The third UK-lockdown in response to the coronavirus pandemic has had a huge impact on the country’s housing market. And more people are looking to buy an investment property. Would-be sellers are delaying their listings while demand has continued to grow. Leading to a spike in house prices across the country.
The perfect storm
In the first few months of 2021, the number of new houses coming to market is down 12% compared to the same period last year. Analysis from Zoopla has also found that buyer demand is growing even faster than at the beginning of 2020.
The pandemic has encouraged people to assess their living needs and look for properties that better suit their lifestyle. As well as owner-occupiers, more and more people are now buying an investment property to help give them financial security during this unprecedented time.
Low new listings and high buyer demand is already creating the perfect storm for the property market. In fact, it has already led to impressive house price growth in some parts of the UK – especially the North West, North East, and Yorkshire & the Humber.
Decade-long house price growth
Across the UK, house prices have reached an almost four year high at 4.3% growth. However, it is the northern English regions that are seeing the biggest benefit from the third lockdown. This increase isn’t forecasted to slow any time soon, so investors should look to these areas if thinking about buying an investment property in the near future.
The North West, the North East and Yorkshire & the Humber have all witnessed the highest house price increases in the UK. At between 4% and 5.5%, these three regions have undergone the largest house price growth in over a decade.
Two cities in particular – Liverpool and Manchester – are faring particularly well. Liverpool comes out on top with 6.3% higher prices than in 2020. This is the city’s largest growth in 15 years. Manchester follows close behind at a 6% increase on last year. Both cities are very popular with those buying investment property, helping to boost both markets.
Continued market growth
Richard Donnell, Research & Insight Director at Zoopla expects the positive market trend to continue. He says, “The strength of the market in 2020 has eroded the available number of homes for sale and this will mean continued upward pressure on house prices in the short term. The most affordable parts of the UK are recording the highest rate of price growth for 10 years up to 5.4% a year.”
The ongoing coronavirus pandemic could mean sellers stay cautious about selling and buyers remain keen to improve their living situations or buy an investment property. If this does happen, house prices will continue to rise higher and higher.
If you’d like to find out more about the northern property market or buying an investment property at this crucial moment, contact the property investment experts at North Property Group today.