As we approach the end of the year, we’ve now got a Conservative majority government in place and legislation is being passed through parliament that means Brexit looks like it’ll finally be done in 2020.
So what does this mean for the UK property market?
Prices will continue to rise
UK property has always been a resilient, robust market. The demand for new housing is increasing all the time. There’s debate about the affordability of new housing which will look to be addressed in 2020 by the governments new “help to buy” schemes, but for those who have property portfolios or have bought property, 2020 looks to be a year where the average price increases across the country as a whole.
We’ve already seen significant growth in the North West Property market in 2019, with prices rising by over 3% on average. In the face of an adverse political climate, that’s impressive given the reluctance some people have had to get involved in the economy. Fears that were ultimately unfounded only really affected London property investment, as their prices fell by 0.5% when compared with growth across most of the UK.
The North West is booming
Averages of between 1% and 2% typify the UK’s performance in the property market in 2019, with roughly the same growth forecast for 2020. However the North West property market has seen prices rise by 3.2% on average and this will only increase in 2020, given the significant redevelopment undergoing in key areas such as Manchester, Bolton and Preston. Property in those areas is significantly increasing in value and demand. With some of the lowest property costs in the UK too, rental yields are hitting levels of almost 10% in some cases, making the North west a very investable area right now.
Apartments are in high demand
At the Heaton Group we’ve diversified our offering, giving investors access to properties such as houses, HMO’s and apartments. What we have seen a huge increase in demand for is 1 and 2 bedroom apartments. As professionals seek to live within their means and with the difficulty younger generations are having with buying their property outright, they are looking to rent in city centres and suburbs. Our investors will attest to the fact that demand for apartments is significantly higher than that of houses. We will continue to work on all types of property, but we have big plans to continue with apartments.
Overall property price did see a dip but is recovering and will continue
2019 started between £295,000 and £300,000 as the average property price in the UK and finished just over £300,000. The height was in June of £310,000. This means that although there was a period of decline, we still finish 2019 as having a higher average property price than in 2018 and that is a good thing to see within this market.
With the pound seeing a resurgence now that there is more certainty, it looks like investors are going to be putting more money into the UK and the demand is getting high for 2020. We've seen this at the Heaton Group and we're ramping up operations in 2020 to meet these increased demands.
Ready to invest?
If you’re considering investment in property – then speak to us at the Heaton Group. We’ve a wealth of experience helping investors make sound decisions and with some huge projects coming up in 2020, the time has never been better to speak to our team. Please get in touch at: email@example.com