Plymouth is on the up with a spate of multi-million pound regeneration schemes set to be completed through 2017. It shows a high degree of confidence lies in the city, augmenting an already high quality of life in the wider South West region.
For prospective investors from both the UK and abroad, this is a very encouraging sign. Redevelopment projects sustain growth for small businesses, create jobs and provide employment stability, leading to a healthier property market and better quality of tenant.
Despite recent clampdowns on the buy-to-let sector, low interest rates should hold for a while yet. However, according to a chief UK economist Howard Archer, the Bank of England will feel compelled to raise these rates at some point. This means that, if you’re looking to take out a buy-to-let mortgage, the time to act is now.
We’ve put together five further reasons why Plymouth in particular is looking ripe for property investment this year.
1. Major Investment
Plymouth is to be subject to a vast array of investment projects over the forthcoming months and years. A massive £266 million investment programme is set to transform the city centre, including the £24.6m Northern Corridor transport scheme, £13m Science and Technology hub and highly-anticipated train station revamp. A new tram-style Metro system is also being earmarked to reduce congestion.
2. Student Sector
Buy-to-let is always boosted by the presence of local universities and Plymouth has two of them in close proximity, as well as three prominent colleges. Students are always in need of accommodation and post-graduates are also likely to remain in the area to find work. Plymouth University is one of the largest in the country with over 20,000 students in attendance every year.
3. Port City
Plymouth is a port city which plays a big part in the city’s tradition, history and culture. Much of the new regeneration fund will be spent on the waterfront, primarily with the regeneration of Millbay docks, increased investment in the Oceansgate marine hub and a new £5 million cruise terminal. In 2020, the launching of the Mayflower will celebrate its 400-year anniversary, which will further boost the tourism sector.
4. Property Boom
Various property speculators expect Plymouth property values to rise through 2017. Despite some uncertainty post-Brexit, the market held up well and Plymouth will always attract buyers looking for a high quality of life. Foreign investors from as far away as the U.S and Japan are snapping up homes in Plymouth because they see Devon property as a sound investment. This has been reported by local estate agents Luscombe Maye, who have also reported high levels of viewings and sales early in 2017.
5. Favourable Rental Sector
The private rental sector in Plymouth is looking a great bet at the moment. It favours cash investors who will get more value than savers would, especially when taking advantage of Plymouth’s steady stream of post-graduates and young professionals who rely on the rental sector. As an investor, scout around for low-entry properties that guarantee healthy yields of between 7-8%, particularly near the city centre and main university campus.
In you’re interested in investing in Plymouth property then Beaumont Square could be ideal for you. Get in touch to find out more.
If you’re still not convinced about why Plymouth is a great place to invest right now, check out our overview of the city.