Government-led Northern Powerhouse and Midlands Engine initiatives boosting confidence in regional markets
The best new development opportunities for commercial investments are expected to be in the North of England and the Midlands, specialist lender Together has revealed.
According to their research, 39% of commercial landlords polled said that the East Midlands would be the best region in the UK for new investment over the next two years.
This was closely followed by both the North East and North West, which was identified by 37% of survey respondents as the UK’s top regions for developments.
In addition, the poll found that more than two out of five commercial investors planned to increase their investment in the Midlands in the coming two years, with 40% saying they will expand their presence in the North.
Government-backed schemes aimed at boosting regional economies have been a key part of commercial landlord confidence in these areas.
In particular, 47% felt that the Northern Powerhouse initiative had a positive impact, with 40% also finding their confidence boosted by the Midlands Engine project.
Landlords also indicated that the best performing assets over the next two years in these regions would be office developments, with commercial investors in the North slightly more confident in the office market (49%) than those in the Midlands (44%).
Andrew Charnley, Together’s Head of Corporate Relationships, said: “The North of England and the Midlands are attracting interest from commercial landlords who can see real opportunities to expand over the next two years.
“The Northern Powerhouse and Midlands Engine initiative are playing a part in helping to boost both areas, but landlords are very focused on where they see the opportunities with differences in which sectors are seen as offering the best chances for developments.”
Last month, the Government announced a new £95 million fund aimed at revitalising England’s ailing high streets to help them adapt to changes in consumer spending habits.