At Bishops Gate Developments we believe it’s important to use all available data and insights when selecting a site for development. The reasons for this are many but the primary driver for us is security and risk mitigation… we want to ensure that a site can be exited in more than one way and therefore protects the input of any stakeholders in a development.
For example in the event a development struggled to sell, we want to know it could it be refinanced to return any Investor funding and then worst case rented at a minimum of break even until liquidity returned to the market or where it delivers a return.
One way we do this is to take notice of property-related data, expert forecasts in addition to location economies, local employment, and infrastructure spending etc.
Leaving aside the convenient fact that our team all live in the East of England we are encouraged by Savills 5-year mainstream capital values forecast which predicts the region will demonstrate the strongest growth in the UK, outperforming London, the South East and the North West.
This is further supported by more localised economic factors from the regions City’s, none more so than Peterborough where amongst other things house building has outpaced that of much of the rest of the Country (now one of the UK’s fastest growing City’s), driven in large part by the influx of large technology, finance and engineering companies choosing to relocate to the area.
Which when combined with the City’s high employment levels, younger than average population and excellent transport links to London (45mins), Leeds, Newcastle, Cambridge, and Birmingham make both the sales and rental markets strong.
A recent McKinsey report suggested “Peterborough’s economy is anticipated to grow by 40% from £6.2bn GDP to £8.7bn GDP in 2025. it will be England’s fastest growing city.”