Is Job Creation a Driver of U.K House Price Growth?
A discussion regarding the recent house price growth and the impact of job creation on house prices.
LONDON - July 28, 2014 - PRLog -- June 2014 House Price Figures from Halifax Building Society indicated a monthly fall of 0.6%. Although, the annual price increase on their indices was tracked at £16,000 with average house prices up from £167,668 to £183,462
The monthly decline could possibly be attributed to the drop in sentiment resulting from cautionary statements released by the Bank of England Governor, Mark Carney, which suggested that a rate rise might be on the horizon.
“The Mortgage Market Review is likely to be having an impact here: either homeowners are struggling to remortgage under the new rules or worry that they will, and so are not bothering even trying," said Mark Harris of mortgage broker SPF Private Clients.
The Office of National Statistics, June 2014 figures showed that 780,000 more people are in work than a year earlier. Normally there is a link between employment figures and growth. House prices tend to increase in times that employment levels are increasing.
There have been complaints, by the Labour Party, about the two-speed Britain. It has been said that not enough is being done to stimulate economic growth and job creation outside of London.
Job Creation in Yorkshire
Leeds and Partners are an organisation responsible for attracting inward investment and developing the visitor economy to drive jobs and economic growth in the Leeds region.
They have strategically selected the following high growth sectors which they aim to focus on; Health Innovation, Professional and Financial Services, Digital Information as well as precision engineering.
There has already been a good measure of successful implementation of Leeds and Partners programs.
Sanef, the French motorway operator has constructed a new 28,000 sq ft customer support centre at St John's Centre in Leeds that has created 300 new jobs and has committed to an ongoing apprenticeship scheme.
The Liberal Democrats release of the 7Th July 2014 confirmed that; “The Leeds City Region Local Enterprise Partnership today agreed an historic Growth Deal with the Government which will see £572.8million invested in Leeds City Region”.
“£72.8million has been confirmed in the first year, and as part of the Government's on-going commitment to the Leeds City Region LEP it has provided an indicative award of a further £500million of funding from 2016/17 onwards. The deal will help to create up to 9,000 jobs”.
Leeds City Region has experienced more retail investment than any other location in Western Europe*. And according to figures provided by Hammerson, the developer of the £150 million Victoria Gate project, Leeds shoppers are also performing above the national average.
More Jobs means Increased Rental Demand
Renowned Leeds estate agency Morgan’s said “City centre and North Leeds rentals are up by 10% in comparison to the same period last year, and sales have seen a staggering recovery – up 100% on last year”.
‘It appears that it is a good time to invest in Leeds buy-to-let property and not just the city centre” says One Touch Property Investment Director, Arran Kerkvliet. “We currently have two bed apartments yielding eight percent (8%) net income in LS14 and are perfectly positioned for capital uplift because they within the regeneration zone”.
Aire Valley Leeds enterprise zone is an unprecedented opportunity for business relocation and expansion, situated to the east of Leeds City Centre. Covering 142 hectares of prime development land, it is been set up with government backing to drive investment, growth and job creation. Fully developed, the Leeds enterprise zone is poised to deliver up to 7,000 new jobs.
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