A younger population can bring advantages such as attracting businesses, which will have a larger pool of working age residents to draw from.
While recent data by the Office for National Statistics (ONS) show that the UK is facing an aging population, key cities remain a hub for the young. What difference does the age of a city make?
With its beautiful, calming scenery and rich history and culture, the UK is home not just to the native Brit, but also millions of immigrants.
Over the past 20 years, younger people have increasingly chosen to live in the urban areas of the UK, while the share of older residents has fallen. Statistics show that the UK’s edgy and lively cities remain a favourite among the younger generation with 62% of people aged 18 – 34 living in cities in 2016 compared to 58% in 1996. In contrast, the share of people aged 65 or older fell from 51% to 46% during this period.
A recently released study by the Centre for Cities reveals some of the youngest cities in the UK, with Slough as the clear winner at the youngest average age of 33.9. London, popularly assumed as the city with the youngest population, comes in at sixth place, with the average youngest age of 36.5. Here is a list of some of the youngest cities in the UK, with average ages of under 40:
What draws the younger population to these cities? Job opportunities and expansion, good infrastructure, facilities and educational institutions — these are the essential pull factors. On the other hand, a younger population can bring advantages such as attracting businesses, which will have a larger pool of working age residents to draw from.
Among the cities which have been getting younger, Oxford, Cambridge and Brighton have large shares of high-skilled, high-paying jobs, and all offer good access to quality schools.
Manchester, the UK’s fastest-growing city, is Europe’s second largest creative tech hub with 70,000 people now working in the city’s creative, digital and tech industries. Like Liverpool, it is also home to some of the world’s leading universities, offering a huge cache of thinkers to future employers.
It is in cities like these that purpose-built student accommodation are at high demand, offering commercial property investors opportunities to grow their wealth in this high-yielding and unique sector.
In Bristol, for example, the number of students needing accommodation is projected to grow to 44,000 by the 2018/19 academic year. The growth can be attributed to the city’s two notable universities, the University of Bristol and the University of West of England, which make up a total of 40,000 full-time students. Little wonder that student property is a top investment in Bristol.
Meanwhile, Liverpool’s £2bn vision to develop a world-class Knowledge Quarter will further reinforce its status as one of the best student cities in the world. The Knowledge Quarter represents an opportunity for significant future investment and regeneration, and will ultimately create more high-skilled jobs in the city. By attracting investment and creating jobs, people’s lives are improved and opportunities are created, thus attracting a greater number of young settlers and driving housing demand.
Private Finance and Savills have now placed Liverpool and the overall Northwest as the top hotspots for buy-to-let investors with some of the highest comparative returns. Does this pique your interest to grow your wealth in cities with a youthful population? Speak to us and find out more. Or send us a comment below!
Next week, we talk about cities with an ageing population and the opportunities they hold. Stay tuned.
By Marzatul Ruslan
CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and commercial property including student accommodation and carehomes, in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc) and Australia (Melbourne, Perth, Brisbane). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts.
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