As per all parts of the country, Southampton has an ever evolving property market. Over the last few years capital growth has been strong in Southampton whilst the city has also featured in many of the national newspapers as a place with great yields to invest in.
Employment and regeneration
Southampton’s council has actively encouraged development of large commercial buildings and centres to help stimulate and grow capacity for those calling the city home. Recent city centre projects in the Cultural Quarter, Port and Gun Wharf have all helped with employment – creating
jobs for young professionals in Southampton.
On the fringe and edges many large new industrial ‘sheds’ are being constructed creating opportunities for bread winners and families. Southampton Council, as per Government planning strategy, are permitting developers to build large new estates for families too.
All pointing towards an active city with a healthy demand for homes.
Southampton planning permission and property challenges
Like many towns and cities throughout the UK, Southampton Council presents opportunities and challenges. With regeneration comes opportunity, the council are actively looking to improve parts of the city by encouraging communities and using planning to move people.
Large new blocks of student accommodation have been built whilst article 4 planning (to prevent permitted development / change to an HMO) put in place across most of the luxury centre. This had affected a lot of student landlords who now have poor quality houses that do not match the competition, they simply struggle to find good tenants who are happy with a cheap rent – resulting in under performing stock.
ZebraInvest see under performing properties as opportunities. Simple changes (such as letting to professionals rather than students), quality renovations, including cleaners and space optimisation all result in maximising returns with minimal, if any, voids.
Families and first time buyers
With generation rent focused on enjoying themselves (such as regularly spending on holidays, coffee and small luxuries), rather than saving to buy a house, most are renting for longer and typically having children before owning their own home. Young families and first time buyers typically buy as much house as they can, in the best walk in standard as they can with the smallest possible deposit.
In Southampton most young families look for good quality modern three bedroom houses and preferring those that are built well – rather than new builds with thin walls.
ZebraInvest therefore find and source houses that would benefit from refurbishment in areas with good schools to turn them in to family homes