West Midlands: the case for investment

The West Midlands is the 7th largest of the 9 official regions of the UK and has a population of more than 5.6million (1) Birmingham, the UK’s second most populous city is located within the region, along with Wolverhampton, Dudley, Walsall and Telford (1).

The region is varied, with the rural counties of Shropshire and Hertfordshire that border Wales, to the urban centers such as Coventry and Worcester. (1) The Ironbridge Gorge, a UNESCO World Heritage Site, is located close to our latest opportunity in Telford (2).

Telford, named after Thomas Telford the renowned engineer (3), has recently been named as one of the UK’s fastest growing and most successful new towns (4). Furthermore, a recent report by JLL looking into the potential of large towns and smaller cities, indicates that, Telford was ranked in the top 20 in the economic ranking of shortlisted cities (5).

This economic growth is beginning to be reflected in the region’s house prices. PWCs most recent report on house prices in the West Midlands forecasts that the average house price is expected to rise from £195,000 in 2014 to £261,000 in 2020 (6). That is a 33.8% increase.

Aside from house price growth, the area is expecting to benefit from the expansion of the Ministry of Defense base in Donnington. It is estimated that the development of the army logistics centre will produce an extra £60m each year for the local economy (7) .

The Early Advantage Fund, funded by the ERDF, is making the West Midlands an attractive place for private startups and young businesses too, with £10m having been invested into businesses in the last six years (8).

Tourism bolsters the thriving business economy, and in Shropshire alone, it is estimated that the tourist industry is worth £561m; contributing 9% of the total income from tourism in the West Midlands (9). The 6th largest exhibition centre in the UK, the Telford International Centre (10), boosts visitor numbers throughout the year, and there has been an investment of £250m into the Convention Quarter, including the construction of new hotels, shops and leisure activities. (11)

For young people in the Shropshire area, there are a variety of options for further education, such as the University of Wolverhampton and Harper Adams University, which was ranked in the top 10 for graduate recruitment in the UK (12). The student population may increase the demand for houses of multiple occupancy, an ever popular investment option on Heritage Explorer .

The property currently available for investment on the website in Telford provides the opportunity for investors to quickly and easily diversify their property portfolio.

 

Disclaimer and Legals

Heritage Explorer does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest..

Heritage Explorer is a trading name of HHS which is an Appointed Representative of Resolution Compliance Limited which is not authorised and regulated by the Financial Conduct Authority.

 

Sources

  1. https://en.wikipedia.org/wiki/West_Midlands_(region)
  2. https://www.shropshiretourism.co.uk/ironbridge/gorge-museum/
  3. http://www.history.co.uk/biographies/thomas-telford
  4. http://bsacimeeting.org/venue-accommodation/location-facts/
  5. http://www.jll.co.uk/united-kingdom/en-gb/news/2148/investors-head-in-search-of-smaller-cities-for-capital-growth
  6. http://pwc.blogs.com/midlands/2015/07/pwcs-latest-economic-outlook-points-to-continued-rise-of-generation-rent-in-the-midlands.html
  7. http://www.bbc.co.uk/news/uk-england-31534063
  8. http://midven.co.uk/funds/early-advantage-fund/
  9. http://www.britevents.com/features/fifteen-facts-you-didnt-know-about-shropshire/
  10. http://www.universityrooms.com/en/city/telford/information
  11. http://www.theinternationalcentretelford.com/destination/convention-quarter/
  12. http://www.telegraph.co.uk/education/educationpicturegalleries/11796105/Top-10-universities-for-student-satisfaction.html?frame=2500577