North-west England to record fastest growing UK property prices by 2023

North-west England to record fastest growing UK property prices by 2023

Despite growth in London plateauing in single figures, Savills forecasts that the north-west and its key cities will boast the strongest levels of capital appreciation in the UK over the next five years.

Summary:

  • UK property prices are set to grow by almost 15% by 2023, with the strongest growth led by property in north-west England
  • Investors in the north-west’s key locations, including Manchester, can expect uplifts in value by as much as 21.6%, while growth in London is set to stagnate in single figures during the same period
  • “Rental demand will outstrip supply” as Savills also highlights that investors will focus on the UK’s highest yielding markets

Head north for the strongest capital growth from the UK’s property market.

That’s the message from Savills, after its latest analysis of the country’s residential real estate sector suggested growth in house prices in the north-west of England will significantly exceed the national average from now until 2023.

Overall, average property values in Britain are set to rise 14.8%. However, growth in north-west England could reach as high as 21.6%, with investors in Scotland and the Midlands also set to enjoy strong levels of capital appreciation.

The report highlighted that key economies in these regions, in particular Manchester, have the “capacity to outperform their regions, attracting both local and international buyers”.

But, it’s a different story for those investors with assets in London. Growth in the UK’s capital city is forecast to slow to just 4.5% over the next five years, halted by ongoing Brexit negotiations, along with rising interest rates and increasing costs.

It follows a Savills report from October 2018 which also highlighted the slowdown in the London market over the next three years, too.

Furthermore, the global real estate agency pointed to a surge in demand for rental property in the UK, meaning investors are frequently turning to those areas of the country where yields are highest.

Lucian Cook, Head of Residential Research at Savills, commented: “Until the market sees a significant injection of build to rent stock, rental demand will outstrip supply and rents will rise. Investor buyers requiring borrowing are expected to focus on higher yielding markets and this will put further upwards pressure on rents in some of the most expensive rental locations.”

 

Investors looking to capitalise on the opportunity in Manchester should download our latest guide Manchester: An introduction to the UK’s strongest investment city.

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