How young populations will drive investment hotspots in 2019

How young populations will drive investment hotspots in 2019

Recent research by specialist property investment company Surrenden Invest reveals how the growth in young populations will be a key driver for property investment throughout 2019. Using data produced by the Office of National Statistics and Zoopla, Surrenden Invest have delved further into the figures. Here are some of the key findings from their research, highlighting where the investment hotspots are likely to be:

  • Birmingham has seen property prices rise by 29.46% over the last five years. With the city’s population forecast to grow by 14.5% by 2041, Birmingham is well placed to attract entrepreneurs and new business.
  • Manchester’s population is set to increase by 14.1% by 2041. House prices are up by 30% since 2013 and with impressive graduate retention and its ability to attract young professionals, Manchester is proving to be a magnet for young talent.
  • Liverpool’s population is forecast to increase by 12% between now and 2041. Approximately 42% of Liverpool’s population are under 30 compared with the UK average of 37%. The city’s thriving service sector and knowledge economy is a huge draw for young professionals and this is set to continue.
  • Newcastle is also a hotbed for young talent. With student numbers in the city rising by 70% since 2000, Newcastle benefits from high graduate retention rates with many choosing to stay and work in the city once finishing their studies.

Of course, London can’t be ignored when it comes to growing young populations. Over the next 25 years, the population of the capital is set to increase by 15.4%. Property prices in London have risen by over 32% in the last five years and with 60% of Londoners expected to be renting their homes by 2025, it is the capital’s young professionals that are driving this trend,

Commenting on the findings, Jonathan Stephens, MD at Surrenden Invest, said: “Looking ahead to likely investment hotspots is a case of examining the underlying market fundamentals. For 2019, that means cities with youthful populations and strong trends for city centre living. The UK’s rental sector is still growing so 2019’s hotspots will be those areas in which populations are expanding rapidly, and where employment prospects are sound.”