More developers looking to north
PROPERTY developers in the UK are increasingly looking to the opportunity-rich north of England.
That’s according to research from Cheadle-based finance specialist Together.
A national study showed close to two-thirds (65 per cent) of developers plan to increase their investment activity in the north ‘substantially’ by 2021.
The north east topped the list of regions where property developers see opportunity to invest, followed by the north west.
The national study showed 57pc of property developers surveyed saw development opportunities in the north east, compared to 42pc in the north west.
Property developers were on the whole supportive of the government’s Northern Powerhouse initiative, with research showing 96pc believed it had a ‘positive effect.’
Of which, 64pc said it has been ‘very positive.’
Wales and Scotland – at 40 and 38pc, respectively – were also seen as regions ripe for investment, while Yorkshire and Humberside and the South East fell behind at 22pc and 13pc, respectively.
Andrew Charnley, head of corporate relationships at Together, said: “Given the uncertainty around Brexit and the prospect of tougher economic headwinds, it’s encouraging to see developers remaining so bullish, particularly when it comes to the north.
“Our own experience reflects these findings having supported a significant number of new developments in the North with a healthy future pipeline too.”
However, Mr Charnley warned that, while the ‘chronic’ supply and demand imbalance is creating opportunity, developers are met with obstacles, including a shortage of suitable sites and access to finance.
While one third (33pc) of developers said they worry about Brexit uncertainty, more than half (51pc) cited a shortage of available sites as an obstacle.
This was followed by insufficient access to finance (47pc) and a lack of government support (40pc).