November 14 2017 0comment

Property investors identify Nottingham’s potential to deliver high on rental yields

Nottingham has many characteristics that distinguish it as a city with a great economic growth potential. Currently, its economy has a GVA of £12.1 billion which is expected to expand further through a committed investment of over £1 billion in the form of significant infrastructure and business developments in the next three to five years.

Situated in the heart of England, the city boasts an excellent transport infrastructure with strong links via road, rail and air along with a big city nightlife, retail and leisure opportunities in a pedestrian friendly city center that attracts 35 million visitors a year.

With over 50 national and regional headquarters already based within the city and including the likes of Boots, Capital One, Speedo and Experian, this city center is fast becoming one of the most sought after locations for property investment opportunities in the UK.

When comparing house price growth to the last 12 months, Nottingham currently ranks fifth across the UK bringing the average house price to £ 146,500. According to the Land Registry, property prices in Nottingham will grow faster than any other city in the UK with an annual increase of 4.7 percent.

In addition, a strong recruitment pool of 1.1 million people plus two world class universities attracting more than 60,000 students a year and retaining more than 18,000 annual graduates is creating a robust market that will need to meet the high demand and provide better access to opportunities that will be created.

In particular, the UK student housing sector is set to continue its evolution into a global investment market with the proportion of international investment flowing into the market almost doubled in the last two years with Far East leading the way. Foreign investment grew from 35% of transactions in 2014 to 64% in 2016. There was a huge increase in Singaporean investment in 2016, up to almost £1.2 billion from just £35 million the year before. Almost two thirds of this came from a JV between Singaporean sovereign wealth fund GIC and GSA, who acquired over 7,000 beds.

According to research by Savills, investment volumes are expected to reach £5.3bn in 2017 as investor confidence returns after the EU referendum. This is a 17% increase on 2016.

With an aim to capitalize on the booming student accommodation rental market of Nottingham, Property Alliance Group, a 27 year property developer has announced its plans to build its fifth student housing scheme called the Lace Works.

Matthew Jay, Managing Partner at Alliance Investments has said “After successfully selling out student accommodation units in Chester, we are excited to expand into the student rental market of Nottingham with our new, purpose-built housing scheme of 215 units that has facilities and amenities optimized to attract demand and designed to accommodate every need”

He further added, “With two of the world’s leading universities based in Nottingham, property investors have identified the city’s potential to deliver high on rental yields especially in the student accommodation sector and we are happy to cater to the demand that this has created.”

Alliance has a wide range contemporary and affordable residential and student accommodation developments across leading cities in the UK. To find out more and explore their full range of upcoming projects and developments, visit www.alliance-investments.com