With the current political and economic uncertainty, it can be difficult for property investors to know what the future holds for the housing market. To try and help you look into the future, we’ve put together the top 5 predictions for Yorkshire’s property market in 2019 by the region’s property experts.
1. The lettings market will continue to grow
The beginning of the year has already seen strong rental price growth in Yorkshire. With Leeds boasting the fastest-growing rental prices for Q1. Andrew Wells of Allsop predicts this will only increase and that the buy-to-let market is one of the exceptions to Brexit uncertainty: “There are good rental returns to be had from a very active lettings market, so if investors can find stock available,  could be a good time to buy.
“Those who have stuck with [buy-to-let] know that there are plenty of tenants around and rental growth is happening. Residential investment still beats the stock market, in my view, over the medium to long term.”
2. People will leave the south for the north
The trend for people to move away to the north will continue to increase. Due to people being turned away by expensive living costs and a worse quality of life. More and more young professionals and families will head towards the UK’s major northern cities. This will have a positive impact on the house and rental prices in this region.
As Edward Hartshorne from Blenkin and Co. says, “The north of England is set to enjoy a small degree of price growth entirely lacking in the south and the quality end of the market will be the greatest beneficiary. We have eager buyers who are moving up from London wanting to live within easy reach of good mainline rail connections.”
Glynis Frew of Hunters Property Group goes on to say, “The Northern Powerhouse will continue to drive large-scale commercial and infrastructure investment to the county. Especially to the likes of Leeds and Sheffield, and that will have a positive knock-on effect on the residential market.”
3. Demand for city centre living will increase further
Predictions for Yorkshire’s property market show that a trend for city centre living is growing. And as more people move northwards the demand for residential properties in these areas will only increase.
“The demand for city/town living is particularly evident with buyers seeking the convenience of having shops, restaurants and other amenities”. Explains Tony Wright from Carter Jonas. “A particular feature is the noticeable shortage of new stock coming onto the market resulting in pent up demand, with motivated buyers waiting to pounce on the right opportunity.”
4. Major new developments will change the market
This huge increase in demand has led to a wealth of new northern developments. The developments are bringing new innovations to the region’s property market. This is especially evident in the Northern Powerhouse cities of Manchester, Liverpool, and now Leeds.
According to Jonathan Morgan from Morgans, “2019 will bring a sea-change in the rate of delivery of new housing for rent and for sale. CEG Southbank, SOYO, The Climate Innovation District, X1 South Bank, Leodis Square, the former Yorkshire Post building, Mustard Wharf, Marsh Lane Goods Yard, St Albans Square, Victoria Embankment, City One and Kirkstall Riverside are all substantial residential or mixed use schemes which are either now on site or fully committed.
“While Manchester and Liverpool have drawn a great deal of attention and new investment in recent years. Both from UK funds and overseas investors. There is a definite sense that Leeds is the next stop on the line.”
5. Yorkshire will fare better than the rest of the UK
While the rest of the country suffers amid Brexit uncertainty, predictions for Yorkshire’s property market is that Yorkshire will be resilient. Simon Blyth of Simon Blyth estate agency states, “I think Yorkshire folk generally have a positive attitude and I think Brexit will come and go with relative ease as this region has a diverse economy.”
This is echoed by other commentators when it comes to house prices and demand. Justin Dugdale of Yorkshire’s Finest forecasts overall house price growth in the region of between 3% and 5%. Patrick McCutcheon from Dacre, Son and Hartley agrees: “If demand sees unfettered confidence, then we would expect strong price growth. Especially in the £300,000 and £600,000 price bracket.”
Tony Wright also predicts an active Yorkshire market throughout 2019: “Interest rates [will] remain low and there is an underlying confidence fuelled by a good number of buyers who are ready, willing and able to proceed.”
Andrew Wells, partner at Allsop highlights a few areas to watch in the region. “We see Harrogate, Ilkley and York continuing to see price growth. I also tip Burley Park and Headingley in Leeds to do well. These areas reduce their reliance on students and create more balanced and attractive communities.”
If you’re interested in investing in a northern property, contact North Property Group today.