by 100 per cent from Far East investors, as increasing numbers of Chinese property investors turn their attention away from the capital to seek out more affordable property in the north. (4)
Greater Manchester, Capital of Business
With the help of the UK government’s £208 billion investment and much needed international interest, Greater Manchester could soon become the UK’s capital of business. Yes, London is currently home to thousands of UK and overseas businesses headquarters, but with such investment, and opportunity to grow your business, in a fresh, spacious and new business environment, Greater Manchester might tempt more and more companies to move to the greener pastures of the north.
In fact, a company that currently rents an office in London could save themselves thousands of pounds in rent by relocating to the north. The money they could potentially save on rent, could be put to better use by employing higher skilled professionals or by increasing their own marketing budget.
Relocating to the North, Great for Business
Research, carried out by the London Stock Exchange found that almost 80 percent of the fastest growing stock listed companies in the UK were headquartered outside of London, with Manchester and Leeds among those cities leading the way. (4)
London has been renowned for it’s incredible hub of international high flyers, with many professionals being given the opportunity to mix, mingle and have lunch with seriously influential people in the business world. Yes, it is important from a business point of view for your employees to have the chance to make such connections and strengthen their bonds with like-minded professionals, but the financial stability of your company, and the well-being of your team is also important.
London can be extremely expensive to rent office space, leaving companies struggling to make ends meet. Those that have offices, find that they are limited to space and so their growth can be stunted. Property in the north is far more affordable, especially to rent office space, and you often find that you can afford much larger and spacious offices than you ever thought possible in London.
The average cost of a 450 square foot office in Euston, for example, on a long lease would cost approximately £40,950.00 per year including rent, rates and service charges. Whereas you can find a similar size office in Old Trafford, Manchester for £3,600 per year, which has the added bonus of on-site parking. (5) (6) Relocating to the north can also give your employees the chance to finally get their foot on the property ladder. With the average property price in Manchester City Centre at £170,083, employees can begin to save towards a 20% deposit (£34,016). (7)
In addition, commuting from the outside of London, to work in the city centre can be a stressful and tiring daily routine. In the north, employees can easily work and live close to their office without breaking the bank, meaning they can reduce their stress levels and enjoy a more relaxing working day. Moreover, the North of England means cheaper employment and the UK itself has one of the lowest corporation tax rates in the G20, falling to 18 percent. (8)
Northern International Hub
Manchester is not the only city in the UK that is set to impress on an international scale. In fact, Liverpool has, once again, been given the honour of hosting this year’s International Festival of Business. The city will see business owners, investors and entrepreneurs from over 90 countries attending the festival. Liverpool and Manchester are set to be key players on the international stage in the next few years. (9)
The Northern Powerhouse is set to raise property prices in the north of England, as more companies open their headquarters in the north, and investors rush to snap up the far more affordable property investment opportunities currently available.
The Heaton Group specialise in the development of high-quality homes of multiple occupancy. To find out about our latest developments, please don’t hesitate to contact our team.
9. IBF 2016