Midlands Engine Strategy to provide boost for housing market
Yesterday, the Government launched its Midlands Engine Strategy, which is widely expected to give the property industry in the region a welcome boost.
It is expected that the £392m package of investment into the project will provide a shot in the arm similar to that seen with the Northern Powerhouse project.
Midlands Engine
The investment will give support to projects that include a global hub for space technology in Leicester, £12 to improve roads near Loughborough and £11m for regeneration works in Derby city centre.
Sir John Peace, chair of the Midlands Engine, noted: ‘We have come together across a wider geography than has been attempted before-to deliver a collective view of what the Midlands can achieve. We are confident in our physical, economic, commercial and cultural assets-and in our people-and our potential to contribute more to the success of UK plc.’[1]
‘We believe that with the right investments in place the Midlands can raise its performance to match global cities like Singapore, Shanghai and New York. We can grow faster and generate more wealth, helping the government to create an economy that serves everyone well,’ he added.[1]
Midlands Engine Strategy to provide boost for housing market
Infrastructure
Richard Connolly, CEO of Rentplus, said: ‘The money announced yesterday to build the infrastructure necessary to make developments viable, to regenerate town centres and the recommitment to Garden Cities and Villages will provide a welcome boost for housing levels.’[1]
‘The National Housing Federation’s Home Truths report shows that both the East and West Midlands’ housing markets are just as broken as the rest of the UK. In the East Midlands the income needed for an average mortgage is £43,000, while the average salary is just 26,000,’ he continued.[1]
Concluding, Connolly said: ‘In the West Midlands house prices are over eight times average salaries. Therefore for many workers traditional single ownership properties will remain beyond their reach even with a substantial increase in housing supply.’[1]
[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/3/midlands-engine-strategy-will-provide-a-welcome-boost-for-housing-levels