More prosperity across the UK could help the regional property market grow

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The spread of wealth across the UK and the movement of businesses to new areas could help improve property prospects nationwide.

The spread of wealth and business prosperity across the UK could mark a real boost for the residential property market in the regions in the months and years to come, after it was revealed that cities outside of London are starting to close the gap on the capital.

In recent times, cities such as Manchester have played a key role in the movement of businesses away from London, with the rise of the north-west's Media City in Salford having been a key driver of companies seeing Manchester as a viable option. And according to new findings from Barclays, this is something that is moving across the regions, with a real rise in entrepreneurs operating outside the capital.

Higher numbers of young business owners across the nation has helped to improve wealth in cities such as Manchester, Cardiff and Sheffield, while the average age of business owners across regional areas has dropped markedly in the past year.

It is the rise of business activity in the regions that could be very good news for the property sector away from London. Growth in the number of companies starting up in places like the north-west and the Midlands will mean an increase in the available jobs in these areas.

And when young professionals move to any area where jobs are starting to become available, as we've seen in Manchester in recent years, there is a real swell in demand for rental properties, which can only be good news for investors.

In this regard, Manchester continues to be the most promising performer nationwide. At present, Barclays said, it has the best turnover rate of small and medium enterprises (SMEs) to be found anywhere in the UK at 15 per cent (compared to London's seven per cent), while it also has the lowest average business owner age at present in the whole country, coming in at just 45 years old.

The prosperity report from Barclays shows that London remains the wealthiest city in the UK, unsurprisingly, but the index, based on number of millionaires, earnings and property prices, show that other areas are catching up.

London's wealth grew by 12 per cent in the last year, Barclays said, but for the first time, it was not the fastest rising area of the UK. Scotland takes that crown in 2016, with a 13 per cent rise in wealth across the course of the past 12 months.

Akshaya Bhargava, head of Barclays' wealth division, said: "It is very encouraging to see the upward trajectory for prosperity in the UK continuing despite recent global volatility - both in terms of hard economic measures, as well as more behavioural aspects of prosperity, such as exam results or philanthropic giving".

"It is particularly reassuring to see that there is strong activity throughout the whole of the UK," she added.

This article has been provided by Experience Invest.

 

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