THE INTERMEDIARY MAGAZINE - REGIONAL FOCUS: THE MIDLANDS - AMJAD IBN-ABDUL
29.06.23
REGIONAL FOCUS: Maximising opportunity in the Midlands.
By Amjad Ibn-Abdul, Tuscan Capital Limited.
The Midlands is one of the most important and populous areas of the UK. Almost six million people live in the West Midlands alone, while the East Midlands is home to almost five million, and the region as a whole account for around 15% of all employment across the entire country.
There are good reasons for this. Cities across the region, such as Birmingham, Coventry, and Leicester, have a rich and diverse history for everything from music and sport to industry and play home to all sorts of employers, large and small. Given its crucial role within the economy generally, housing is undoubtedly an important issue for the area.
Across the Midlands, there have been noticeable increases in property values over the last year. In the West Midlands, the typical property is now worth £273,000, which is up by 7% - or £16,800 in cash terms - on the same point 12 months ago.
While the East Midlands has seen less impressive growth, it has still moved up by 6% - or £15,500 - to an average of £258,000.
While this capital growth has been important for investors, it also demonstrates how affordable the area is, particularly in comparison with London. That achievable price point is useful not only for investors looking to add to their portfolios but also developers aiming to produce new homes in the region for future buyers.
When it comes to the Midlands, the jewel in the crown is most likely Birmingham. It’s known as the second city of England, and with good reason. As a vibrant, growing city it has benefited from continuous investment in all sorts of infrastructure and projects aimed at boosting the local and national economy.
Little wonder that so many large businesses and organisations have set up roots in the city. We share our office building in the city with the likes of Goldman Sachs, Savills, and the Royal Institution of Chartered Surveyors, which gives you a good insight into the sort of blue-chip businesses that operate in Birmingham, and of course, the property market expertise that can be found here.
Metro Network
An important development, which has further boosted the appeal of the Midlands to property investors, has been the expansion of the Metro system in Birmingham. The tram system offers excellent transport options across the region and is currently benefiting from a substantial expansion courtesy of a £1.3 billion investment from the authorities. It means the Metro tram network will triple in size, taking in more than 80 stops, with the east-side expansion nearing completion.
These sorts of infrastructure developments are an excellent sign for investors considering the region as a whole since they open up greater areas of the Midlands as options for those looking to commute into the city centre for work.
Birmingham’s history as a great area for sports is also an important aspect to consider for investors. It’s not just the region’s long history with football, cricket, and the like, but former sporting venues are actually being turned into housing for the next generation of residents.
Birmingham hosted the Commonwealth Games last year and developed an athlete’s village, which was intended to provide living space for the athletes during the event.
Unfortunately, delays due to Covid meant that the development was not completed in time, but that village is now being turned into residential properties. The first phase of that development has now been completed, comprising almost 1,000 flats, with sales open.
Overall, therefore, there is a strongly positive and optimistic feel about the Midlands, and with excellent demand and the ability to secure strong yields, while accessing plenty of property development opportunities, we envisage a growing interest in the broad range of funding arrangements Tuscan is able to offer here.
Get in touch to find out more by calling Amjad Ibn-Abdul on 07485 581986 or emailing aabdul@tuscancapital.co.uk
Read the June edition of The Intermediary Magazine here.
For more information or to get in touch with the team, please contact us:
Call Us: 020 7846 9030
Email info@tuscancapital.co.uk
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A range of case studies demonstrating examples of previously completed loans can be found here.