The Northern Powerhouse is an amalgamation of influential cities in the north that hold significant influences on the progressing economy.
One of the main aims is to connect great cities, towns and rural communities of the North of England and Wales in the hope of becoming a powerhouse for the economy. This will be accomplished through advancements in existing transport links, a revolutionary style of governance and augmented investment.
The transformative nature of the Northern Powerhouse has had the power to change and adapt the way people work, live and invest; as well as the economic landscape of the North. The strategy has led the way in terms of attracting regional investment in the UK.
Buy to let investors are flocking to the North in their droves as the region stands enticing with low entry prices and high yields in top performing cities like Manchester, Liverpool and Leeds, where rental yields can be found as high as 12%. In 2014, ex chancellor, George Osbourne announced that a ‘Northern Powerhouse’ and their 15 million strong population had the potential to ‘take on the world’. Osbourne announced plans to invest over £7 billion in creating a joined up economic region. Amongst the plan proposals for £6 billion in investment in road infrastructure, £1 billion in rail infrastructure and investment in science and culture.
Improved connectivity is one of the major draws to the Northern Powerhouse as it aims to bring the cities closer together and form a strong bond that remains resilient collectively. Through transport upgrades such as Northern Powerhouse rail, the programme promises radical changes to journey times as they will be dramatically reduced. This provides convenience for those living and doing business in the North, as well as encouraging new residents to live in the area as commuting times in and out of major city centres are cut.
Another focus of the strategy is closing the economic gap between the North and South. Bridging the North-South divide will aim to strengthen numerous factors in the North. Technology, science and culture are emerging sectors that are thriving through increased investment. As part of the government-encouraged drive to counter the ‘metropolitanism’ of British TV, Leeds has just won the bid to hold Channel 4’s new national headquarters. Leeds beat rival bids from Manchester and Birmingham, proving that the north is a thriving region growing to compete against its Southern counterparts surrounding the capital.
In terms of buy to let, what does this mean? Prices in the south are escalating, leaving a sour taste in the mouths of many investors causing them to migrate up North. In contrast, the modest capital growth prevalent in the North, alongside prosperous returns, make the North an attractive location for property investment. Therefore, companies like RW Invest are increasingly taking advantage of the burgeoning region. The demand for properties in major cities across the North ensure property gold, as landlords can charge higher rents due to lack of supply.
