Analysis by peer to peer real estate investment platform, easyMoney, reveals that Levelling Up projects could add as much as £18,000 to local house prices in those areas of the nation identified in the Chancellor’s recent Spring Budget.
In the Spring Budget, Chancellor of the Exchequer, Jeremy Hunt, took the opportunity to relaunch and reload the government’s Levelling Up efforts which it hopes will see opportunity and prosperity spread more evenly across all of England.
easyMoney has analysed local property prices in these areas to project what impact Levelling Up could be expected to have on the housing market.
The locations which are to receive government attention over the coming years have been placed into one of three categories – Levelling Up Partnerships, Levelling Up Regeneration Projects, and Levelling Up Capital Projects.
20 “in-need” areas have been identified for Levelling Up Partnerships and will receive a share of over £400 million to “bring the collective power of government” to provide bespoke, place-based regeneration.
Levelling Up Regeneration Projects will see a further 16 projects get underway across England, backed by £211 million.
Finally, Levelling Up Capital Projects will see £58 million invested in three projects in the North West of England to create, for example, a new community hub in Stockport and much-needed transport connectivity improvements in Rossendale.
According to CBRE, regeneration can boost local house prices by an average of 3.6%. But what does this translate to when applied to the local housing markets due to benefit from the latest round of Levelling Up?
The London Borough of Waltham Forest is set to benefit from the Levelling Up Regeneration Projects and could see the most significant boost to house prices as a result, with easyMoney estimating the local market could see an increase of £18,450.
Both Rother and Torridge are set to benefit from the share of £400m delivered via Levelling Up Partnerships and could both see a boost to the local housing market to the tune of £13,780 and £11,959 respectively.
Like Waltham Forest, East Suffolk is set to benefit from Levelling Up Regeneration Projects which could cultivate a £11,595 increase in property prices.
Homeowners in Stockport (+£11,020) and Hastings (+£10,773) could also be set to enjoy a five figure uplift in the value of their homes, while those in Tendring could not only enjoy a £10,454 boost as a result of Levelling Up Partnerships, but the area is also earmarked to benefit from Levelling Up Regeneration Projects.
Torbay (+£9,651) and Telford and Wrekin (+£8,186) complete the top 10 areas due to see the biggest house price benefit as a result of Levelling Up regeneration.
Jason Ferrando, CEO of easyMoney says: “Levelling Up is an extremely earnest attempt from the UK government to address the severe imbalance of wealth distribution across England. It identifies local areas that have long been neglected and provides them with an injection of cash and development to create more opportunity for employment and prosperity.
Of course, more employment opportunities and a boost to the economy and infrastructure is also likely to have a positive knock-on effect within these local housing markets.
This is great news for homeowners and property investors alike and should also help to level the playing field in what is currently an imbalanced property market.”