Jan Crosby, head of housing at KPMG, comments on how today’s Budget announcement on increased infrastructure spending in the North of England could affect the property market:
“Today’s announcement that hundreds of millions are due to be pumped into infrastructure in the North of England will be welcome news to international property investors, for whom committed connectivity across the region and with the wider UK is a significant tick on their wish list.
“While property investors from the likes of Asia and the Middle East have been interested in the Government’s narrative around the Northern Powerhouse, they have been waiting for the words to be backed with action and financial commitment to improve the region’s infrastructure before making large scale investments.
“The issue for these investors has been end user demand for property across the North – the scale of appetite simply isn’t as high for housing or for commercial property as they are used to in London or the South, because the ecosystem of infrastructure hasn’t been there to create an environment which attracts the end user in significant numbers. However, with HS3, improved road links and a trans-Pennine tunnel all garnering the Chancellor’s support, occupier demand for homes and business in the surrounding areas will rise, which we can expect to attract international property investors looking to place their money outside of the capital’s heated market.”
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KPMG Press office
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Frances Shennan, KPMG Corporate Communications
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