The current market offers greater opportunities for the first time buyers where the year-over-year price increased in the cities such as Manchester and Liverpool. A report by Knight Frank states the rise in corporate innovation lab, inflow of tech titans, collaboration and service sector growth has been able to offer support for the growth of these cities. Knight Frank head at Manchester, David Porter said the latest changes in the property market in the city is based on the concept of real estate as a business-service and also, as a product. The report on the city says it contributed £3.2 billion to the UK economy and will be able to provide more than 30,000 jobs in future along with commercial development across at least 10 sites that will create office space of 1.6 m sq feet by 2020.
Tech-savvy occupiers such as Amazon is expected to create 600 jobs in the city centre, and the new trends of coworking and collaboration in technology sectors will drive property growth in future markets.
The average property price in Liverpool is £120,100, one of the lowest in the country, with a huge scope of growth in the future. Leeds growth rate was 5.4 percent per annum where the average property rate was at £166,100 in the city.
Hometrack reports claim growth in some of the affordable cities led to the increase in annual growth rate in the UK housing markets.
One of the fastest-growing markets in Liverpool where the annual growth rate was 7.5 percent and it continues to be one of the best in buy to let capital of the country.
Manchester growth rate was 6.8 percent and its average price stands at £168,300.
Variations in property rates and types
The reports of rapid depreciation in home prices and lowering asking rates continues to vary from one region to others, and it also depends on the type of property. The average difference in the prices of flats and houses across different regions can be up to 50 percent.
The difference grew by at least 24.5 percent in the last 5 years. E.g. in Stevenage, the average difference in the price of the detached house and flat can be approximately 200 percent at £553,697 to £186,422.
Some housing markets are highly polarized in this way where the price gap between flats and houses is more than 100 percent.
New regulations for short term lettings will become effective since next June, where the estimated leasehold residential property in 2016-2017 constitute 18 percent of the total stocks as per MHCLG.
The fear of Brexit has been one of the reasons for a slowdown as the speculation remains high related to UK withdrawal from EU, and the impact on various sectors – including property markets. The recent statistics by RICS state the number of property for sales and buy-to-let reduced. Some property buyers preparing to buy next year as they believe the market may readjust and grow without restrictions of EU regulations.
To know more about UK properties, click Hamilton International Estates (www.hamiltoninternationalestates.com).