Property has once again remained stable across this period and investment into the sector has stayed robust. Rental yields and capital growth have also been growing healthily. Whilst London still struggles somewhat, the regions around the Northern Powerhouse have been performing impressively. Manchester, Leeds, Sheffield and Liverpool have been shining a light for the project over the past six months and the region will be hoping to maintain that strong start to the year throughout the remaining eight months.
Here we’ll take a look at some of the big stories that have emerged this week to give investors and landlords an insight into how the market is doing and what to expect as we gear up for a, hopefully, glorious summer.
Manchester property growing faster than anywhere else
Hometrack, which tracks the house price movements of the UK, has announced that Manchester has seen the highest house price growth across the whole country.
With average house prices in the city now reaching £153,600 this translates to a percentage growth of 8.8% from 12 months ago.
In further good news for the Northern Powerhouse, the report also found that cities in the region, including Manchester and Newcastle, were growing faster than at any other time in the last 12 years.
In comparison to the capital and other surrounding areas such as Oxford and Cambridge, Northern areas are hugely outperforming them with the South East registering less than 5% growth for the first time in five years.
Quoted in the Manchester Evening News, Richard Donnell, insight director at Hometrack, said: “Buyers outside the South of England appear to be shrugging off concerns over Brexit and a squeeze on real incomes to take advantage of low mortgage rates. This is shifting the dynamics of the housing market. Cities that have been driving house price growth over the last two to three years, such as London and Cambridge, are now seeing a significant slowdown, while large regional cities continue to register robust and sustained levels of house price growth.”
Persimmon performing well
One of the country’s largest house builders, Persimmon, has reported ‘excellent’ trading for the year to date, with its new builds around regional communities such as around York, Leeds and Sheffield attracting a lot of interest in comparison to last year.
The York based company reported 6% more visitors to its show homes and development sites across the UK compared with the same stage last year. Total forward sales revenue is predicted to be £2.56bn, 11% higher than the same stage last year.
In terms of actual sales, the group said it had sold 8,928 homes to private owners with an average selling price of £229,500, an increase of 4.1% from the last 12 months. Its weekly sales rate is also reportedly running at 12% higher than this time last year.
The figures support widely held opinions that new-build and off-plan property could be in for a huge boost this year as investors and First Time Buyers (FTB’s) seek to get the best value and best capital gains for their money.
Asian investors still confident in UK property
Despite downbeat predictions and reviews from market pundits and commentators, it seems that Asian investors are still very positive about the UK property market.
Research from property investment consultancy JLL indicates that Asian investors accounted for 28% of the transactions in the UK property market in 2016, up from the 17% the year before.
The data, reported by The BBC, suggests that Asian investors are flocking to the UK more than ever before despite the uncertainty created by Brexit and the upcoming general election.
So far in 2017, property markets have been performing strongly and with inward and domestic investment continuing to flow in like never before it should remain that way.
Are you an Asian investor looking for more information on the UK housing market? Consider attending our next investment seminar in Hong Kong this June! More information and tickets can be found here.