Investment in infrastructure is perfect for property investors
A recent report found that Leeds could be entering a period of explosive economic growth. The potential hinges on investment in several areas, including housing and office space, education and skills, and transport. If this investment is made, then the sky could be the limit for early property investment here.
In this article, you’ll learn about the potential of Leeds to reassert itself as one of the UK’s major economic centres, and how massive investment is already underway.
50,000 new jobs by 2030 in the knowledge industry
That’s what the report by Cambridge Economic Policy Associates and Cambridge Econometrics forecasts. In a local economy that has outpaced Manchester and Birmingham since 1990, that’s impressive growth. And when it comes to the economic uncertainty caused by Brexit, Leeds is exceptionally well placed to weather any storm.
The strength of the knowledge and service industry is a big bonus for Leeds. It provides the foundation for economic growth in a world in which manufacturing jobs are in decline. As we explained in our article ‘Employers could boost off-plan property investment profits in Leeds’, Leeds has probably the most diverse economy of all major employment regions in the UK. Major sectors include financial and professional services, health, education, legal, and architecture.
Automation is replacing manufacturing jobs, but jobs in the main knowledge-based employment sectors in Leeds are less likely to be affected. With its huge talent base in the knowledge economy, the city is ideally placed to attract inward investment (such as the £1 billion Growth Deal with the central government in 2014 and the £350 million of public and private investment in regeneration).
Investment is a driver of economic success and property potential
The report does warn that the position of Leeds as a leading centre for knowledge economy businesses will depend upon its ability to attract investment. We think that’s true, which is why we’re excited by Leeds as a city and region for property investment.
Investment in education – already underway
One of the main attractions for employers is the education of people available to employees. Leeds boasts a huge student population, and access to a highly educated, young population:
- In 2015, its secondary schools achieved the best increase in GCSE results in the Yorkshire region
- There has been £260 million of funding under the government’s ‘Building for the Future’ programme
- Six secondary schools in Leeds are rated as ‘Outstanding’ by Ofsted
- There are four universities in Leeds, and around 210,000 students from the UK and abroad live here
Without a doubt, excellence in education supports off-plan investment in Leeds.
Investment in infrastructure – already underway
Earlier in this article, I mentioned the £1 billion Growth Deal. That’s the tip of the iceberg. There is around £7 billion earmarked for investment in infrastructure – people, skills, regeneration, and transport. Schemes include the regeneration of inner-city areas, disused housing, and industrial stock.
The area around the High-Speed station – almost 340 acres, and including Holbeck Urban Village, the old Tetley Brewery, and Leeds Dock – will provide 2.7 million square feet of new office and retail space, as well as 5,000 new homes. The City Square will be pedestrianised (a £1.4 billion project). Pollution will be reduced, and travel by bus will be more efficient.
Investment in transport – already underway
High-Speed rail is coming to Leeds, and that in itself will be transformative. But the amount of money committed to realigning transport in the Leeds region is staggering:
- The West Yorkshire Plus Transport Fund plans to invest £2.2 billion here through 2026
- Money will be spent on upgrading road and rail
- A £173.5 million funding package to improve public transport in Leeds was confirmed in April
In Leeds, there will be new Park and Ride services, new bus stops and stations, better road connections, and faster connections to the rest of the region and the rest of the UK.
The Cambridge Economic Policy Associates and Cambridge Econometrics report concludes that Leeds has the foundation for exceptional economic growth; potential, perhaps, unrivalled in Europe. However, it states that this potential requires the prioritisation of substantial investment in transport, education, homes, and office space to be fully realised.
We think you’ll agree, Leeds is already benefitting from substantial investment – billions in investment, in fact. And that is a substantial reason to invest in off-plan property here.
Contact one of the Gladfish team today on +44 207 923 6100, and discover more about the amazing property investment opportunities in Leeds – and to be kept informed of off-plan and new build property investment opportunities in Leeds as they get the green light.
Live with passion,
Brett Alegre-Wood
