David Cameron has told investors from southeast Asia to forget about London and place their money into the cities of northern England.
- Southeast Asian investors have been told by the British Prime Minister to invest in the north of England
- Cities such as Manchester will soon benefit from £7 billion worth of government investment
- High yields and lower property prices have already seen swathes of private investors purchase property in Manchester
David Cameron has urged southeast Asian investors to view the Northern Powerhouse of the UK, as a place where they can get their highest return on investment.
Business leaders from Manchester – the primary city in the new plans – joined the Prime Minister on his trip to Singapore and told local investors that ‘UK investment’ does not mean London.
Mr Cameron’s words echoed what investors in the UK have known for some time, namely that real estate in regional cities such as Manchester offers higher returns than the capital. HSBC recently named Manchester as the UK’s number one buy-to-let hotspot, as it offers investors higher yields than are available in London and the prospect of strong capital growth.
The government’s £7 billion plans for the Northern Powerhouse will be integral to the city’s future growth and as soon as the Conservative Party was re-elected, northern cities became its first priority.
George Osborne used his Budget speech to confirm that Manchester would be the first city outside London to have powers devolved to an elected mayor’s office, while he also explained that the city would benefit from unique planning powers.
Some investors in Southeast Asia are already ahead of the curve. As early as April it was reported that, due to fears of an overheated domestic market, investors in Hong Kong were seeking assets in the north of England, particularly in the private rented and student property sectors, where rental yields are double those in London and property prices much lower.
Now that David Cameron has highlighted the investment potential of the Northern Powerhouse on an international scale, many more investors may follow suit.