Property price growth, especially in regions such as the North West of England, remains strong. This highlights the continuing strength of the UK’s real estate sector even during times of wider economic and political uncertainty.
Sam Mitchell, CEO of HouseSimple, advised investors not to focus their attention on London’s property market, emphasizing the fact that sales activity continues to be highest in key regions such as north-west England, home to cities such as Manchester and Liverpool.
Average property prices in the UK have risen on a monthly, quarterly and annual basis for the first time since October 2018, with growth and demand from buyers highest in regions such as north west England
“Far too much has been made of stalling price growth in the capital and the part Brexit has played, when in fact London was already showing signs of running out of steam. The danger is that stuttering house price growth in London sets the tone for the whole country,” he said.
“And the strength of regional property markets in the north, buoyed by strong first-time buyer and investor numbers, is an encouraging sign that the performance of the UK’s housing market is not determined by what’s happening within the M25.”
There are various reasons that these regions are continuing to experience strong capital growth and rental yield. However, it is generally agreed that a shortage of supply continues to be the main driver in price growth, even as the country’s Brexit deadline nears.
Russell Galley, Managing Director of Halifax, believes the growth is a result of a significant lack of supply of property across the country. That’s the message from some of the country’s leading experts and agents, who point to rising prices and a supply to demand imbalance as proof of the sector’s enduring strength.
In Summary, it is clear that although it is imperative to consider major political and economic changes, such as Brexit, there is still huge opportunity for property investors within the UK. However, detailed research and market due diligence is imperative in order to not invest in the wrong area or property specifically. Fear of Brexit and expected fluctuations in the value of the pound has decreased activity in the housing market, however, alike to post financial crisis investors in 2009, those that make a move in the market now could achieve some of the highest returns on their investment in the coming years.