The learning objectives for this article are to:
- Identify which regions of the UK may benefit from homebuyers who favour living near cities and towns.
- Understand why certain regions are emerging as hotspots for buyers and, potentially, property investors.
- Analyse the reasons behind the shift in demand in living closer to cities, as opposed to moving away from them.
Property investors should take another look at our commuter belts. The return to the office trend isn’t going away. In fact, it’s gathering pace.
Some 41% of businesses have required their staff to spend more time working on site over the past year, according to the British Chambers of Commerce. Also, nearly half (48%) of surveyed businesses expect all working days for staff to be on site during the next 12 months or so.
It’s clear to see the direction of travel here. Crucially, homebuyers and homeowners already appear to be ahead of the curve.
For Market Financial Solutions’ independent Q3, research, we surveyed 2,000 representative UK adults – 573 of home had bought a property in the UK in the prior year, or were in the process of doing so.
Of those who had bought a property, or were in the process of doing so, we then asked questions on their preferences, and outlook. The results revealed a clear shift in priorities among workers.
A massive leap in importance
Specifically, “distance to the nearest city or town” jumped the most places in the ranking of importance when compared to the same survey from 2024. It rose 6 spots from 10th to 4th within the space of a year. Across all age groups, 74% said this factor was very, or somewhat important.
The reasoning behind this may vary but with so many employers demanding their staff return to the office, it’s likely that many buyers have been forced to look at moving closer to their local cities out of necessity.
Interestingly, a few regional hotspots have emerged. The kind of regional hotspots that could be worth targeting by property investors looking to take advantage of emerging work-related trends.
Across England and Wales, it was the North East that had the highest proportion of homebuyers who valued distance to the nearest city or town the most, at 86%. This was followed by Wales (83%), and London (81%).
Given what we’re seeing in these areas, it’s understandable that buyers want to be closer to local cities and economic hubs.
Major infrastructure and commercial developments
There are some major investment and infrastructure projects happening in these regions which could easily be targeted by property investors. As these projects grow, it could lead to more jobs, more inflows, and a greater need for housing and/or commercial properties.
Take the North East. In May this year, Kim McGuinness, Mayor of North East England, unveiled £14bn worth of investment opportunities with the launch of the first North East Investment Prospectus. This prospectus broke down a range of investment opportunities for developers and the like, spread across various industries such as energy, manufacturing, life sciences and more.
Furthermore, other projects and endeavours such as the North East Investment Zone, Blackstone’s “hyperscale” data centre, and the extension of the Tyne and Wear Metro are all set to boost the region’s credentials and potential.
Wales too has plenty on the horizon. As part of the Government’s modern Industrial Strategy announced in June, Wales will be supported with billions in investment and the creation of new jobs. The state’s aim is to forge a new relationship between business and government, making Wales one of the best places in the UK to start and scale up a business. Moreover, the launch of a Defence Industrial Strategy will benefit Welsh defence based companies, and floating offshore wind leases have been granted to Equinor and Gwynt Glas, which is set to be “transformative” for the country.
Then there’s London. The capital will likely always have countless infrastructure and economic expansion efforts in the works. Too many to list here. But, given that the number of people moving out of London has fallen to the lowest level in over a decade, the direction of travel is clear. This indicates that many people feel there’s more potential in being near the city, rather than escaping it.
Indeed, this trend is recognisable across the generations too. A recent survey from Bupa found that 45% of Gen Z respondents said they were considering looking for jobs with more social interaction. Young people appear to be tiring of working from home. At the other end of the scale, there is also growing evidence that retirees are shunning quiet villages for the fun and excitement of major cities.
We all need to be ready
The economy shifts as resources are allocated to specific regions. It’s inevitable that this will be followed by an influx of workers and families who will all need places to live, eat, and play. It’s a simple, yet useful saying: if you build it, they will come.
Property investors who recognise this could do very well. The coming months and years could lead to economic and commercial rebounds in various areas across the UK. The window to take advantage of this may be small, and so specialist lenders need to be ready to offer their support in a timely, flexible manner. Fortunately, the evidence suggests they’ll be up to the task.
To recap, this article has helped you...
- Identify which regions of the UK may benefit from homebuyers who favour living near cities and towns.
- Understand why certain regions are emerging as hotspots for buyers and, potentially, property investors.
- Analyse the reasons behind the shift in demand in living closer to cities, as opposed to moving away from them.
