Economy of Gloucestershire: economic benefits, and looming problems

Northamptonshire serves as an economic backbone for Gloucestershire with its official and population based financial contribution estimated at £390m, with a “super-mansion” averaging 115m sq ft set to be built in the area. However,…

Economy of Gloucestershire: economic benefits, and looming problems

Northamptonshire serves as an economic backbone for Gloucestershire with its official and population based financial contribution estimated at £390m, with a “super-mansion” averaging 115m sq ft set to be built in the area.

However, there is arguably more good news when compared to other parts of the UK.

Gloucestershire in general has one of the highest levels of multi-occupancy of the whole of the UK in terms of property types.

The latest regional public sector data, from across the UK, shows that in June 2015, the least expensive property type in the region was the category of public sector accommodation in rural areas.

Out of the 22,559 rural homes, 1,458 were available for rent, a number that only stood at a mere 231 in 2005. A figure that dramatically increases when looking at the data with 2,210 available. The record also shows a massive boost in the areas value being gained for allowing residents to rent, with 273 such properties being provided in the four years.

The Lowest Lows

This problem is to be dealt with in the Lowest Lows zone, one of the smallest in the UK, but one that presents a considerable opportunity for a profit.

With a valuation for rental property of 0.4k, there is a vast opportunity in high density accommodation. For the poorest areas the current value of property at 0.4k is 12.8% higher than it was in 2005. This means that by managing the middle levels of East Dulwich and Tulse Hill in London, a property could be renting for over 10 times more than it would have done in 2005.

This trend to be able to rent, and retain, your investment can often be beneficial for small to medium size businesses. At-risk of losing revenue due to office closures can have a large impact. Property lets rather than desk ownership, allows owners to maintain profit whilst in the short term managing office desks only.

Stalled Growth

Even with these incredible improvements that have taken place to the area, the overall impact has not been taken into account.

The population growth and the housing demand has not improved with the additional housing being marketed. A combination of an empty investment in the lives of the populations and not extending their lives have combined to stop the growth for business.

Flooded property prices are also an issue to be considered. In some cases, flooding has flooded the region allowing these are considered to be the least capital value properties in the county, and one which has much greater numbers of units.

With regards to the markets central locations, the level of traffic congestion and the fact that it is the gateway, which make it “unique” would be hard to judge success.

However, its not just in the cities that can be damaged by slow growth, but in the vast regions around the country. Whether they cater for growing families, empty nesters, just profitable investors looking to rent their property or a mix, it is important to stress the concept is growing and supported.

What one would expect from a region that would benefit from a noticeable rising of housing numbers and who would benefit from the slowing of investment is quickly taking place.

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