Planned regeneration projects across the UK will increase the value of the national housing market by an estimated £188bn, according to research by property developer, Stripe Property Group.
The housing market has benefited from booming house prices in recent times, increasing by more than 6% in the past year alone.
Moving forward, continuing price rises are less predictable due to external market factors, but there are 38 areas of the UK that the Government has earmarked for significant regeneration, which means house prices in these areas are destined to enjoy an additional lift in the near future.
James Forrester, managing director of Stripe Property Group, said: “Such an extensive level of regeneration is great news for those areas due to benefit.
“There are large chunks of the UK that have long been neglected when it comes to central funding so it’s great to see such a large number of promised investment zones.”
Furthermore, previous research from CBRE states that regeneration results in an average local house price rise of 3.6%.
Across the 38 selected investment zones, the average house price is currently £244,323.
A 3.6% increase will push this up to £253,119 – an increase of £8,796.
The biggest house price boost will be seen in and around Greater London where a 3.6% increase will add £19,567 to the average house price.
In the investment zone of Central Bedfordshire Council, regeneration is expected to add £13,842 to the average local property price, bringing it to a new high of £398,342; while for Essex County Council, regeneration will increase house prices by £13,635.
Across all 38 areas, there are 16.3 million homes, and with an average house price of £253,119, this creates a total market value of £5.2 trillion.
If planned regeneration does bring about a boost of 3.6%, total market value will grow by £188bn to a new total of £5.4trn.
Forrester added: “If the regeneration projects are well targeted, they will bring new potential to some much-forgotten corners of the country which, in turn, will breed opportunity and prosperity in each local area.
“If, however, the government does not target its regeneration efforts properly, there is a risk that yet more money will be poured into the wrong places, with the resulting house price increases only creating greater inequality within the market.”
