Cambridge topped Colliers’ latest Top UK Residential Investment Cities research for the second year running. The H2 2022 report, which ranks locations based on a number of different factors including economics, research and development, liveability, property and environmental, saw three cities within the UK’s ‘knowledge triangle’ in the top five, with Oxford fourth and London ranked fifth.
Edinburgh (second) and Glasgow (third) make up the rest of the top five ranking, which showcases UK cities that are the best prospect for residential investors, including BTR.
Cambridge came out on top largely thanks to its university, highly skilled workforce and favourable employment and earnings prospects. The same dynamics were at play in Oxford, but it was slightly impaired by a lack of green space and comparably poor internet connectivity.
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 that 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.”
Cambridge, Oxford and London also ranked in the bottom five in the property pillar of most affordable cities, with Glasgow – which saw the average price for a flat increase by 35% between October 2017 and October 2022 – topping the list.
Kevin Coughter, from Colliers’ residential team, said: “When comparing the landscape for renters and buyers in the South East to 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.”
