North West Property: Still Leading UK Property Growth?
This article was updated on Mon 12 Feb 2024
With economic headwinds making many other investment strategies relatively risky, the UK property investment market has been a source of focus for many looking to protect and grow their wealth.
Inflation, the cost of living and borrowing costs are just three examples of tougher conditions for investors post-pandemic. Despite the apparent easing of the worst of them, there are other reasons that people are turning to property.
Despite a slowing of price growth in some of the prominent investment hotspots, new data has now given us some indication of where the strongest growth is being experienced across the UK right now. North West property is outperforming the majority of the UK. Let’s take a look at the breakdown.
Investing in North West Property
The latest from Rightmove sheds some more light on the most recent market trends. The North West’s property sector continues to outshine much of the UK. The UK’s average asking price climbs to £359.748, marking a 1.3% increase from the previous month. The property portal report indicates a broader context that is also illuminating. Although this year is witnessing a -0.7% dip in house prices when measuring on an annual basis, UK house prices still stand 16.93% higher than they were before the pandemic took hold in October 2019. It’s remarkable to say the least when considering the overall economic environment between those 2 points and the issues rising in between.
Rightmove’s report also underscore a critical and observable change in the market that’s significant for buyers and investors. The housing market, once identifiable by a frenetic post-pandemic surge – finding its characteristics in stamp duty cuts and pent-up demand – has now found a more stable footing, fulfilling our predictions.
Exceeding Pre-pandemic Levels
The level of sales being agreed has increased by 20% since the start of 2023. What’s worth noting however, is a continuing interest from buyers in properties with reasonable prices. The report reveals that the number of buyer inquiries for each property listed exceeds pre-pandemic levels by 8%. This demonstrates that despite challenges like high interest rates and affordability barriers, there is a persistent demand in the market.
The North West, in particular, emerges as a standout performer in the UK housing market. When examining both monthly and annual property price increases, this region consistently leads the pack.
According to the Rightmove data, the average asking price for properties in the North West rose by 0.9% from September to October. This surpasses the UK’s 0.5% average. When observing year-on-year changes, property values in the region have increased by a substantial 1.8%. This outperforms the national average.
Affordability for Investors
Not only does the North West excel in terms of price growth, but it also offers affordability in comparison to other parts of the country. The average price for a property in this region now stands at £256,275. This makes it an attractive option for homebuyers and investors alike. The North West presents an alluring opportunity for those seeking cost-effective homes with the potential for substantial capital appreciation.
It’s worth noting that this also accompanies strong rental growth and strong demand from renters which is driving up yields. Yields, one of the ultimate measures of profitability when it comes to property investment, are also driven up by rents increasing quicker, relative to property prices.
If you’re interested in UK property investment or North West property investment then why not take a look at the opportunities we have available for you?
