Over the last few months Nottingham has attracted literally hundreds of millions of pounds of new investment via an array of property developments. This is a region of the UK which continues to go from strength to strength with many new strings to its bow. If you are looking for reasons to invest in property in and around Nottingham you don’t have to look very far.
Redevelopment of Imperial Tobacco site
Since Imperial Tobacco ceased production on the 48 acre Nottingham site back in 2016, there has been speculation surrounding its future. Plans are now firmly in place to redevelop the site in a multi-million pound deal which will bring 500 new jobs to the region. The “New Horizon Scheme” will create an additional 500,000 square-foot of industrial/logistics space much of which has already been taken up. The new development will also take advantage of the regions excellent transport infrastructure with more jobs expected to follow.
Improved tourist attractions
Earlier this month we saw a groundbreaking ceremony announcing a £30 million transformation of Nottingham Castle. This will see the castle become a heritage destination and upon completion in 2020 an additional 400,000 visitors per year are expected. Nottingham city council has been extremely proactive with regards to investment across the city and more enhancements of the area’s tourist attractions will likely follow.
Redevelopment of Unity Square
HMRC has confirmed plans to relocate 4000 full-time employees into offices in Unity Square. Phase 1 of the development should be completed by the summer of 2021 with high expectations for the project. This is yet another example of civil servant jobs being relocated away from London to create an array of regional hubs. The relocation of 4000 full-time employees will also give a significant boost to the local economy and the local housing market.
Nottingham has a huge student/graduate community which is feeding an ever-growing private rental sector. There are numerous property developments emerging right across the city with more expected in the short to medium term. As the local economy continues to grow, and numerous job opportunities emerge, we will see more and more students/graduates switching to full-time employment in the city. This will ensure constant and growing demand for yet more student accommodation and private lets for the professional sector.
A recent survey placed Nottingham joint top with Liverpool when it comes to average rental yields. Rental yields across Nottingham are currently averaging around 6.2% but strong demand from the student community is placing upward pressure on current rates. As a consequence, there is the potential to significantly enhance the 6.2% average yield creating a very strong income stream.
Major investment into the city, a strong employment market, growing student population and upward pressure on already attractive rental yields certainly bodes well for the future. The fact that many students of today will eventually switch to full-time employment in the area will ensure constant and growing demand for further accommodation. It is certainly no surprise to learn that property developers have been attracted to the area in significant numbers.