Generally speaking, when a local economy is performing well, so too will the property market. In the case of Plymouth, economic indicators such as manufacturing activity and employment data are showing encouraging signs as we move into 2017.
In turn, real estate becomes a safer investment, ensuring a high-quality of buyer or tenant is more likely to stay in the area and thus enquire about property.
Plymouth Council has recently announced plans to inject a massive £266 million on numerous development projects within the city. This has been aided by a £43.57 million investment as part of the Growth Fund across the South West LEP area.
A new £50 million railway station will be constructed, aided by a £4.3 million government investment, which includes new shops, offices and a modernised multi-storey car park. Likewise, a new cruise terminal is also set to receive the required council funding and could be completed by 2020.
To alleviate the lack of internet signal over the South West’s rural areas in particular, a £9.4 million investment in superfast broadband across Devon and Somerset is expected to provide comprehensive coverage by 2020.
Focusing on education, other multi-million pound projects include the South Devon College Hi Tech Centre and ‘Devon Communities Together’ youth skills scheme. £2 million will also be spent on two of the city’s primary schools to deal with an expanding population.
Any fears after the EU Referendum have quickly subsided in the South West as the latest Business Trends Report by business advisers BDO LLP reveals manufacturing optimism has hit a 20-month high.
Likewise, the Confederation of British Industry’s (CBI) last report shows that manufacturers are increasingly optimistic over their exporting prospects and reporting strong growth in domestic orders.
Plymouth voted strongly to leave in the referendum – 59.9% against 40.1% – meaning that any doom and gloom over invoking Article 50 isn’t likely to affect local business decisions either.
With stable economic growth and increased investment, the local employment sector is lifted. More people are likely to stay or migrate to the area, and so more people will need somewhere to live. For buy-to-let investors in particular, this is a fantastic confidence boost.
Property experts predict that Plymouth’s house prices will rise modestly throughout 2017, fuelled by these impressive economic forecasts and increased investment. Representatives of the local estate agents’ Julian Marks, Lang Town & Country and Luscombe Maye have all remained optimistic and anticipate a return of buy-to-let investors, many of which have now adapted to the new stamp duty regulations. However, one word of warning is to act quickly whilst interest rates remain at their current low levels.
Whilst house prices in Plymouth are below the national average, there is still great demand in the lettings market as there are a vast number of students in the area. The demand for campus accommodation outstrips supply by 6-1, forcing many students to seek alternative accommodation. Because of this, one such project to consider is the new Beaumont Square apartments offered by Aspen Woolf. They’re located in a prime city centre area, guaranteed to produce NET yields of 8% for three years and construction has already begun, due to complete this year. Because the University of Plymouth and various campus buildings are located close by, you’re also ensured of student enquiries in the build-up to term time.
If you’d like to know more about the new Beaumont Square apartments, click here or get in touch today.
Did the mention of student enquiries catch your eye? You might be interested to know that student property investment is still hot in 2017.