By Julian Ramsden, Director | 15 April 2016
Last month was MIPIM, which is the big event in the annual international property calendar. Interestingly, Nottingham was in the spotlight.
Nottingham has been making a major push to attract property investment, and for MIPIM the council put together a compelling prospectus for investors.
Some of the information is aimed at corporate-level investors, but there’s insight that individual buy-to-let investors should take note of:
- There is an active, young workforce (which equates to robust tenant demand)
According to Nottingham City Council, the city has a workforce of 1.1 million people. What is especially interesting for buy-to-let investors is that it:
- Is number one for graduate employers
- Has one of the youngest workforces of the core UK cities
This equates to a robust tenant market that’s demanding high-quality rental accommodation.
- There is a large student population on top of that
Nottingham is home to two world-class universities with growing student populations.
Like most universities, the University of Nottingham and Nottingham Trent University simply don’t have the ability to offer housing to most students. This means there’s a lucrative investment opportunity in purpose-built student accommodation (PBSA).
We’re seeing PBSA offering 8% net rental income guaranteed for two years – a compelling case for buy-to-let investors.
- Regeneration is creating opportunities for long-term growth
Nottingham is a top 10 city for growth, and that means there are initiatives like £800 million in investment infrastructure underway.
For example, following £200 million of investment and the Nottingham Express Transit, the transport system is now one of the most efficient in the country.
Improved connectivity is driving up rents both in the city centre and in commuter areas (as an example, a recently launched development had 70 viewers in four hours).
Take note: there are interesting opportunities for savvy buy-to-let investors
Nottingham is often overshadowed by other regional cities, but the city has come into its own in terms of what it offers buy-to-let investors.