Recent data from Zoopla shows that the UK housing market continues to soar following the end of lockdown restrictions. Regions in the north are seeing the biggest increases, with Nottingham, Manchester and Leeds property investment placing in the top three.
Surge in demand- Leeds property investment
The temporary halt to the housing market during lockdown, as well as the government’s stamp duty holiday, is still helping to generate huge demand from buyers. The Zoopla figures show that between September 2019 and 2020, house price rose by 2.6%. This is up on the 1% increase from the same period the previous year.
Lockdown also caused people to re-evaluate their requirements from a property. Cheaper housing away from the capital is in highest demand; with people looking for more inside and outdoor space and better locations. These are all factors those interested in making a Manchester, Nottingham, or Leeds property investment should bear in mind when choosing a property.
Biggest rises in the north
Northern cities have undergone the biggest house price rises since last September. Nottingham comes out on top, where average sales values have increased by 4.7%.
In second place is Manchester with average price growth of 4.2%, and Leicester follows in third with a rise of 3.9%.
Northern regions have been strengthening in recent years thanks to fast-developing economies and booming jobs markets. Many businesses and people have relocated to these key northern cities, helping boost local property markets and investment.
With house prices in these areas growing far beyond the UK average, a Manchester, Nottingham, or Leeds property investment would be well-placed to take advantage of good capital returns.
Fewer first-time buyers
The Zoopla report also highlighted the fact that the proportion of first-time buyers has fallen, meaning the increased buyer demand is coming from home movers and investors. This is likely due to the financial restrictions. As well as higher deposits now required due to the economic situation brought about by the pandemic.
The knock-on effect is that more people will continue to rent their homes. Buy-to-let landlords keen on increasing their portfolio should therefore look to cities with high rental yields. For example, a property investment in Leeds, Manchester or Liverpool would result in good average yields of 4.6%, 4.8%, and 5.6% respectively.
Looking to the future
According to Zoopla, price rises won’t slow over the coming months. High buyer demand will keep the market “unseasonably strong”. The only risk to that, they say, is that house prices could begin to level off; should we begin to see a rapid increase in new housing supply.
Contact us – Leeds property investment
To find out more about making a Manchester, Nottingham, or Leeds property investment, contact North Property Group today.