Economic prosperity boosts Yorkshire property market

Nearly half of business leaders in Yorkshire say the growth of the county’s economy is boosting the regional property market, according to a survey by specialist lender Together.

A total of 44 per cent of respondents say growth is having a “positive impact” on the property market, citing a rise in property prices in the commercial sector and an increase in residential and industrial new builds as evidence of continued prosperity.

Direct investment from major international companies such as McLaren, Boeing and Siemens, is also proving beneficial to business, and more than 70 per cent of respondents agreed that this is having a “significant” positive impact on the success of Yorkshire’s SMEs.

Nearly half (45.6 per cent) have already seen an increase in business because of a general regional economic boost, with more than a fifth (22.1 per cent) reporting having benefitted from increased property demand.

More than a third (39.5 per cent) of companies who took part in the survey are expecting business to grow by between six and 20 per cent in the next 12 months, despite the uncertainty surrounding Brexit.

Barry Dillon, regional development director at Together, which provides finance to businesses across Yorkshire, and the rest of the UK, said: “It’s clear from the results of our survey that there’s a great deal of confidence from businesses in Yorkshire, with a buoyant regional economy and inward investment having a noticeable knock-on effect on the regional residential, commercial and industrial property markets.”

Yorkshire has attracted major investment in recent years, particularly in the city regions of Leeds, Sheffield and Hull – this year’s UK Capital of Culture.

Luxury supercar manufacturer McLarens is building a “world-class” £50 million car chassis factory at the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC) which will also be home to Boeing’s first European commercial factory, and will be built with £20 million investment. The major investment from both companies will create hundreds of jobs.

Meanwhile, Siemens’ new £310m wind turbine blade factory has been hailed as the biggest investment in Hull since Victorian times, and there remains a strong demand for commercial space in Leeds, the country’s largest financial centre outside of London.

When it comes to finding business finance, the survey results suggest the majority of businesses have a positive experience. More than a fifth believe this is thanks to a variety of funding sources, whilst 17 per cent attribute it specifically to an increase in specialist lending.

However, one in ten business leaders say securing finance is still a barrier to growth, so there’s more work to be done to raise the profile of specialist lenders, like Together.

Barry Dillion explains: “The survey shows that, while many businesses in Yorkshire want to grow their operations and believe they will do so over the next year, some are finding it difficult to secure the funding they need. At Together, we provide finance to businesses and investors for a wide variety of purposes, taking a common sense approach and reviewing each case individually.”

Together, which has a loan book of over £2 billion, was named ‘Finance company of the year’ in the recent UK Northern Powerhouse awards, in light of the support it provides to businesses across the North by delivering funding for growth.

For further information, visit www.togethermoney.com