With just under 80 days to go at the time of this article before the outcome of Brexit is finalised, much of the headlines at present are filled with speculation and opinions as to what the decision will mean for the UK’s property market. With some buyers and sellers choosing to sit tight until the political storm has passed, a savvy few are currently looking beneath the chaos and making their decisions based on the good ol’ fashioned fundamentals that really drive the property market; supply and demand.
‘The UK is more than just London’
According to Cluttons, a London-based Property Consultancy, the London market will experience ongoing turmoil and uncertainty over the next 18months or so. James Hyman, Cluttons’ Head of Residential, pins this on the challenges surrounding affordability and an outdated infrastructure in the capital. Data revealed that an average drop of around 5.7% occurred in prime-location prices during last year and that no areas whatsoever registered a price increase.
However, It’s not all doom and gloom. Savills have argued that as affordability plays a key role in market growth over the next few years, they are predicting a strong growth rate across the UK of approximately 15% between the years of 2019-2023.
Key areas of growth
In a recent analysis carried out by AI-powered investment portal One and Only Pro, the North West is considered the best place for buy-to-let investing. According to their research that considers areas and neighbourhoods that are most likely to increase in value over the near future, the top 5 locations that scored highest for price, growth and yield were all in the North West of England.
Throughout the Midlands and the North West, areas have continued to experience modest gains, even going as far as surprising many experts in Nov 2018 and growing more than predicted.
Numbers vs Noise
Despite Brexit speculation dominating the headlines, actual housing indicators suggest that there are no clear factors that will affect the immediate deterioration of UK’s housing activity. Whilst the slowdown of London’s market specifically has been quite apparent, this has mainly come as a result of weaker market fundamentals rather than political uncertainty.
According to Hometrack, six cities across the UK are currently registering growth above 6% giving more weight to the argument that Brexit has simply had a compounding effect on an already stagnating market, limited to London and just few other areas across the UK.