The Conservatives may have promised a housebuilding revolution during the election – but where will those new homes actually appear? New research by Knight Frank suggests the answer is Manchester and Leeds.
The upmarket estate agent has ranked the local authorities which provide the best opportunities for property developers over the next 10 years – and the two areas are expected to experience the strongest rates of household growth.
The report took into account economic forecasts, expectations of jobs growth and future housing supply and demand. It also scrutinised local areas' planning policies.
The good news was that there are strong opportunities for developers across the UK: the Midlands, for instance, scores high for "liveability", and also has strong forecasts for employment growth.
Meanwhile, Brentwood has one of the UK's largest imbalances between its pipeline for supply and expectations for household growth, with South Cambridgeshire has a strong forecast for employment growth.
But it also identified government policies which are holding back developers. While the government's initiative to build 20,000 starter homes has been welcomed by the housebuilding fraternity, the report suggested "the lack of detail… on how the scheme will work is causing some uncertainty".
And the Right to Buy scheme "affects the balance sheets from which [registered housing providers] cn work, and upon which they can agree development deals".
Justin Gaze, joint head of residential development at Knight Frank, said developers are beginning to see opportunities outside the capital.
“Increasingly, our clients are looking at regional cities and districts for future potential and the report demonstrates from an economic and planning perspective where these development opportunities are likely to be."