Comparing the Northern Powerhouse heavyweights
The key to Northern Powerhouse success is ensuring the sometimes neglected city regions are able to realise their economic potential. The task isn't a small one and the Northern Powerhouse government minister is committed to balancing the UK's economic output. Some positive outcomes of this focused strategy are emerging, as the Northern Powerhouse regions have seen inward investment increase even faster than the UK average. According to EY’s latest UK Attractiveness Survey, the north west region attracted 90 foreign direct investment (FDI) projects in 2016 – 60 per cent of which were first time investments in the region.
Centre for Cities has compiled data on 63 of the UK’s cities to understand and improve economic performance. So how do the cities of Leeds, Liverpool and Manchester compare when it comes to house prices, employment, GVA and graduate retention, all key factors for buy-to-let investors.
In the report, mean house prices in Manchester are £175,419, whilst in Liverpool they are lower at £131,046. In Leeds the mean house price is the highest at £186,206, although when you take population growth and demand for property into account, it is evident that Manchester is a good choice for investors as the population size in 2015, placed Manchester 3rd out of 63 cities in the UK.
The Centre for Cities research also took into account graduate retention rate, or graduate gain. Graduate retention gives an indication of a city's ability to retain newly qualified graduates based on job prospects, wages and quality of life. Leeds graduate gain is the 3rd highest of all UK cities, whilst 50% of students who left Liverpool for university subsequently came back to work after graduation.
*The cities are ranked in order out of 62 or 63, dependent on the criteria, with places closer to 1 at the top of the list.
*"The Centre for Cities uses data for Primary Urban Areas (PUA) in its analysis. This is a measure of the “built-up” area of a city, rather than individual local authority districts. PUAs are used in our analysis because they provide a consistent measure to compare concentrations of economic activity across the UK. This makes PUAs distinct from city region or combined authority geographies."
Source: Centre for Cities, The great British brain drain – an analysis of migration to and from Leeds; Centre for cities, The migration of students and graduates; Northern Powerhouse https://northernpowerhouse.gov.uk/