The recent COP26 event has left us with environmental concerns at the forefront of our minds – but for those of us who are constantly looking for the next lucrative investment, this renewed interest in clean technologies is an opportunity to reflect on how whose green initiatives could present golden opportunities.
It is particularly important to think of the investments that have been promised within the framework of COP26 – in particular by large financial entities. One of the cornerstones of the COP26 agreement was, for example, that financial institutions should direct funding towards clean technologies such as renewable energy.
Such investments will inevitably have ripple effects on local economies, creating better jobs, contributing to renewal and rejuvenation programs and, by extension, increasing property values.
As such, identifying where such projects are being funded is an effective way to spot investment opportunities – and the North of England immediately presents itself as an area brimming with green investment potential.
In any case, that was the conclusion of a recent report by the North East England Chamber of Commerce, which calls on the Department for Business, Energy and Industrial Strategy to support the region’s transition to greener energy production and capitalizing on what the Deputy House Policy Director, Rachel Anderson, describes as “an unparalleled foundation on which to build a global energy sector across our region.”
Reflecting on this “unrivaled base” in light of COP26 is therefore a new way to gauge which way the winds of investment are blowing, signaling to investors that this region could well be a lucrative option.
Green initiatives and low carbon economies
The North East England Chamber of Commerce is not the only organization to have noticed the significant economic opportunities of green technology investments for the North.
According to Bruntwood SciTech’s The Market Spotlight report, the UK’s commitment to net zero will result more broadly in the creation of 365,000 jobs – with the North West of England enjoying disproportionate economic benefits, in more from Yorkshire.
Similar projections have been offered by the Local Government Association, which predicts an even higher number of 1.18 million new jobs in the low-carbon sector by 2050, with the largest increases in these jobs being – of course – in the North East and Yorkshire and the Humber.
Of course, while investors will want to keep an eye on forecasts and projections, these developments in the North aren’t just hypothetical: they’re happening now.
In October, for example, it was announced that the government had chosen two northern sites as locations for multi-billion carbon reduction projects.
In Liverpool Bay and in the Humber and Teeside we are seeing the rise of the East Coast Cluster and Hynet respectively. These unique green businesses are designed to capture carbon emissions – with the added side effect of acting as significant stimulus to the northern economy as a whole.
Figures from the East Coast Cluster website suggest the project will reach over £2bn in gross value added by 2050, while Hynet predicts a contribution to the North West economy of up to £17bn sterling over the same period.
These are important economic stimuli that can have positive effects on the entire northern economy.
Investing in Northern Properties
Taking for granted, then, the fact that the northern economy is set to be further boosted by green initiatives, the question remains: how can investors make the most of this promising situation?
Given the long-term implications of these clean energy projects, it follows that real estate – a similar long-term business – is a smart way to invest in the region. Better job creation, heavy investment and good circulation of money in the northern economy are all factors likely to increase property values.
After all, some of the factors discussed above bring us to 2050 – and that kind of anticipation is best combined with bricks-and-mortar reliability.
Of course, while these intriguing long-term projections are enough to make the North a good place to invest, you don’t have to wait 30 years to see property values in the area increase.
In fact, in 2022 alone, the area – according to high-end real estate agent Strutt and Parker – could see a price increase of 7%.
Looking forward to the next four years, growth is also expected to reach 35% in property values, as the region’s historic affordability leaves its properties with considerable amounts of room to continue to grow.
Sustainable value of long-term investments
Although the pandemic may have initially spurred this desire to buy larger homes in less urban areas (which the north provides in abundance), this trend may well be irreversible, extending beyond the pandemic itself. .
At least the majority of members of the Royal Institution of Chartered Surveyors believe that prices will continue to rise over the next year solely due to scarcity relative to demand.
This means that the factors contributing to the continued growth of property values in the North are not necessarily going away anytime soon – even if the investments represented by green initiatives and other “upgrading” efforts strengthen the economies in which these properties exist.