With Bristol near the top of the charts
BRISTOL has become the most popular city for property investors in England outside of London, according to new figures.
The strength of the property market and close transport links to the capital mean that the city has become something of a magnet for investors.
Research amongst British property investors by law firm Morton Fraser found the Bristol area has emerged as a key location.
Bristol came second to Edinburgh overall in UK cities outside of London, and was followed by Manchester as the most attractive destinations for investors.
Aberdeen is rated the least attractive location for property investors. This comes after its energy-dependent economy was hit by falling oil prices, leading to thousands of job losses as the oil and gas industry contracts.
David Stewart, commercial real estate partner at Morton Fraser, said: “Bristol has demonstrated real economic resilience since the recession.
“It has benefitted from “nearshoring” as London-based companies look to take control of spiralling property costs, and investment to electrify the railway line will cut travel time to the centre of London to less than 80 minutes.
“Its success in protecting inward investment, attracting business and talent, and developing infrastructure means property investors can more easily envisage long-term gains.”
He added: “Regional commercial property investment has a lower upfront capital cost but can often return higher yields and longer tenant leases, improving income security.
“However, those benefits are outweighed by perceived economic risks in most regional cities by potential investors.”
According to Morton Fraser, Leeds, Cardiff and Glasgow will all expect to move into a positive investment score in the coming year after at least 30 per cent of investors felt they were attractive locations.
They have also negotiated city region deals with the UK Government collectively worth at least £3 billion.
Mr Stewart said: “City region devolution will play a key role in ensuring investors see regional locations as positive income-generating opportunities.
“That said, experience shows that a good property investment can withstand economic fluctuations and the right opportunities can be found in all these locations.”