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West Midlands property investment is something to watch out for. 16 Reasons to invest
We’ve advocated property investment in the West Midlands as part of our evidence-based approach to investing for some time. We believe that investing in this region alongside the North East, North West and East Midlands present the best opportunities for growth in England for property investors.
The West Midlands is an area set for huge investment and significant growth over the next few years. this is thanks to the Levelling Up agenda, the investment that it will attract, and the investment and regeneration coming through the Midlands Engine.
More about the English Regions and property investment opportunities here
There are numerous towns in the region, including Birmingham, Wolverhampton and Solihull. But have you considered some of the smaller satellite towns? Investment is being made across the region and even smaller towns like Stoke on Trent will be able to take advantage of significant investment from the Government, which in turn will attract private sector investment, job creation, and of course, increase the need for quality housing.
But where exactly is the investment coming from, and how will towns like Stoke on Trent and Hereford benefit when they are up against stiff competition from the likes of Birmingham and Wolverhampton?
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Early £196 million of investment for 11 projects in the West Midlands to regenerate town centres and high streets. This will include upgrades to local public transport, and investment in cultural and heritage assets in Birmingham, Bromsgrove, Bedworth, Cannock, Stoke-on-Trent, Wolverhampton, Solihull and Kidderminster.
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New Education Investment areas for Dudley, Stoke-on-Trent, Walsall, Sandwell and Coventry and support for struggling and underperforming schools.
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£146 million from the Future High Streets Fund to help pandemic recovery and regeneration in West Midlands towns.
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The Towns Fund will invest £328 million in 15 towns in the West Midlands including Wolverhampton, Hereford and Nuneaton.
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£146 million from the Future High Streets Fund to help pandemic recovery and regeneration in West Midlands towns.
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£400 million for the Midlands Engine Investment Fund. This compares favourably to the £660 million available for the Northern Powerhouse in the North of England.
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Department for Business, Energy and Industrial Strategy (BEIS) will invest £100 million between 2022/23- 2024/25 in three new Innovation Accelerators. One of these will be in the West Midlands to support the Midlands Engine.
- £58 million towards rail improvements, improving access to jobs in Birmingham, Walsall and Wolverhampton.
- Nine new Institutes of Technology. One of these has been proposed for the West Midlands (Newcastle and Stafford Colleges Group).
- £17 million funding has been announced for new facilities at the Black Country and Marches Institute of Technology in Dudley. THis will support delivery of higher-level technical training that meets the needs of local employers and students.
- 20 places in England are to be selected that demonstrate strong leadership to invest in economic transformation, starting with Sheffield and Wolverhampton which have already been allocated £20 million levelling up funding.
- The West Midlands will receive £28 million of the £300 million of local brownfield funding to help regenerate brownfield sites so that they can be redeveloped.
- The Government wants to expand regional devolution and so will open negotiations immediately on trailblazer deals with the West Midlands and Greater Manchester. These will act as the blueprint for other mayoral combined authorities across England.
- The West Midlands has the country’s fastest growing technology sector. It also has one of the highest levels of 5G coverage. However, it also has the lowest level of start-up businesses in the digital sector. The West Midlands Smart City Region Programme aims to create opportunities for businesses to start up in the region in digital, health tech, smart energy and future mobility.
- £20 million Levelling Up Fund is being made available for the Wolverhampton City Living Quarter.
- £16 million Local Growth Funding towards the Hereford city centre transport package. This has currently been paused by the local council.
There are opportunities for property investment in the West Midlands. It is, quite clearly, a region to watch. Towns like Stoke on Trent have funding earmarked for them to improve infrastructure, high streets, local amenities and education and business opportunities.
These smaller towns will also benefit from investment in the cities like Birmingham as access to the jobs market there is improved through rail infrastructure improvements Funding is being made available across the region to scale up critical skills that will attract new business start-ups in the high value sectors like digital and technology.
Property Investment in the West Midlands: the opportunities
We have advocated the North and Midlands as regions suitable for the property investor, whether a seasoned pro or starting out. That view hasn’t changed, but with the value of capital proposed for investment in the Levelling Up White Paper, the opportunities for investors will only improve.
Investment in skills locally will improve the workforce already living in the region. And there will be an influx of skilled workers looking for quality housing. With a current shortage (37,900 homes are required in Birmingham alone), of quality housing, property investors can expect strong rental yields. As a region with long-term economic development set to begin, and house prices continue to rise in the West Midlands, capital returns are likely to be strong as well.
The answer to the question is Birmingham is a good place to invest in property is, of course, yes. But consider the opportunities in the satellite towns, and compare them to your existing property portfolio, and your business objectives for the future.
Contact us here for more information about property investment opportunities in Stoke on Trent and the West Midlands region or read more about property investment here
