A recent report by property experts JLL shows that house prices in the regions away from London are set to grow dramatically over the next five years. Thereby, re-balancing the economy away from the capital as the ‘Living With 2020 Vision Report’ states that greater economic and political certainty will fuel price growth in the UK property market as house-builders refocus development pipelines.
Property Market to Re-Balance as an Increase in Sales Prices is Expected
A major rise in city-centre shared rental properties is also expected; as 2.5 million extra people will live in the UK’s urban areas by 2024. Rising to 5 million over the next 5 years.
The highest sales price and rental growth in the UK by the end of 2024 will be in Manchester. With a rise of 17.1% and 16.5% respectively. This is much higher than the UK average sales price increase of 14.8%.
Manchester’s seemingly unstoppable growth is being fuelled by a rapidly improving economy and appeal as a great city in which to live. Manchester continues to pull large organisations like the BBC away from London to relocate in the region.
Two other Northern cities undergoing huge levels of investment, development and economic expansion are Leeds and Liverpool. Both of these cities continue to see an increase in their numbers of owner-occupiers, investors, renters and developers. The Leeds sales price is expected to grow by 13.7% by 2024 with Liverpool close behind at 13.1% sales price growth.
Rental income is also on the rise in all major UK cities. Rental increases of 16.5% is set to be seen in Manchester over the next five years. Additionally, with 14.8% growth in Liverpool and 14.2% in Leeds.
Northern Cities are Fantastic Prospects for Buy-to-Let Investment
In order to cope with demand over the next 10 years, the JLL report highlights the number of houses that will need to be built across the UK. Manchester, for example, will need an additional 2,500 homes annually compared with 1,150 now.
Nick Whitten, Director of UK Living Research and Strategy at JLL, said; “2020 is a milestone year for the UK’s regional cities and getting the property sector back on track.
“JLL forecast regional cities will be able to retain their talent and bridge the gap they currently have with London; if adaptations are made to their property hubs.
“These cities are currently on track for success, with many developing more modern living approaches. If this can be coupled with a balanced life-work package a shift in the industry from a London-centric property hub can, and should, be expected.”
Oli Banks, Managing Director at North Property Group agrees. “For years now the property market in London has stagnated while other major UK cities have undergone huge improvements; especially those here in the North. Spurred on by major investment, development, and a better work-life balance; more and more people are leaving the capital for places like Leeds.
“This has led to huge tenant demand in major Northern cities, pushing up rental yields and sales prices. Cities like Manchester, Liverpool and Leeds are fantastic prospects for buy-to-let investors. We would encourage all property investors to consider them.”
So to find out more about investing in the North, contact North Property Group today.