I was at the Derby Property Summit yesterday – an impressive showcase for Derby held at the home of (Championship) football – Pride Park. The great and the good were gathered and there was no mention of Bobby Zamora – or his being given freedom of the City (Nottingham). I digress.

We have heard the story before that the Soth-East is over-heating and the regions have it all to play for. I’m not convinced that it’s quite as simple as that; London and the South East have a different dynamic – associated with a Capital city sat firmly on the world stage. The market doesn’t operate in quite the same way as the regions – the inward foreign investment makes sure of that.

One of the questions addressed by the panel was whether the private rented sector was coming of age outside the M25. This translates into – “will the major Institutions invest in our regional cities?”. It’s a fair question. The answer is complex.

5 years ago there was little or no institutional investment in residential property to speak of – let alone that investment being outside the M25. But times have changed and there is Institutional investment now – the money chases money and return. Residential property has come of age and now can provide a reasonable return. It does need quantity to spread risk. It was suggested that you need 800-1200 units to spread risk and make the investment worthwhile.

But the really interesting comment was that the regional cities need to get visibility with the Institutions – they need to sell themselves. And herein lies the rub – this is not easy. It is quite difficult to get the men in suits out of their London offices. It was a bit harsh to suggest that the fund managers are lazy. They’re not – they’re busy and a trip up here takes a day…

It does show how important it is for our cities to go to London. Both Nottingham and Derby do this – and they need to keep on doing it!