Sheffield set to be property jewel of the North

DEMAND for high quality city living looks set to drive residential developments in Sheffield, with a growing young population crying out for top notch accommodation.

Despite nationwide fears of a credit crunch, property specialists Knight Frank say that Sheffield looks set to counteract a housing slump by dominating the residential market as other major cities in the UK take the brunt of the backlash.

It said that Sheffield's relative shortfall in supply of city living units compared to other key centres together with the city's high population of 20 to 34-year-olds , which is double the UK national average, and excellent transport links was driving demand.

The city's positive stance is highlighted in Knight Frank's latest Northern residential development review, which also demonstrates how Sheffield city region's cohesive policy making is a defining factor in future property development.

Tearle Phelan, head of residential development at Knight Frank, said:

“City Lofts' St Pauls in the 'Heart of the City' development has not only provided Sheffield with its first iconic scheme but it has demonstrated the strength of demand for a premium product within Sheffield's city living market.

“A two bedroom apartment here starts at £225,000-£400,000. In contrast, a two bedroom apartment of standard specification in the city is selling for £165,000-£185,000.

“Regeneration is taking place on a large scale in Sheffield. The 'Heart of the City' programme will provide 301,000sq ft of commercial space, 316 residential units and a £200m new public realm. This will be complemented by the new retail quarter which will add 882,000 sq ft of new shopping facilities and approximately 400 apartments.”

Knight Frank is currently acting as agent for many of Sheffield's influential city living projects, including the S3 Boulevard scheme, the regenerated Butcher Works and is advising on residential and commercial elements of Hammerson's new retail quarter and the redevelopment of The Moor.

The property specialist is predicting that the new homes market across the main Northern cities will see static growth in 2008 while family housing and iconic build will perform more strongly, achieving 4 to 5% annual price growth.

Its report also indicates that single households are anticipated to be a major driver in the future, with the all important 20 to 34-year-old age bracket set to rise by a further 29% over the next 20 years and 40% of all developments being aimed at the city's growing student population.