As two fast growing regions, the north-west of England and Yorkshire are predicted to see the highest increase in property prices over the next five years, with exciting new developments and investment in the pipeline.
The latest Residential Property Forecasts published by Savills have revealed that the north-west of England can expect to see property prices rise by 24% in five years. Yorkshire and the Humber followed with prices expected to increase by 21.6% in the same amount of time. Across the UK, houses prices are forecast to grow by an average of 15.3% over the next five years, which means the north-west and Yorkshire are predicted to outperform the majority of the nation.
Lucian Cook, head of residential research at Savills, stated: “We anticipate a continuation of trends seen historically, where London and the south-east underperform markets in the Midlands and north. This stage of the cycle appears to have begun in 2016, coinciding with the referendum, when London hit up against the limits of affordability.
“Markets further from the capital, such as Leeds, Liverpool, and Sheffield, were much slower to recover post financial crisis and have much greater capacity for house price growth relative to incomes, even as interest rates rise.”
Liverpool and Manchester
As a big part of the growth in the north-west, Manchester and Liverpool are both seeing impressive levels of investment, which is expected to further boost the property markets. Both cities were on Seven Capital’s list of top 10 locations to invest in UK property for 2020 as they are expected to see property prices and residential demand grow in the coming years.
With Liverpool’s city centre set to be transformed over the next 15 years with millions of square feet of new office space, the rise of new high-spec flats and the £5bn Liverpool Waters regeneration scheme, more people, jobs and investment are expected to come to the city, which is likely to bring more demand to the property market.
As Manchester’s city centre population is forecast to have an additional 100,000 more residents by 2025, it’s not surprising that many UK property experts are predicting property prices to rise further. Demand for residential properties, especially in the rental market, is expected to increase significantly, and supply is unlikely to be able to keep up.
Yorkshire and the Humber
Leeds, the powerhouse of Yorkshire, is set for more improvements and development. Improving transportation across the city and wider region, in addition to substantial regeneration in South Bank, is bringing further investment to the city and enticing more people to move to the city. This is expected to positively impact the property market and the city as a whole.
Look to the north
The report by Savills reveals locations across the north of England are expected to see a substantial increase to property prices as large amounts of regeneration, new developments and investment are coming to these regions. Savills reiterated the view that looking to the north can bring forward lucrative opportunities for buy-to-let landlords and investors.
As the north-west and Yorkshire continue to see more growth, property investment is expected to continue to thrive in these regions. If you’re looking for your next investment, BuyAssociation offers a range of property investment opportunities in the north.