UK Buy-to-let

Impressive performance

Annual house price growth in the UK has hit over 10% for the last two years – reaching 10.8% in 2021 and 10.3% in 2022 according to the UK House Prices Index for November 2022. This growth was aided by government incentives such as the stamp duty holiday and the introduction of 5% mortgages, with both incentives resulting in a huge increase in activity in the market. However, even following the end of the stamp duty holiday, the UK property market has continued to flourish and looks set to continue in a similar vein. 

Exciting forecast

The UK buy-to-let market’s impressive performance is showing no signs of slowing down any time soon according to JLL. In their UK Residential Forecasts 2023 – 2027, they predict that house prices are set to increase by an average of 1.7% per annum, culminating in an 8.9% increase in the aforementioned time period. In the same report, JLL also predicted that rents in the UK are set to increase by 4% in 2023, followed by a cumulative growth of 15.9% over the next 5 years.  

Northern hotspots

Despite the economic wealth throughout the UK being heavily skewed towards those in Southern regions surrounding the capital for some time now, Northern cities continue to prove their economic worth and show exactly why investors are continuing to move away from the capital in favour of cities like Manchester, Liverpool, Preston and Sheffield – with house prices and rent in these Northern locations set to continue to grow for the foreseeable future.