Amazon warehouses spark local house price growth – Paragon

Amazon warehouses spark local house price growth – Paragon

 

The research analysed 10 Amazon Fulfilment Centres, including Daventry, Ellistown, Birmingham, New Rossington, Runcorn, Altrincham, Dunfermline, Tilbury, Dunstable and Banbury.

Average house prices in Dunstable and Altrincham achieved the highest growth of 23 per cent and 17 per cent in the year after the centre opened. Fife, however, reported a decrease in average house prices of four per cent.

The research also found that across that new-build house sales increased by 16 per cent, and the average number of homes in the private rented sector also grew by two per cent.

Analysis also showed that the opening of Fulfilment Centres had a positive impact on employment, with three per cent more jobs available in the year after opening and an average of a seven per cent fall in unemployment.

Paragon Bank’s managing director of mortgages Richard Rowntree (pictured) said the growth of warehousing in the UK stimulated demand for housing in both the homeowner and rented sectors, as well as buy-to-let.

He added: “As the pandemic has accelerated the trend towards online shopping, it is expected that greater numbers of warehousing units will be created, adding even more demand for property in those markets.

“Taking the Amazon Fulfilment Centres in isolation, the impact on property prices is clear and landlords will be looking at where new warehouse developments are located and how many jobs will be created as a result.”

The growth of online shopping has led to a boom in warehousing, with Savills pegging the number of warehouse units at 566 million square feet and has increased by nearly a third since 2015.

Knight Frank also found that UK online sales were predicted to growth by up to £67bn over the next five years, which would require 92 million square feet of space.

Amazon has opened 17 Fulfilment Centres in the UK and is due to open four more in Hinkley, Dartford, Gateshead and Swindon. Each centre is expected to create 1,300 permanent roles and additional seasonal temporary roles.