All the recent property market analysis suggests a continuing trend of property growth in the North West of England, outperforming other areas of the country. Although the sector has looked a little subdued over the past couple of months, house price rises are generally remaining in line with industry predictions of a 1% growth in the current climate of uncertainty over Brexit.
The forecast from various analysis predicts an average rise of approximately 14.2% in the period 2018-2022, with an expected increase in pace in 2019 to 2.5%. The prediction is that this will be followed by an impressive 5% in 2020, then a more measured return to 2.5% for 2021 and 2022.
The North West at the forefront
London is holding back the overall growth expectations for that period, with an expected property price rise of just 7.1% over the next 5 years. This is the lowest in the country and is in sharp contrast to the growth from property developments in the North West, where an 18.1% boom is expected to take place by 2022. The biggest upsurge is expected in 2020 when the growth is set to hit a high of 6%.
The shift northwards is a general trend, with the good performance expected in the North East as well as Yorkshire, and things are looking up for Scotland as well.
Which types of properties are performing best or worst?
The property type that is showing the most growth is the detached house, as you would expect. Flats and maisonettes, on the other hand, have shown themselves to be the slowest of the growers. This may be a somewhat distorted outlook, however, because the negative annual growth in London has hit that property type the hardest. London accounts for about 25% of all the UK’s flats and maisonettes, so those property types in the North West could still be a good prospect.
A slow in the market
Transaction volumes across the country have declined in recent months. This decline is particularly pronounced in areas where affordability is low, such as London. While all regions have fallen inactivity, the northern regions and Scotland have been least affected by this. For buy-to-let investors, it is worth knowing that rental growth has fallen significantly in parts of the South that were previously thought to be safe bets. The East Midlands and the North West are showing themselves to be fantastic options for landlords and developers looking to maximise their profits.