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FOCUS ON: COVENTRY Growth Between January 2017 - May 2020

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FOCUS ON: COVENTRY Growth Between January 2017 - May 2020 Housing supply analysis Development pipeline Connectivity Focus on: Coventry knightfrank.com/research knightfrank.com/research 2020/2021 FOCUS ON COVENTRY 2020 FOCUS ON COVENTRY 2020 House price performance in Coventry compared FOCUS ON: COVENTRY Growth between January 2017 - May 2020 Up and coming Coventry – awarded UK City of Culture 2021 and witnessing rapid growth in student numbers that are fuelling construction and regeneration – is a place people increasingly want to relocate to. ouse prices have seen double digit the wider West Midlands region over Midlands region. Out of the city’s total H growth over the past three years, the next decade, according to Experian. population, 30% are aged between 20-34, while a lack of purpose-built student The city’s gross value added (GVA), compared to 20% for the wider region, 1% 9% 11% 17% accommodation in the city centre is a measure of the value of goods and according to the ONS. Just 14% of the London UK Birmingham Coventry supporting demand in the private rental services produced in an area, is set to 371,251 residents are aged over 65. Since sector. The city is also primed to benefit rise 17% by 2030, outperforming all mid-2014, Coventry’s population has Source: Knight Frank Research, Land Registry from the upcoming 2022 Commonwealth other local authority districts in the grown 11%. Games in Birmingham with Coventry set region bar Worcester and Birmingham, Data from the ONS, which tracks with Coventry’s number of households metropolitan boundary. Data from due to complete by the end of 2021. to host three sports. which are set to see their GVA climb 18% migration around the UK, also shows the forecast to rise 12% between 2018- construction intelligence provider Cadent Gas has selected the site for its and 19% respectively. In Coventry, house prices have risen 17% number of people moving into Coventry 2028, according to ONS data, equating Glenigan indicates 5,295 units were in new headquarters. since the beginning of 2017, outpacing Analysis of resales during May 2020 increased by 27% between June 2015 and to 18,742 new households, and the the planning pipeline as of September the growth seen in the West Midlands, show property prices across Coventry June 2019. Closer analysis shows that, in government’s proposed move to set the 2020, largely among eight schemes Rental market as well as in London and the wider UK and immediate surrounds average £215 the 12 months to June 2019, 31% of these bar for delivery higher under its new which make up 70% of the total. These Asking rents for a two-bed flat in market. Growth has been boosted by an per square foot, which compares to £203 movers were aged between 20 and 24, with planning proposals, the city will need to are all located either towards the south Coventry during the third quarter undersupply of housing, employment per sq ft in Birmingham and £217 per those aged between 25-29 making up 11%. expand to house its growing population west of the city close to the University of averaged £811 pcm, with the top 10% opportunities, and a growing local sq ft in Leicester, the two nearest major over this period. Warwick or in residential suburbs north The median age in Coventry is 32.1 years, of the market reaching £1,195 pcm, economy supported by the development cities to Coventry. At the top end of the of the city centre. younger than both London at 35.6 years Residential construction in Coventry according to data from Rightmove. of innovation-led businesses and high- market, looking only at the top 10% of and Birmingham at 32.6 years. is currently largely being carried out Commercial real estate projects in In the city centre, specifically the profile employers from Jaguar Land sales by value, an average price of £313 by housebuilders on the outskirts Coventry include ‘City Centre South’ CV1 postcode district where Coventry Rover, to Peugeot and HSBC. Despite this, per square foot was achieved during the One reason for this is the city’s burgeoning of the city centre and towards the which aims to upgrade several areas of University is based, rents averaged average house prices are £192,346, which month in Coventry. student population. Student numbers the historic heart of the city, including £951pcm, with the top 10% of the is 23% below the UK average. Knight in Coventry have shot up by 43% since Demographics and Bull Yard, Shelton Square, City Arcade market reaching £1,350. Frank predicts UK house prices will rise 2013-2014 compared to 9% across the student housing Prime asking rents for a and Hertford Street. The 560,000 sq ft 14% between 2020-2024. UK. International student numbers have Coventry’s rental market is supported 2-bed flat – Q3 2020 development will include new retail, a Coventry boasts a relatively young jumped 28% in Coventry