Rishi Sunak grilled by Robert Peston on ‘levelling up’

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Some 96 areas earmarked for regeneration projects could be boosted by a rise in average house prices of more than £8,000. Typical values have risen by more than £100,000 to £341,019 over the past 10 years. But while areas such as Margate in Kent have rocketed by 102 percent, Middlesbrough has had a paltry six percent increase.

Levelling Up Secretary Michael Gove promised that the Government would deliver “Kings Cross-style transformational regeneration projects across the country” in order to “spread opportunity more evenly”.

However, there was also a warning that the surge could result in more first-time buyers being priced out of the housing market.

Experts at StripeHomes analysed the current value of bricks and mortar in each of the 96 areas, the potential increase due to wider regeneration and what this means in the context of the existing market.

They estimate that this total benefit could be as high as £58.7billion.

StripeHomes boss James Forrester said: “Any level of regeneration will always have a positive impact on the surrounding property market and, on average, house prices tend to climb by around 3.6 percent. While this may sound like a modest rise for homeowners, it’s a pretty staggering boost to the market when you consider the overall impact.

“It’s safe to say that the areas that are due to benefit should see a healthy uplift in property market values.”

Yorkshire and the Humber is set to enjoy the biggest uplift. Eight areas in the region have been earmarked for levelling up and StripeHomes estimates that this could add over £9billion in property value.

The East Midlands could get a boost of almost £8.5billion, followed by Scotland with £6.8billion, the North West £6.6billion and the West Midlands £6.5billion.

Derbyshire could benefit from an average boost of £7,709 to the 438,882 properties falling under Whitehall proposals, an increase of almost £3.4billion.

Birmingham and Gloucester-shire are set to enjoy uplifts of £3.3billion, while Edinburgh and Leeds could get boosts of £2.8billion. 

However, estate agents Rightmove reported that house prices in England and Wales are now almost 7.7 times higher than incomes, with affordability significantly worsening in the last two decades.

The Government wants to increase the number of first-time buyers in its levelling-up agenda. 

But Tim Bannister, at Rightmove, said: “Plans to achieve this need to consider all areas of Great Britain, especially places where the rising cost of rent means many are struggling to save enough for a deposit.”

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Comment by Stephen Corbett

Plans to level up the North are set to bring substantial benefit to homeowners in those areas that have been earmarked.

Providing the Government follows through on its promises it should help close the North-South property divide.

Any level of regeneration not only improves the quality of life in a given area but it attracts people to live and work there.

This has a direct knock-on effect to the local housing market. It causes demand for rental and sales properties to climb, boosting market values in the process.

We’ve already seen how extensive regeneration has benefited cities such as Manchester and Newcastle, and it’s fair to say that the property market in these cities is now thriving.

It’s an exciting time to invest in the North and we expect this upward growth to continue as the Government’s plans to level up take shape.

• Stephen Corbett is the StripeHomes commercial director

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