Rising Rents

As per the real estate managers, the property markets in the UK may rebound once Brexit is resolved. The equity investors are seeking alternatives in real estate where the asset class remains unaffected by the turmoil in the political situations.

The buyers at home and overseas seek clarity in the sector to finalise their investment. For overseas buyers, the UK provides safe investment in conditions when other parts of the world are undergoing immense changes. 

The decline in currency value makes the current valuation attractive. Prime Minister Theresa May's extension to the Brexit deadline remains a challenge, but the market is expected to pick up in the post-Brexit phase.

Before recovery, the stock markets may undergo a correction where there will be some selling pressures, and many investors may seek alternative opportunities in the property sector.

• London is the hub for financial services, but investors see new places.

• BBC set up its new camp in Salford, and PwC started its office in Leeds.

• The population of Manchester grew twofold in the last decade due to the increase in public sector investments. 

• Many such regional cities are growing and may become the financial hub in the future, where the firms can get highly qualified workers to help them grow.

• These cities offer a better quality of life, and the governments may introduce policies to improve living conditions by promoting growth.

Mortgage Requests Increase

The housing market has been hit by unpredictability. Nevertheless, the market figures show the number of mortgage requests by first-time buyers is almost close to the pre-financial crisis levels, where the investment by first-time buyers was sustained by improved labour market conditions, rising employment, and growth in earnings.

The factors supporting the increase in requests for the mortgage include the low-interest rate and attractive valuation. For the first-time buyer raising a deposit has been the biggest hurdle but the increase in average earnings and low rates promote affordability.

The reports on housing market activities found the number of transactions where the number of approved mortgages and other relative data remained stable, indicating the sentiments are improving. However, the data found the new buyer inquiries declined, and the number of properties on sale is diminishing. 

The online agency Yopa suggests that despite the current situation, there is no sign of sustained decline in the average home price, which is encouraging.

Rents Increasing in the Lothian Region

The rise in rents and housing costs are soaring even in the regional cities where, between 2010 and 2018, the average private rent for a one-bedroom increased 39.8 per cent in the Lothian region (including Edinburg).

The rent for two-bedroom grew 42.3 per cent and three–bedrooms 46.6 per cent – as per the Scottish government report, supporting investments. 

The average wages fell in comparison to inflation during this time. They created a housing shortage where the councils estimate there are 240,000 properties in Edinburg, and only 12,000 are listed on Airbnb.

To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).