2019 is set to see huge regional differences on the property front. There is a general sense of uncertainty in the air after Brexit sent shockwaves through the nation, causing hesitance around the property industry. The South has been particularly affected, whereas the North, on the whole, has stood resilient and it is still showing signs of growth over the forthcoming year. As the demand for property is on the rise in the UK, this has led to a severe undersupply of suitable housing.
House prices look set to rise, but only by a small figure of 1% to 3% across the whole of the UK. Other areas of the country are predicted to far surpass these numbers, creating stark regional differences that are becoming more apparent.
Purpose built student accommodation remains a prosperous form of investment as the demand for student housing across the UK is reaching its highest recorded level. Universities only provide 16% of accommodation therefore private developers have taken the opportunity to cater for the strong demand across many university towns in the UK. Students and graduates are one of the main demographics that have the power to change and evolve the market, as they have a significant part to play in the property industry. Despite hesitancy within the property industry, it still remains a resilient and top performing asset that is set to produce robust returns over the forthcoming years.
One of the most notable trends to watch in 2019 will be the dramatic rise of renting. This comes as certain areas across the UK, particularly in the South, are becoming more unaffordable as prices are rising so significantly it is alienating people from buying, therefore people are turning to renting to obtain a property for themselves.
The number of people living in rented accommodation is showing no sign of slowing down, as stepping on to the property ladder as a first-time buyer is becoming more unachievable and unrealistic. The Royal Institution of Chartered Surveyor predicted that UK rents would increase by 15% by 2023 due to a reduction in new rental properties on the market, leaving less choice for the incessant numbers wishing to rent.
Demand is stronger than ever, which creates more of a challenge for those seeking rental properties and why supply sits so few. The number of new builds is attempting to catch up from the strong numbers requiring housing, however, they are still falling short as demand far exceeds the supply available. Lack of supply is great news for investors considering buy to let properties like those available with RW Invest, as the dramatic fall in available property has strengthened the opportunity to capitalise on the saturated market as rents have been pushed up as a result.
Another key trend is the rise of city centre living, as people are flocking from the suburbs to take advantage of the amenities available in bustling centres. Key cities like Manchester and Liverpool are experiencing masses of regeneration. Their ambitious projects have pumped new investment into the area with determined projects due for completion in 2019.
House prices are rising as well as rental costs, and although this growth has slightly decreased in 2018, house prices are set to rise steadily over the forthcoming year. As the UK settles on an agreement surrounding Brexit, house prices may actually increase by 15%, which shows a more than promising market for buy to let investors.
Regional cities in the North are continuing to show staggering house price growth that is well above the UK’s average. With Liverpool’s property market valued at over £1 billion, the city is enticing investors to its below market value prices and robust rental yields, a perfect opportunity to secure some of the best returns.