Tech cluster house prices outperform UK average

Regional technology clusters have outperformed average property prices in the UK by up to 32%, according to new research. Crowdfunding platform Property Partner drew on data from Tech City UK and the Office of National Statistics on seven out of 10 clusters outside London. In the top three most established tech hubs – Cambridge, Reading and Oxford – property prices have increased by 31%, 32% and 22% respectively since 2011. And while prices around Silicon Roundabout in Shoreditch, EC1, have risen by 48% over the same period, prices there have more recently eased, with a 4.3% rise in the past year. Home to Amazon and American Express respectively, Bristol and Brighton are attracting a growing population of tech workers looking to relocate from London. Inward tech investment has helped boost local prices by 15% in the past 12 months and 45% over five years, outperforming the UK average. Manchester, Southampton, Ipswich and Leicester are emerging as key regional clusters. Despite lower growth over five years, all four cities have seen house prices swell by 1%, 3.7%, 3.1% and 3.8% respectively, over the past 12 months, suggesting the potential for future growth. Exeter is the one outlier, where property prices are close to the regional average despite a significant tech cluster around Exeter University led by equity crowdfunding platform Crowdcube. Property Partner cites proximity to London as a factor in tech-driven house price growth. Chief executive Daniel Gandesha said: “The digital economy is expanding rapidly, creating new jobs and opportunities across the UK, but it is not evenly spread. As a large-scale buyer of residential property up and down the country, we know that tech clusters drive local incomes and in turn house prices. “Alongside key infrastructure projects and regeneration, tech clusters are changing neighbourhoods such as Deansgate in Manchester and Cambridge. Innovation, creativity and entrepreneurship in the tech sector is not only transforming everything we do on a daily basis but is also strengthening the British economy. For property investors, it is a case of following the tech jobs.” Location Tech concentration (Tech jobs per 1,000 residents) Average house prices July 2011 Average house prices July 2016 % change 1 year % change 5 years Performance v UK average over 5 years Cambridge 15 £278,894 £442,518 8.4% 58.7% 31% Reading 14 £192,547 £307,718 18.5% 59.8% 32% Oxford 13 £277,502 £415,484 6.2% 49.7% 22% Manchester 10 £122,780 £151,944 9.3% 23.8% -4% Southampton 10 £150,874 £198,642 12.0% 31.7% 4% Exeter 7 £196,810 £235,848 6.5% 19.8% -8% Ipswich 7 £130,930 £177,998 11.4% 35.9% 8% Leicester 6 £118,935 £151,541 12.1% 27.4% -1% Brighton 6 £245,827 £355,688 14.4% 44.7% 17% Bristol 6 £175,367 £255,168 15.4% 45.5% 18% UK average   £170,965 £219,515 8.3% 28.4%   • To send feedback, e-mail shekha.vyas@estatesgazette.com or tweet @ShekhaV or @estatesgazette