UK Property Market Continues To Prove its Robustness
Updated: Sep 19, 2018
Despite some of the negative sentiment being fulled by the mainstream media, latest figures from Rightmove.co.uk paint a more positive picture with prices across the country increasing by an average of 1.2%.
While the London property market remains challenging, the sentiment in regional areas throughout the UK are proving that there are still property hotspots where buy-to-let investors can expect healthy capital growth of over 4%.
Where is the Opportunity
Rightmove identified these areas achieving healthy levels of year on year growth:
East Midlands (4.7%), Wales (4.6%), the West Midlands (4.5%) and Yorkshire and the Humber (4%).
There have been year-on-year falls in the North East (minus 1.1%), London (minus 0.5%) and the South East (minus 0.1%).
Miles Shipside, director of Rightmove, said:
"The start of the back to school season sees a surge of sellers coming to market compared to the preceding quieter holiday period."
"Sellers aren't hanging back in coming forward to try and sell, and with average prices just 1.2% higher than a year ago, many seem to be pricing sensibly."
The London property market has had a tough 18 months however Shipside does go on to say that there are signs of recovery at the top end of the market. The number of properties above £750,000 sold in the capital is up compared to a year ago.
Shipside said:
"In London, after asking prices rose by over 50% between 2011 and their peak in 2016, there have been two years of subsequent price falls in parts of the capital."
"Now, there are signs that these price reductions in parts of London have led to an upturn in buyer activity as sentiment improves."
It's evident that there is scope for capital growth in the UK and although it may take some time before we know for certain which direction the London property market it heading, markets further north are still heavily under-supplied with ever increasing demand.