Birmingham, along with Leeds and Manchester, are all seeing significant developments in construction, according to a survey released by Deloitte.
The UK’s most populous cities after the capital are seeing a surge in housing developments due to many professionals moving out of London and in to areas further north.
In Birmingham alone, the number of office spaces that are currently under renovation and construction skyrocketed by 50% in 2016. Historical data shows that the jump is the highest since 2002.
Deloitte’s data which was published on The Guardian also stated that the new high speed train line is one of the reasons why there has been such growth in the construction industry in Birmingham of late. The closer the rail line gets to its completion date, the more housing, commercial and industrial projects will come to a close in time for its unveiling. Aside from the boom the construction industry is experiencing, private investors are also a seeing a spike in revenues thanks to the growth in housing stocks in the UK.
Here in the UK, the Halifax House Price Index is the longest-running price series based on data dating back to 1983. FXCM says that the housing price information, which is taken from across the entire UK, is used to calculate a “standardised house price”. Housing prices in this index compare values every quarter of the year in order to correct short-term price fluctuations. The interesting takeaway here is that Birmingham has seen a 1000% increase in residential plans in 2016.
Simon Bedford, a partner for development at the Deloitte Real Estate, said that there’s definitely growth and recovery in the UK’s economy despite distress amongst investors that an economic boom was only limited to the streets of London.
“All sectors are active and we conclude that our regional cities are delivering growth and investment at levels not witnessed for many years,” Bedford said.
Experts say that investors shouldn’t worry too much about Brexit as the UK is most likely heading for a Soft Brexit. A Soft Brexit would imply the continuation of various trades, immigration, and close cultural connections with Europe on a whole. A Hard Brexit would mean complete separation from the Eurozone, and a return to the procedures that existed before the UK even entered into the EU.
Across the UK, Leeds also enjoyed a surge in the amount of commercial units constructed since 2007. According to Deloitte, there are now twice as many commercial offices than there are retail units in the city.
As for Manchester, the city has seen over 20 large-scale residential construction projects since 2007. Rentals are foreseen to be extremely high in the coming years not only for residential purposes but commercial as well.
