The first quarter of the UK residential property market registered higher inquiries in the investment market, where the pace appeared to grow, and also, flatten in some regions. Supply of houses continues to reduce and some sellers are waiting for prices to increase and are confident to see huge capital gains over a year.
As per the RICS report survey Q1 2018(released in June 2018), the national figures in the UK, office prices are expected to increase in all parts of the country and in London, prices are expected to escalate in the next quarter. Post-Brexit, the property rates are expected to increase and fund managers are spending on the UK property as they see it a greater opportunity to attract foreign investors from the Middle East, Americas, Europe, and Australia.
In the recent development, the Abu Dhabi Islamic Bank, ADIB, is buying properties in UK real estate in the Northern regions (mostly in between Liverpool, Leeds, and Manchester) – the Lateral House, from a German trust. For acquisition, the bank is expected to pay 118.2 million AED.
In London, the scarcity of official properties and high-value stock, raise the risk of higher rents and many are aware of the increase in rents in the past six months. Lack of high-quality stock in London is the main reason for the rise in the price of prime properties. Many companies are trying to relocate to other less expensive regions in the UK, but the culture of London seems to compel buyers to stay back.
People are adopting digital methods for buying properties to reach and select some of the best. Further, the demand for foreign investment is high in London, as taxation schemes are proposed by the government, wherefrom April 2020; the UK properties owned by non-residents will be liable for the UK corporation tax. And changes are also being made in taxation related to property sale and the UK trading profits.
The number of property sold in the month of May was higher as compared to previous months, as the Bank of England held interest rates at the current level, while, the rates are expected to increase in the coming months due to an increase in dollar prices and low sterling exchange price.
The UK real estate - Regional demand
The North East and the North West office property demand are high. Local authorities are trying to meet the strong housing demands in some of these regions, while, in Scotland market is extremely active and inquiries of retailers are increasing. The demand for second-hand premises is higher in the South East.
In the key cities, such as Manchester leasing has increased extensively. In the East Midlands, the University of Northampton is expected to open in autumn 2018, which will be joined by approx. 14000 full-time students. This increase in demand will raise the value of existing stock and continue to increase the level of investment.
In the Eastern regions, the demand for occupational leasehold –office space is increasing in 2018, despite Brexit volatility.
To know more about some of the latest updates in the UK property, visit - Hamilton International Estates (www.hamiltoninternationalestates.com).