The UK’s hottest new property investment location – York – The Gas Works, YO31
It’s safe to say that, for quite some time, cities with a very similar investment story have been the focus of investors in the UK. These are the cities where residents had to both live and work. But when a pandemic comes along, those driving factors change. Never before have where we live, our health and our happiness been so important. And as such, the focus of sound investment locations has shifted. York is not only an aspirational location to live, but due to a number of economic factors including severe undersupply, it now presents itself as an incredibly robust investment location.
With the refocus on lifestyle and family, coupled with the shift to remote working, many professionals are no longer forced to live in the same location as their employer. For the property market this means that the provinces are witnessing the arrival of thousands of new residents who have fled the larger cities for a more idyllic life.
Naturally, when we see a change in the market of such magnitude, we want to be part of it, and we want to share it with our clients.
Why invest in the York property market?
York is currently seeing record market growth with analysts at Savills predicting 28.2% capital growth over the next five years. That figure will certainly be re-forecasted given the initial 4.5% prediction for 2021 has just last week been surpassed by a whopping 9.6% (Nationwide Building Society June 2021) and that is only half-year figures!
Many UK businesses have embraced remote working, which has given employees the freedom and flexibility to operate from homes anywhere in the country. There is less pressure on workers to remain in London and the Home Counties, so many are taking the opportunity to explore more of the UK. In addition, the domestic holiday market (“staycations”) has brought more people to York and inspired them to move there.
York is widely renowned for its history and architecture, attracting 9 million visitors every year to its quaint streets and stunning Minster. The city is the UK’s most visited destination outside of London and Edinburgh, providing 800 million GBP to the city’s economy per annum. In addition, York’s profile is on an upward trajectory with the current government proposing to relocate the Department of Environment, Food and Rural Affairs to the city with a view to creating additional economic opportunities.
The city provides fantastic opportunities for property investors in both the long and short term lettings markets. Serviced accommodation investment has become extremely profitable for savvy investors. Investors are able to double and often triple their returns by letting their property to short term tenants, for both leisure and business use. With York having such a large visitor base you would expect a vast array of hotel rooms to be currently operating in the city; this, however, is not the case. Despite welcoming 9 million visitors through its doors each year, there are only approximately 4,000 hotel bedrooms to accommodate them. This creates massive undersupply, not only driving up per-night prices but creating an unmissable opportunity for smart investors to take advantage of the supply/demand imbalance by letting their properties as a serviced apartment.
Life in York
York itself is a fantastic place to live. The stunning historic city has York Minster at its heart, while the ancient defensive walls provide incredible gateways into town. It’s listed as one of the safest places in the country to live, while its largely pedestrianised centre makes shopping a pleasant pastime.
York is also a great launch pad, with Leeds and Manchester within striking distance. London King’s Cross and Edinburgh are just under two hours away by train – good news if you’re working remotely for a company based in a capital city (you’ll probably have to show your face once in a while!). York is only 23 minutes to Leeds Bradford Airport so global connections are easily within reach.
Why choose The Gas Works?
York has not hitherto seen a development of this standard, and The Gas Works is set to be the city’s most iconic new luxury residential development. The level of amenity and green open spaces being one of its many attractive features, including an edible garden to boot!
Landlords investing will benefit from 7% net yields for 5 years along with the strong capital growth expected in the city over the period.
Invest in the York property market – find out more
We are excited to offer units starting at £199,950 with completions Q4 2022.
Please call me, Adam Dockley, on 020 3633 4440 to find out more.