In more positive news for Residential Conveyancing Solicitors, the latest IPD Regeneration and the Savills Residential Regeneration indices show an improvement in total investment returns from regeneration property in the UK for 2010, with residential returns boasting a strong 11. 2% return. In fact, residential regeneration property has outperformed its commercial counterpart over both the medium and long term and emphasises the long term benefits of holding this asset class.
This is not reflected uniformly throughout the nation however, as the South saw capital value growth in residential property of 9% (predominately due to the core markets in London) versus a mere 2% in the north. Birmingham is currently one of the areas in the UK with over 20 areas classified as ‘disadvantaged’ and qualifying to receive stamp duty relief, and could possibly aid in reviving the markets in the Midlands and the North.
Another new residential development is underway in Birmingham and could increase construction recruitment throughout the city in the process. The properties are expected to be completed in September 2012 and those purchasing in Birmingham’s current, deflated property market could see excellent returns in the future.
A major regeneration project to the South of Birmingham is also in progress, as works have begun to demolish the city’s Stephenson Tower. The site is the chosen home for the 250, 000 square foot John Lewis department store, scheduled to open in 2014, prior to the redeveloped New Street station in 2015. Canny buyers may also see an opportunity here, and should consider Fast Conveyancing to accelerate their purchase before the market picks up and vendors become less desperate to sell.
More regeneration projects and partnerships between local councils and developers could help the region catch up with the South; however, investors are hesitant to move into these less established areas, and given the current recession-like conditions, perhaps they are wise to do so.
If you are about to instruct a Solicitor for your Conveyancing in Birmingham, whether for investment, buy-to-let or a new home, get a quote online, or call our Fridaysmove team on 0800 038 6446.