Prolonged Brexit has been overshadowing the gains of property markets where Scotland and Northern Ireland property continue to gain but regions in South East, South West and London are facing negative price feedback, and the rates are flat with no change in other parts. More than three quarters, about 77 percent, by RICS said: “uncertainties related to the deals is the biggest challenge the market is facing now, where the average stock continues to remain low, with only 42 percent of the property available with the estate agencies, on an average.”
Rightmove house price report found the average price in London was at £614,000 where prices increased 3.4 percent between January and February. The price in Westminster and Camden grew 5 percent, where the main reason for the improvement in price was the attractive exchange rate. The overseas buyers are continuing their investment as the property are offered at an attractive price. The reports claim the purchases from overseas continue to increase, where foreign home buyers were investing just 40 percent before the 2016 EU referendum.
Increase in rents and growth of EU buyers in London
Currently, 19 percent of the property in Central London is held by EU buyers, and in the latest trends, they are buying more than Middle East buyers where a decline in investment up to 8 percent from 15 percent in last year was reported. The reason is the high rents in London, where the average rent stands at £5,187 per month for a 3-bed home (ECA International data).
Other most expensive cities include Manchester which is 30th most expensive in the continent, and Edinburg can be found in the top 50 list. A rise in rental trends can be observed in Birmingham as well.
Rent polarization in some areas
The key reasons for the increase in rents are the inflow of young professionals who either do not intend to stay long in the city or they find property prices unachievable. There has been a polarization in the rents where salaries for top jobs are not growing, and rents in the outer regions are stable but in some areas, it is increasingly getting out of the reach for the Londoners.
In Manchester, the rents are escalating, where the average rent of a 3-bed accommodation in the city is at £1,844 per month. The growth in population in Manchester and relocation of a number of companies to the city increased demands, particularly, in the prime locations.
The demand and rental cost in Aberdeen is declining, and Glasgow offers low-cost three-bed flats where the rent can be £1,050 a month. Edinburg average rent per month is at £1,529.
Halifax reported the annual prime growth was at 2.8, which was within the expectations but was low in comparison to 2015 and 2016, when the rate was 8.3 percent, the key challenge being the difficulty in raising a deposit. It found the average sales in January was 101,170 that were equivalent to the five year average of 101,291.
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