23 Aug by Amy Jackson

Investment In The Northern Powerhouse: The Key Driving Forces

Northern Powerhouse Investment

Northern Powerhouse plans have had a huge impact on investment in the UK. Billions are being invested into new projects, infrastructure and regeneration in the core cities of the North. This ambitious plan has generated new organisations, partnerships and investment.

Entities like the Northern Powerhouse Investment Fund and the Northern Powerhouse Partnership have also played a key role in new Northern Powerhouse developments. We take a look at what is pushing the impressive growth and investment forward. Buying an investment property in Northern Powerhouse cities is also increasingly in demand, now more than ever.

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About the Northern Powerhouse

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What is the Northern Powerhouse?

The Northern Powerhouse is a government-led initiative to boost the economy in the north of England. The proposal is a government attempt to address the south-eastern focus of economic activity in the UK. The Northern Powerhouse has six ‘core cities’ – Liverpool, Leeds, Manchester, Newcastle, Hull and Sheffield.

The project was introduced by the Conservative coalition government and spearheaded by George Osborne. The current Prime Minister, Theresa May, has committed to continuing the work on the Northern Powerhouse, promising to “help the great cities and towns of the North pool their strengths and take on the world”.

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What is the Northern Powerhouse Investment Fund?

The Northern Powerhouse Investment Fund aims to help fund the ambitious development programme. It is made up of funding from the UK government, British Business Bank, European Development Fund and European Investment Bank, together with Local Enterprise Partnerships (LEPs). The £400 million Northern Powerhouse Investment Fund aims to assist businesses in the region with growth through funding. Companies can access finance through applications which are granted by Fund Managers. Small and Medium sized businesses in the North have been able to access the finance they need. There is a range of funding options available through the Northern Powerhouse Investment Fund.

By working with local partners, the fund has been able to finance smaller projects with potential for large-scale growth. This leads to an increase in job opportunities. It has also been funding infrastructure projects and new Northern Powerhouse developments. As well as providing access to finance, they provide business support and training through local providers.

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What is The Northern Powerhouse Partnership?

The Northern Powerhouse Partnership is an independent body whose purpose is to coordinate and promote the Northern Powerhouse. They develop awareness of the strategy and encourage participants to work together. The Northern Powerhouse Partnership is made up of businesses and city leaders. They are run by a business led board and are not affiliated to a political party. It also works on the Northern Economic Independent Reviews and Reports.

The Northern Powerhouse Partnership should be one of the forces that will be checking in on the progress of the multiple projects and developments. Government funding alone will not be enough to transform the North of England and private investment is fundamental. Events like the Northern Powerhouse Conference, with over 2,300 delegates in attendance, help build relationships and joint efforts.

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Local Leadership

Local Leadership Projects have also boosted the Northern Powerhouse plan. The government’s commitment to the strategy and it’s contribution to the Northern Powerhouse Investment Fund have certainly played a part in driving progress. The introduction of regional mayors was a huge part of this. The power and resources allotted to them allowed more autonomy for local leaders. Some have argued that the regional mayors don’t have the funds they need to push forward plans. Despite this, these new local officials have made it easier to approve a variety of projects in key city regions.

Certain areas are now Mayoral Development Zones – in Liverpool, there are five. The zones allow specific regions to become the focus of Northern Powerhouse investment and demonstrate the potential success of the widespread investment in the city. With the Mayoral Development Zones, you can see how investment property in one development encourages others to choose the location too.

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Northern Powerhouse Developments

Specific examples of Northern Powerhouse developments include MediaCityUK in Salford, Liverpool Waters and the Advanced Manufacturing Innovation District in Sheffield. Overseas visitors have also been keen to purchase property in the region.

Over 200 investments were completed in the 10 LEP zones in the Northern Powerhouse, and these have driven progress in the area. The Northern Powerhouse Economic Review forecast 850,000 new jobs and an extra £97 billion in the northern economy by 2020.

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Demand for Rental Accommodation in the Northern Powerhouse

A number of students and graduates are flocking to the northern core cities. Increased job opportunities and more affordable living costs are key factors in this. Often these new residents are young professionals, who are looking for rental accommodation with city-centre locations and easy transport links.

Property in the North is significantly more affordable than comparable southern properties. Currently, property development in the region is at an all-time high. The high demand for rental accommodation has been a key role in individuals looking to work and live in Northern cities are looking for high-quality accommodation. New property developments, with modern apartments and studios, can begin to provide this.

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Northern Powerhouse Investment Opportunities

For investors who traditionally would have focused on properties in London or the South East, the Northern Powerhouse has encouraged them to look North and take advantage of the huge new opportunities. From new off-plan apartment buildings to renovated warehouses, property values in the North are continuing to grow. With far lower initial costs compared to the South East, investors are finding they get far more for their money too.

Luxury apartments by RWinvest are a great example of the kind of high quality and modern Liverpool or Manchester investment property that’s needed. With an increase in professionals who have been attracted by new employment opportunities, the demand for city-centre accommodation is growing too. The buy to let opportunities available in the Northern Powerhouse Region offer low initial costs and potentially huge rises in property value.

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