The South East of England has not had the same level of house price growth as the Midlands or the West of England in recent years. Within this region, however, Milton Keynes has become an anomaly, defying all expectations to become one of the best cities in the UK for house price rise. According to MK Citizen, the annual house price growth for properties in Milton Keynes increased by a remarkable 15.6% over the previous year as of November 2022. The average house price in September 2022 climbed 3.9% over the previous month of August. This degree of increase can be attributed to a variety of factors including the economy, job opportunities, regeneration, rising wages, and businesses with occupancy in the area. Learn more about UK house prices 2023.
Property shortages can also have an impact on price growth because demand exceeds the supply, forcing homeowners to raise the market value of their homes. According to Northants Chamber data, there was 997 properties available for purchase in Milton Keynes in August 2022, compared to 3,685 in 2007. This is primarily attributable to the fact that Milton Keynes was not the economic powerhouse that it is today at the time. For many years to come, Milton Keynes could be set for even higher home growth relative to economic development. This article will concentrate on the factors that have catapulted Milton Keynes into economic prosperity in recent years.
Overseas investments and tech-based firms relocating to Milton Keynes have been major economic drivers in recent years. According to a study conducted by the Centre for Economics and Business Research (CEBR), Milton Keynes will increase by £600 million over the next two years. Milton Keynes is located within the Oxford-Cambridge Arc, which is regarded globally as vital for innovation and business. The city of Milton Keynes benefits from strong production levels and the growth of new businesses.
Job opportunities in Milton Keynes aided the economy's dramatic transformation. According to an ONS report, science, engineering, and technology jobs increased by 340% between July 2021 and July 2022. Milton Keynes' tech sector is one of the most flourishing in the country. This has resulted in an extremely high startup rate for tech companies. Milton Keynes is also known for being a prime location for testing new technology and breakthroughs. According to Whitecap, Milton Keynes' GVA in 2022 was at £14.7 billion. This demonstrates the economy's productivity. It is believed that one-fifth of all firms in the city are tied to technology. This is projected to increase further as technological developments become more widespread in the future years.
Milton Keynes benefitted from substantial real estate growth in 2022. The average house price has risen by more than £50,000 in the last year, according to Land Registry. In September 2022, the average house price grew by 3.9% over the previous month to £336,018. Following these changes, Milton Keynes is now ranked ninth in yearly growth among 64 South East England local towns and cities. These advancements have also improved Milton Keynes rental yields, where the average rental yield is 5%. The district with the highest yield (8.4%) is MK9.
Milton Keynes has been a prominent area for Buy-To-Let property transactions in the last two years. According to Paragan Bank, Buy-To-Let completions surged by 667% in 2021 compared to the previous year. This could be due to the removal of pandemic limitations and the appealing position of Milton Keynes, which has numerous robust local economies and multiple commutable routes to popular areas in the UK. Milton Keynes is one of the most efficient areas in the UK for commuting, with rail links to London, the Midlands, and the North, as well as a linked motorway and only a 30-minute drive from Luton Airport.
Property renovation is also on the rise in Milton Keynes. According to Business Leader, global engineering company Metal Work UK Ltd recently acquired a freehold business unit in Milton Keynes with a 6,220 sq ft warehouse and 9,743 sq ft of office space. They are working with Kirkby Diamond's building consultancy department to extend and refurbish this unit. This move aims to create many new job opportunities and enhance the influence of the commercial property market across the Milton Keynes region, as well as provide a wide range of services and relocation possibilities.
Another effort being promoted is the development of 200 new eco homes, complete with courtyards and leisure areas, to replace the Serpentine Court on Bletchley's Lakes Estate. After planning permission was granted in 2020, a poll was created to vote on the scheme's approval. According to MK Citizen, 93% of voters wanted to demolish Serpentine Court and redevelop the estate. Eco houses are mostly constructed of environmentally friendly materials and require less energy to operate once completed. When built, these structures will provide potential occupants with affordable housing and manageable energy costs. Another Milton Keynes neighbourhood, Fullers Slade, will witness the construction of 369 new homes. 20% of which will be affordable, as will the refurbishment of existing council homes and the creation of a community hub with shops and other amenities.
With all of the advancements being made, Milton Keynes is poised to blossom into an economic juggernaut. The economy is at the centre of this region's continued prosperity, and it will only get better with time. Property prices set a new high in 2022 and are expected to rise further this year. Property investments for buy-to-let may also surge as house building accelerates and eco-friendly properties enter the market.
Log In
Request Access
