COMMENT As the UK’s minister responsible for investment, it is my job, ultimately, to be the chief salesperson for the UK. And it’s not hard to bang the drum for the UK – we have so much on offer for investors and there has never been a better time to invest.
I spend a vast amount of my time connecting with global investors and they rightfully want a piece of the UK. In fact, the proof is in the pudding. The UK hosted the Global Investment Summit at the end of last year, which saw investors from around the world back the UK with nearly £30bn of investment.
So why invest in the UK? Well, frankly we have a compelling offer – we sit on the saddle of time zones, we have the language of international business and we have an incredible population with some of the brightest people in the world. We also have a mature, high-spending consumer market, an open, liberal economy, and a business-friendly regulatory environment.
Diverse opportunities
As the foundation block of the UK’s economy and its prosperity, real estate remains a prime destination for international capital investment. We have a robust market with a wealth of investment opportunities – from green buildings and build-to-rent, to regional offices and R&D developments.
The regions up and down the UK offer rich, diverse investment opportunities across the real estate sector. Take the North of England, a jewel in the UK’s crown. It is a hub of connectivity with four international airports and, with its high quality of life, it is a popular choice to live, work and study.
The Midlands is one of the UK’s leading destinations for real estate investment. It has a growing offer across the private rental sector which is one of the strongest clusters for investment outside of London. In fact, 600,000 homes are needed in the next 15 years. The region is home to global firms such as Goldman Sachs, Rolls-Royce and HSBC. The South of England is the most affluent region of the UK. There is a near-continuous demand for all types of property, which leads to high rents and capital appreciation. With a highly competitive property market, it attracts investors from around the world looking to place their capital in the region’s real estate.
Green mission
The UK is on a mission to reach net zero by 2050, and the real estate sector is at the forefront of attracting the investment needed to decarbonise our homes and buildings. We’re seeing a growing success in the decarbonisation of our environment and big investors are already recognising the UK as a hotbed for green investment. For example, Siemens, Ørsted and Boeing are choosing to locate and invest in net zero developments in the North of England.
If all the above wasn’t enough, we’ve also got our booming freeports and investment zones which represent a generational shift in UK competitiveness. With different economic regulations, they create perfect places for businesses to innovate and grow as businesses can capitalise on a package of measures including tax relief, customs, planning and trade and investment support. All eight freeports in England are open for business with designated tax and custom sites. Freeports in Scotland and Wales will open for business in spring 2024, so there’s going to be huge potential.
Innovation drive
The UK’s investment zones will also create hotbeds for innovation, where both public and private sector investment in R&D will bring innovators together and create fantastic opportunities to trial new ideas and technologies. A dozen investment zones have been announced across the UK – eight in England and two in both Scotland and Wales. An enhanced investment zone will be established in Northern Ireland.
We expect the first investment zones to be open for business in the spring.
Brimming with top-tier real estate investment opportunities, investors have the pick of the crop in the UK. From substantial build-to-rent opportunities in Belfast and regeneration schemes in Cardiff, to net zero commercial office space in the heart of Manchester city centre, real estate investors should choose the UK, and they should choose it now.
It’s a no brainer.
Lord Dominic Johnson is minister for investment at the Department for Business and Trade
