The financial crisis has been characterised by large scale interest in property in the nation’s capital – particularly from overseas investors – while the regions suffered credit drought as lending organisations shied away from property outside London.
But with schemes like Manchester Airport City, one of the UK’s largest development projects, and even Battersea Power Station finally getting off the ground, there is a growing sense of optimism.
Chris Grigg, Chief Executive of British Land and President of the British Property Federation, said: “A week may not seem a long time in property, but in this market, a few months certainly does. We have seen a real thawing in market conditions of late, and not just in London. The UK economy has done better than the pessimists predicted, and there is undoubtedly more bank finance out there now. Meanwhile, domestic and international buyers have started to run the slide rule over more real estate outside as well as inside the capital.
“On the other hand, we are by no means out of the woods yet. UK economic growth remains low and unemployment painfully high. The challenge to our industry is startling: we must provide relevant space for occupiers whose needs are often changing, and do it at a time when capital markets are still patchy. Government faces a similar challenge: to provide world class infrastructure on a tight budget.”
Karen Campbell, Airport City Director, Manchester Airports Group, said: “Our promising £650m project sits at the heart of Manchester’s Enterprise Zone and is set to create 11,400 jobs over the next 10 to 15 years. It will be the largest development scheme in the UK since the Olympics. It will provide a huge boost for local employment, the region’s construction industry and local supply chains.”
Robert Tincknell, Chief Executive Officer, Battersea Power Station Development Company Limited, said: “London is a global city and it attracts buyers from all over the world. This has long been the case, but over recent years we’ve seen increasing demand from Asia, Russia and elsewhere in Europe. Without doubt investors are persuaded of the economic case for investing in London, but when it comes to selecting where to buy they are drawn to projects which have a clearly defined identity and are really woven into the fabric of a wider community. “