--- title: "UK Investment Zones: Good News for Investors - Rents on the Rise" description: Discover how UK Government Investment Zones are driving up rents for investors. Learn more about the potential benefits and how to make the most of them. image: https://blog.magnateassets.com/hubfs/Good%20News%20for%20Investors%20-%20UK%20Government%20Investment%20Zones%20are%20Driving%20Up%20Rents.jpg --- [![logo](https://blog.magnateassets.com/hs-fs/hubfs/logo.png?width=216&height=50&name=logo.png "logo")](https://magnateassets.com/) × - [Properties](https://www.magnateassets.com/en/searchresult) - [Off-Plan](https://www.magnateassets.com/en/searchresult?proType=Off-Plan) - [Completed](https://www.magnateassets.com/en/searchresult?proType=Completed) - [High Yield Investing](https://www.magnateassets.com/en/high-yield-investing) - [HMO (Houses in Multiple Occupation)](https://www.magnateassets.com/en/property-hmo) - [Student Accommodations](https://www.magnateassets.com/en/property-student-accommodations) - [Property Sourcing](https://www.magnateassets.com/en/property-sourcing) - [Property Concierge](https://www.magnateassets.com/en/property-concierge) - [Land Options](https://www.magnateassets.com/en/searchresult?proFor=Local&proType=Land%20Options&country=UK) - [Property Bonds (Promissory Notes)](https://www.magnateassets.com/en/property-bonds) - [Buildings](https://www.magnateassets.com/en/searchresult?proType=Buildings) - [Build-to-Rent Projects](https://www.magnateassets.com/en/build-to-rent-projects) - [Equity Investments](https://www.magnateassets.com/en/equity-investments) - [Funding Partnerships](https://www.magnateassets.com/en/funding-partnerships) - [Locations](https://magnateassets.com/en/location) - Resources - [Blog](https://blog.magnateassets.com) - [Podcast/Webinars](https://www.magnateassets.com/en/video-gallery) - [Guides](https://info.magnateassets.com/guides) - Finance, Tax & Legal - [Mortgage Calculator](https://magnateassets.com/en/mortgage-calculator) - [Mortgages & Finance](https://www.magnateassets.com/en/mortgages-and-finance) - [Property Transfer & Legal](https://www.magnateassets.com/en/property-transfer-and-legal) - [Tax Planning and Set up](https://www.magnateassets.com/en/tax-planning-and-set-up) - [UK Immigration Information](https://www.magnateassets.com/en/uk-immigration-information) - [Managing Your Properties](https://www.magnateassets.com/en/managing-your-properties) - [Furniture Packs](https://www.magnateassets.com/en/furniture-packs) - About Us - [Meet the Team](https://www.magnateassets.com/en/meet-the-team) - [Contact Us](https://magnateassets.com/en/contact-us) - [UK Property Investment](https://www.magnateassets.com/en/for-uk-property-investment) - [Developer Partnerships](https://www.magnateassets.com/en/developer-partnerships) # Good News for Investors - UK Government Investment Zones are Driving Up Rents Published by Keith Egan on Apr 17, 2023 A UK Tax expert David Hannah claims that the government's 12 new high-growth investment zones have already begun to drive property prices up in the Midlands and Northern England, which is helping investors ROI and appealing to new investors. The proposals to 'supercharge' the Northern regions with £80m of funding over five years will aim to improve skills and local infrastructure clustered around universities or research institutions. In turn, this will aid sectors such as technology, artificial intelligence, and the creative industries, which have traditionally operated in London.  There are 188,812 tech firms with payrolls across the UK, with 44,831 of those residing in the capital. However, the new proposals and the increasing rent costs by 9.1 per cent for properties in London are expected to prove too prohibitive for workers to stay, pushing them further North to escape the increasing cost of living.  Hannah says: “It is no surprise that renters and homeowners are fleeing from the South, especially with many choosing to move further North due to the overwhelmingly cheaper cost of housing. As of March 2023, the Office of National Statistics reported that the Northeast still has the lowest average house prices in the UK at £163,000, while London has the highest at £534,000. Hannah says therehas been a concerted effort from the government to spread the wealth evenly throughout the UK and the introduction of these investment zones should increase the amount of jobs and businesses in these regions which will inevitably effect property prices. "Not to mention providing more job opportunities for those who are currently unemployed causing a rise in wages and potential property buyers. The Chancellor did outline employment as a priority in the announcement and specifically a measure of having apprenticeships available in the skilled trades for over 50-year-olds. Naturally, this could positively affect the chronic undersupply of properties in the housing market if we have more skilled workers that are able to work in the construction sector. "This is a good measure that helps address skills shortages, which are currently affecting 83% of businesses within the construction industry, according to research by recruitment specialist Search Consultancy. I think anything that they can do to expand the construction sector is welcomed – it is a supply crisis that we are seeing in the property market, not a demand crisis. They are focusing on getting workers to return to work and that should inevitably speed up construction. Topics: [Insider](https://blog.magnateassets.com/tag/insider), [UK Property](https://blog.magnateassets.com/tag/uk-property), [Real Estate Market](https://blog.magnateassets.com/tag/real-estate-market), [Market Trends](https://blog.magnateassets.com/tag/market-trends), [Rents](https://blog.magnateassets.com/tag/rents) ![Keith Egan](https://blog.magnateassets.com/hubfs/image.png) Written by [Connect on LinkedIn ↗](https://www.linkedin.com/in/keith-egan-a4585613a/) [Keith Egan](https://blog.magnateassets.com/author/keith-egan) Keith Egan has spent 30+ years in senior real estate roles across the UK, Dubai and the MENA region. As Director and Co-Founder of Magnate Group, he leads Magnate Assets focused on UK residential investment, lead generation and digital marketing and the Magnate Investments Division, Magnate's development finance and structured investment arm. Keith specialises in connecting landowners, developers and investors with regulated, technology-driven funding structures and fractional ownership solutions, bridging institutional-grade UK real estate with a wider pool of domestic and international capital. - #### Share: - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/facebook.svg)](http://www.facebook.com/share.php?u=https://blog.magnateassets.com/good-news-for-investors-uk-government-investment-zones-are-driving-up-rents) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/twitter-sign.svg)](https://twitter.com/share?text=Good%20News%20for%20Investors%20-%20UK%20Government%20Investment%20Zones%20are%20Driving%20Up%20Rents&url=https://blog.magnateassets.com/good-news-for-investors-uk-government-investment-zones-are-driving-up-rents&hashtags=weareawesome&via=bluleadz) - [![](https://f.hubspotusercontent10.net/hubfs/445465/icon/linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.magnateassets.com/good-news-for-investors-uk-government-investment-zones-are-driving-up-rents) [Back to Blog](https://blog.magnateassets.com) ### Popular Blogs \[Insider, UK Property, Real Estate Market, Market Trends, Rents\] - 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