The Potteries is experiencing a revival. But what exactly is it about the land of ceramics and oatcakes that makes it so appealing to property investors?
Let’s take a look at why Investing in Stoke-on-Trent is a good idea…
1. Stoke-on-Trent is the number one buy-to-let hotspot
It’s not very often that you’ll find Stoke at the top of any leagues. You’ll forgive us, then, for shouting about a league that we have actually prospered in – property investment.
Research from the investment marketplace, Property Partner, found that Stoke-on-Trent is number one when it comes to annual rental yield from buy-to-let properties.
The research took into account house prices, local salaries and rental returns. And the results were conclusive in favour of The Potteries.
Rental yields of almost 6% are possible.
Moreover, the North in general has a real upper hand versus the South.
The 10 best locations can all be found in the North and, conversely, the worst are all in the South. More evidence, if needed, that the North-South divide very much exists.
But this time it has nothing to do with culture, politics, or standards of living. And this time it’s the North who have come out on top.
Here are the figures:
2. Stoke is one of the top fifteen places in the UK to start a business
The Potteries boasts 13th place in the table of best places to start a business in the UK in a 2021 survey by fasthosts
Stoke-on-Trent outperforms the likes of Manchester and Leeds to maintain its place among the startup elite.
Fasthosts bases its findings on several key factors. These include business launch and closure rate; five-year business survival rate; the cost of office space ft2; and productivity rate.
Location is also a major component in Stoke’s popularity. Being situated in the heart of the country has significant advantages. Accessibility and great transport links are huge plus points. Major cities like Birmingham, Manchester and Liverpool are only an hour or so away.
Indeed, Stoke’s very desirable geographic location has deemed it the ‘home of the billion pound start-up.’ Bet 365 and JCB are examples of major success stories that have blossomed in our humble surroundings.
Furthermore, there is an abundance of help available for SMEs in Stoke-on-Trent.
Other major considerations
Lower salaries are a big factor.
Statistics from Make it Stoke-on-Trent and Staffordshire suggest that wages for distribution staff, warehouse operatives, and skilled workers in Stoke-on-Trent are 15% lower than Birmingham and 17% lower than Manchester.
Then there’s workspace.
Average Grade A Office space costs 57% less than Manchester and 55% less than Birmingham. And the average cost of an industrial unit is 17% less in Stoke than it is in Birmingham or Manchester.
Great news if you’re starting a business.
3. We have two thriving universities
Staffordshire University
Keele University
Keele and Staffordshire are both major universities in terms of size and popularity.
The 2022 University League Tables from the Complete University Guide rank both of our higher education establishments in the top 100. More importantly, both have highly respectable scores in terms of student satisfaction. Ranking higher than some universities in the top five.
OK, but what does this mean for property investors?
Well, consider this:
And it just so happens that, here at HYPE, we know where those areas are.
In fact, we help dozens of property investors successfully let their student houses in those areas.
More than that, we help to refurbish those properties. And transform them into places that Keele and Staffs students are proud to call home.
Take a look at these two examples:
This stylish HMO was recently refurbished in Stoke’s University Quarter. And was let before it was even complete.
And this all-en-suite HMO in Newcastle-under-Lyme was transformed into a hugely desirable home for Keele students.
Successful property investment is very much about choosing the right strategy.
We know first-hand that choosing to invest in student property in the Potteries can be a very lucrative strategy.
Provided, of course, that you give the students what they want.
4. Stoke is witnessing an influx of investment
Average Grade A Office space costs 57% less than Manchester and 55% less than Birmingham. And the average cost of an industrial unit is 17% less in Stoke than it is in Birmingham or Manchester.
The heritage of Stoke-on-Trent is playing a big part in its future investment. The Ceramic Valley Enterprise Zone is at the forefront of Stoke’s continuing economic growth – driving the area’s already enviable reputation as a major centre of manufacturing know-how.
Stoke-on-Trent is great for tourism. Alton Towers alone attracts more than 650,000 visitors every year. And some of those visitors like to stay here for the weekend. Hence the reason serviced accommodation is also a great property investment strategy in the area.
Statistics from local business support and investment experts, Make it Stoke-on-Trent and Staffordshire, state that more than £2bn will be invested in the area in the coming years. This will be in the form of office, industrial and retail projects.
As we highlighted earlier, major multinational protagonists have chosen to make Stoke-on-Trent their home. And ongoing investment from those big hitters is creating a huge number of jobs across Staffordshire:
- JCB, the world leaders in construction machinery have announced 2,500 jobs;
- The UK’s largest car manufacturer, Jaguar Land Rover, will be creating 1,400 jobs at its new engine plant;
- The world’s largest online retailer, Amazon, have announced 1,200 jobs at a new distribution plant at Trentham Lakes near to the Bet 365 Stadium.
Job creation is, of course, the natural consequence of investment.
Here at HYPE, we have first-hand experience of the natural by-product of job creation. That is, of course, people needing a place to live.
Music to the ears of property investors.
5. The ‘Master Plan’ is coming to fruition
An ambitious plan, initially devised and set in motion back in 2011, is starting to take shape. What seemed a little adventurous at the time is now very much in progress.
Councillor Daniel Jellyman of Stoke council, recently affirmed, “Stoke-on-Trent is changing rapidly and there is a real confidence about the City now.”
Major new developments that were outlined in the Master Plan are beginning to transform the horizon across the Potteries. New housing is being erected around the City. This is evident in the heart of Stoke centre and on the site of the old Victoria Ground (the former home of Stoke City Football Club).
Major distribution centres have had the green light at key sites across the area.
Stoke train station
Perhaps the most exciting development will be happening at Stoke train station and the surrounding area.
This will be the subject of a major transformation in the coming years. These improvements will accommodate the estimated growth in rail travel, the impact that the new HS2 will have on the City, and the growth of the City itself.
The proposal for the development of this area includes Goods Yard. £16m from Levelling Up Funding, is helping to create a vibrant micro neighbourhood urban quarter. The idea being to attract young professionals to Stoke-on-Trent.
It will include retail units, a hotel and offices. Additionally, it will also be home to the hugely impressive Ceramic Valley Enterprise Zone – one of only 26 enterprise zones nationwide.
This excellent initiative will support new businesses and a wide variety of light industries. Furthermore, it will reinforce Stoke as the ceramic capital of the world.
The investment doesn’t end there
Keele University’s iC5 Innovation Centre has brought high-tech research and development companies to the area. And the dynamic Smithfield project with its hotel, retail and office space will create more than 4,000 jobs in the Hanley area.
So what does all this mean for property investment in Stoke-on-Trent?
Well, it stands to reason that development and regeneration will reinvigorate the economy. It will create jobs and bring more people to the area.
And those people will need somewhere to live.
This is where HYPE can help. We have a proven track record of property sourcing, refurbishment and letting.
Many of our landlords live hundreds of miles from Stoke-on-Trent. But they have chosen HYPE for the hands-off solution to property investment and property management that we provide.
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