Residential growth attracting investors to the East Midlands

The East Midlands is currently receiving significant interest from investors tracking house price growth.

According to research by real estate advisors JLL, investors are flocking to the region – which is outperforming the UK average – thanks to its thriving private rented and student residential sectors.

Leicester in particular has enjoyed increased interest with a 5 per cent rise up to Q3.

Anabel Christmas, residential director at JLL, said: “While previously the region has been considered a secondary location, with many investors focusing on the Big 6 like Birmingham and Manchester, the increase in values has changed their appetite.

“This is combined with a reported increase in residential rents as new schemes coming forward offer increased supply and quality and the opportunity for a continued upward trend.”

A number of PRS schemes are being brought forward which reflect the new standard of accommodation driven by consumer demand.

Christmas added: “We’re seeing a cultural shift towards experience over possessions from the younger generations.

“Investment into this sector shows a shift towards the European style co-living trend, with a mixed age of tenants targeted including retirees, downsizers, young families, professionals and graduates who are being drawn to a backdrop of new leisure and lifestyle opportunities in the city centres.”

JLL says the private rented sector is also responding to a rise in the quality of the region’s student accommodation, and expects the upward trajectory to continue for the foreseeable future.