since then, by demand from students studying at Against this backdrop, Coventry’s Based on average of top 10 pavilion, a cinema, private and rented population compared with the West compared to an 8% rise across the UK. percent of the market two of the UK’s top-rated universities. economy is set to outperform most of residential accommodation and a hotel. Coventry University was named 15th However, despite this large and best university in the country this year growing student population, 64% of uu £1,350 in the Guardian University Guide 2020, Coventry outperforms students in Coventry are unable to access Coventry boasts a with nearby Warwick University taking Total average price growth, prices indexed 100 = Jan 2017 purpose built student accommodation relatively young population 9th spot. (PBSA), according to according to Higher London UK Coventry Birmingham compared with the West Education Statistics Agency data. As Midlands region. 120 Local Economy a result, there is high demand from uu and Employment 115 students for accommodation in the 110 private rented sector. £1,195 Between 1,100 and 1,400 new jobs are Other large local employers include estimated to be created, with up to 620 National Grid, E.ON, Coventry City 105 Pipeline and development additional construction jobs created Council, Coventry Building Society, and 100 Housing delivery data indicates that throughout the duration of the project. The Financial Ombudsman Service. over the next decade, Coventry will 95 Just outside Coventry, works began Coventry also has access to key research need to step up to house its growing Coventry City centre 2017 2018 2019 2020 in August this year on a £40m office and development centres, including population. Some 1,499 net additional Source: Knight Frank Research Source: Rightmove development based at the 200-acre the Mira Technology Park which is dwellings were delivered in 2018-19. But Prospero Ansty business park with works developing the latest automotive 2 3 FOCUS ON COVENTRY 2020 FOCUS ON COVENTRY 2020 technologies, and the Advanced uu new jobs, according to University of Hull run for twelve months from May 2021. Manufacturing Centre, which has over research. Its UK City of Culture accolade The city has also been awarded a £12m Coventry, Birmingham and Leceister compared Coventry has taken 700 employees helping hundreds of also accelerated or attracted new funding government grant to help kick-start its Average rent per sq ft (May-20) precautionary steps to companies across a range of industries. for major capital projects in the city, with economic recovery. Half of the money safeguard the event in light more than £48m invested by Hull City will go to support Coventry’s year as UK Leicester Birmingham Coventry This summer, the West Midlands of COVID-19. Council in public realm enhancement City of Culture. A large portion of the Combined Authority (WMCA) drew uu and major developments of the Ferens funds will also go towards plans for a up a £3.2bn investment pitch to the Art Gallery and Hull New Theatre. tram network. £217 £203 £215 government seeking funds to support Average Average Average scientific and technological research Four years earlier, about £120m was Winning the UK City of Culture title in Coventry, including a digital City of Culture boost invested into Londonderry as a result at the end of 2017 has already boosted innovation fund to support Coventry’s of the initiative, according to a City tourism in Coventry. Last year alone, Coventry is the third UK City of Culture. £310 £334 £313 5G accelerator hubs. Council report, enabling it to accelerate Coventry recorded over 10m visitors. In Top 10% of Top 10% of Top 10% of The initiative, which is administered the market the market the market programmes such as the park-and- economic terms the visitor economy was The funds form part of a wider post- by the Department for Digital, Culture, ride system and development of the worth £594m last year – a 4.6% increase lockdown recovery plan, helping to drive Media and Sport, has already brought promenade next to the River Foyle. In on the previous year. a swift economic recovery to create or in hundreds of millions of pounds in total, roughly 400 jobs were created. Source: Knight Frank research protect more than 135,000 jobs and build investment for former city title holders. 35,000 new homes. It was brought in to build on the success The accolade is expected to drive similar of Liverpool’s year as European Capital investment and job creation in Coventry. The WMCA has also identified HS2, for Culture in 2008. The inaugural The West Midlands Combined Authority Coventry City of Culture and the holder of the award was Northern anticipates the economic benefit could be Birmingham 2022 Commonwealth Ireland’s Londonderry in 2013 and in in excess of £1bn, when combined with WHAT’S IN THE PIPELINE? Games as opportunities to create jobs 2017, Kingston upon Hull took over the Commonwealth Games.
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