The golden triangle of Cambridge, Oxford and London has dominated Colliers’ latest Top UK Residential Investment Cities report.
Cambridge topped the ranking for the second year running, with it university, highly skilled workforce and favourable employment and earning prospects. It was followed by Edinburgh, Glasgow, Oxford and London.
The report, which looks at features including economics, research and development, liveability, property and environment, found the golden triangle cities scored particularly highly due to the burgeoning life sciences sector.
The R&D pillar ranks cities based on their levels of student enrolment, university rankings, qualification of population and level of business start-ups.
All three cities also boast a high median income and a high share of residents living in rental accommodation.
Oliver Kolodseike, head of economic research at Colliers, said: “When looking across our UK cities, it is impossible to ignore the impact of the knowledge triangle that has developed between Cambridge, Oxford and London.
“One of the key factors in the development, and subsequent population growth, of our regional cities is the retention of the best talent and external investment – something both Cambridge and Oxford are very successful at.
“Add to this that the cities rank first and second in our liveability pillar due to their high density of leisure facilities and attractions, the argument for residential development is hard to argue against.”
Kevin Coughter, from Colliers’ residential team, added: “When comparing the landscape for renters and buyers in the South East with the rest of the UK, it demonstrates just how much the lack of supply in markets such as Oxford and Cambridge have pushed up prices.
“In these cities the opportunity for residential development is hampered by a lack of opportunities due to planning constraints and the historic nature of the city, however we are seeing opportunities arise.
“In Oxford, the recent forward funding of 150 BTR units by Grainger is testament to the progress we are seeing. For those investors that are willing to take the time to understand these markets there are huge rewards; a ready-made pool of buyers and renters, strong economic fundamentals and the creation of housing in a city that will be attractive to many given the amount of amenities.”
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