The UK’s fastest growing housing markets

27th November 2020

By Will Leyland

It feels like sweet relief and much more satisfying to be able to start turning our attention back to more normal subject matter, such as house prices and yields, rather than global health concerns or Brexit negotiations.

That being said, this can’t be delivered outside of the context of the events of this year, and given the extremely challenging economic environment in which we’re likely to be operating in for at least another 3-6 months, it’s always worth mentioning just how well property has performed within it.

Given that entire industries have been sitting on the brink at various points throughout the year, and the roller coaster volatility of stocks, shares and bonds, it’s still quite an incredible thing to consider that for the majority of 2020 house prices and yields have continued to grow.

There were times when prices appeared to settle, but unlike almost every other sector and industry, prices never decreased or shrank, despite some dire warnings early on in the pandemic.

With Christmas now fast approaching there are strong indicators that the UK economy is on the mend, with the third quarter of the year breaking records for GDP growth, and Christmas spending fueling something of a recovery in retail.

With good vaccine news continuing to filter through there are now genuine expectations that a vaccine rollout will begin before Christmas, putting us on the road back to normality by Spring or Summer time, which would be very welcome news indeed.

Areas of growth

So now to take a look at which areas of the UK are seeing the biggest growth following an unprecedented year across the world.

Newly published ONS and Land Registry figures give us a more comprehensive view of the UK picture, along with the recently published data from mortgage lenders such as Halifax, which monitor demand.

According to a report by the BBC, “Overall, the UK increase in house prices was 4.7% over the year to September, up from 3% in August, with the average home valued at £245,000. While property prices may not have risen as fast in London, the city still has the highest average house price, at £496,000. For tenants of private landlords, rents in the UK rose by an average of 1.4% in the year to October, the ONS said.”

The areas that saw the biggest growth were the South West, with a 6.5% increase over the year, the North West with 6%, Yorkshire and the Humber with 5.5%, and the East Midlands with 5% growth. London saw growth of just over 4%.

These figures represent a staggering rise in prices with demand surging during these unprecedented times. These are some of the strongest performances in years, especially for areas such as the North West and Yorkshire, where investors have been concentrating their efforts for some time.

For Buy-to-Let landlords investing in the area, the rise in rental demand will be particularly encouraging, in addition to the price increase. Coupled these together will mean greater yields for property investors.

With many across Europe and the world now looking closely at the UK property market as a reliable place to invest their money in uncertain times, it would certainly seem that the time is now to look to expand.

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The UK’s fastest growing housing markets

27 November 2020

It feels like sweet relief and much more satisfying to be able to start turning our attention back to more normal subject matter, such as house prices and yields, rather than global health concerns or Brexit negotiations.

That being said, this can’t be delivered outside of the context of the events of this year, and given the extremely challenging economic environment in which we’re likely to be operating in for at least another 3-6 months, it’s always worth mentioning just how well property has performed within it.

Given that entire industries have been sitting on the brink at various points throughout the year, and the roller coaster volatility of stocks, shares and bonds, it’s still quite an incredible thing to consider that for the majority of 2020 house prices and yields have continued to grow.

There were times when prices appeared to settle, but unlike almost every other sector and industry, prices never decreased or shrank, despite some dire warnings early on in the pandemic.

With Christmas now fast approaching there are strong indicators that the UK economy is on the mend, with the third quarter of the year breaking records for GDP growth, and Christmas spending fueling something of a recovery in retail.

With good vaccine news continuing to filter through there are now genuine expectations that a vaccine rollout will begin before Christmas, putting us on the road back to normality by Spring or Summer time, which would be very welcome news indeed.

Areas of growth

So now to take a look at which areas of the UK are seeing the biggest growth following an unprecedented year across the world.

Newly published ONS and Land Registry figures give us a more comprehensive view of the UK picture, along with the recently published data from mortgage lenders such as Halifax, which monitor demand.

According to a report by the BBC, “Overall, the UK increase in house prices was 4.7% over the year to September, up from 3% in August, with the average home valued at £245,000. While property prices may not have risen as fast in London, the city still has the highest average house price, at £496,000. For tenants of private landlords, rents in the UK rose by an average of 1.4% in the year to October, the ONS said.”

The areas that saw the biggest growth were the South West, with a 6.5% increase over the year, the North West with 6%, Yorkshire and the Humber with 5.5%, and the East Midlands with 5% growth. London saw growth of just over 4%.

These figures represent a staggering rise in prices with demand surging during these unprecedented times. These are some of the strongest performances in years, especially for areas such as the North West and Yorkshire, where investors have been concentrating their efforts for some time.

For Buy-to-Let landlords investing in the area, the rise in rental demand will be particularly encouraging, in addition to the price increase. Coupled these together will mean greater yields for property investors.

With many across Europe and the world now looking closely at the UK property market as a reliable place to invest their money in uncertain times, it would certainly seem that the time is now to look to expand.

Will Leyland

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