The city of Wolverhampton is seeing impressive economic growth which is one of the many factors boosting the population and supporting increased demand for rental property. Combined with strong rental yields and lower property prices than many comparable investment locations – there are many reasons to invest in Wolverhampton.
Wolverhampton is currently undergoing significant regeneration. Amongst the many plans for improvements, the local government are ready to start work on a £55 million plan which will change the face of the city centre. The economy is also set to see a boost with projects such as expansion plans at the i54 business park which is expected to generate around 1,700 new jobs.
Giving the city a head start on many other investment locations is Wolverhampton’s position – overall the West Midlands is very well positioned to connect to the rest of the UK. Investors seeking a true opportunity in an up and coming area that has actual plans in motion, not just the promise of change would be wise to focus their attention on Wolverhampton.
Growing Economy
According to council figures Wolverhampton has one of the UK’s fastest growing economies and is ranked as one of Europe’s top cities in terms of job creation in manufacturing. This organic economy growth is exactly the type of indicator needed for investor interest to increase – in Wolverhampton economy growth is also being supported and looks to increase significantly in the years to come due to the planned regeneration works.
Many investors, both public and private, have already begun financially supporting the city’s regeneration plans – there is recorded to now be around £4.4 billion committed to the new development plans and improvements to infrastructure.
Major Investment Projects
6km north of Wolverhampton, the i54 business park home to some of the UK’s biggest advanced manufacturing employers. Sustaining nearly 3,000 jobs, the park has its own dedicated motorway exit. It’s already one of the regions biggest enterprise centres and has made headlines due to Jaguar Land Rover’s plans to invest around £1 billion in a new engine manufacturing plant on the site. Due to its success i54 is expanding with the works already in progress to create the western extension, which is expected to generate around 1,700 new jobs.
Expected to be completed by summer 2020, perhaps one of the most important improvements to local infrastructure is the Wolverhampton Interchange. Bringing rail, bus and metro into one hub will allow commuters to make seamless transfers and also presents an opportunity for retail and leisure.
The local council are currently ironing out the finer details with which leisure facility providers prior to moving forward on plans for large scale regeneration at Wolverhampton Westside. When the project moves forward it will generate many leisure opportunities improving local amenities significantly.
The University of Wolverhampton is currently undergoing change with the addition of a new School of Architecture, works due to be completed on the Springfield Campus in summer 2020. The Springfield Campus is an International Centre for Urban Innovation and will be the site of the university’s new School of Architecture which will attract a significant number of new students.
In other areas the university is also seeing change, in particular within the Science Park which is now home to 90 businesses working in a range of disciplines. The new Science in Industry Research Centre has been created to help businesses develop new science-based products and processes, and to refine existing methods.
Other projects of note include Brewers Yard, Canalside Quarter, Molineux Quarter and the Commercial District. Undergoing works these developments are set to be completed within the coming years further supporting Wolverhampton’s prospects for capital growth and increasing rental yields.
Wolverhampton Property Prices
With so much change in motion and regeneration planned for the future it is unsurprising that Wolverhampton property prices have seen positive impact and offer excellent potential for future capital growth. There is overarching support from price growth and popularity of the West Midlands as a whole.
Some areas have seen staggering price growth with certain postcode areas reporting as much as 20% price growth year on year. Of course this is not guaranteed across all of the city but these exciting figures are encouraging and demonstrate the potential to be found.
Wolverhampton is an exciting prospect for investors and might especially appeal to those seeking property at a lower price point as average prices remain to be lower than many other investment locations.
Rental Yields in Wolverhampton
Whilst rental yields vary across the city, average yields are recorded to be higher than the West Midlands regional average of around 5%, with landlords reporting 6-7% yields in certain areas.
Demand for rental property is only set to increase with the Office for National Statistics predicting that Wolverhampton’s population will grow by 12.5% by 2033 – an additional 32,000 residents. It’s in fact likely that the true population growth will be greater than this as when this prediction was made some of the city’s most significant regeneration projects were not yet planned for or in progress.
An increasing population doesn’t always guarantee increased demand for rental property – Wolverhampton is reported to have an unusually young and well-qualified population. The local economic strategy focusses on high value knowledge-based industries, and this is where the majority of the city’s economic growth is expected to originate.
Wolverhampton Property Investment
Where property prices in many areas of the UK grew significantly in recent years Wolverhampton’s price growth remained lower, until recently – there is a potential for excellent rental yields and property prices have extra room to grow when compared to similar investment options.
Wolverhampton has a fast growing economy, supporting a growing population and strong rental demand, the investment costs are lower and there is a good record of capital growth and high rental yields. Wolverhampton has an exciting future ahead and presents opportunity to the savvy investor. To discuss your plans for property investment please do get in touch; our professional investment advisors are available on 0203 950 7939.
