UK Property Market

The latest figures find the property in the north Lancaster, Blackpool, and Durham are the fastest growing. The number of homes sold in the year increased by 17 per cent as per Land Registry data released by Housesimple.

The study covers more than 60 cities in the UK, where at least seven regions showed the biggest growth out of 10 in the second quarter. For example, the sale of property in Lancaster was 16.6 per cent, and Durham sales increased by 15.4 per cent.

As per the seasonal trends, the property price drops in November each year. But, this year, the drop was fueled by uncertainty in political-economic situations that decreased the asking price. However, there exists a big difference in prices in different regions.

Swindon was one of the regions from the South, which was in the top ten growing cities with a growth rate of 11.8 per cent. Northern towns continue to grow, and official figures claim the property in the North East is yet to get back to pre-economic downturn rates.

Undersupply and Rents

Brexit uncertainty is hurting real estate markets, and the buyers are worried over never-ending negotiations and uncertainty in the economic outlook.

Although the Irish border remained firm during the Brexit negotiation phase, the property markets are growing in the North, where the strongest growth was seen in Scotland and Northern Ireland. The sales markets are especially strong in these regions, with a strong appetite for investment.

Sales were stable in October, but rents increased despite a slowdown in properties while the tenant demand continued to grow. Demand has outgrown supply as many landlords are selling to avoid buy-to-let taxes.

Research by Reapit states that one in ten landlords actively seek options to sell properties. In the last year, rental demand grew 13.3 per cent, and the rental stock was low by 6.9 per cent. 

Although the rents are escalating slowly, supply-side pressure can lead to rising rents. The properties in Scottish cities Glasgow and Edinburg are the fastest-selling, where it takes 40 to 50 days to get a shopper. Glasgow remains one of the fastest and most competitive in terms of growth rate.

The property in these markets is considered highly affordable compared to the rest of the UK, which led to strong growth in population that further increased the demand of homes, leading to undersupply of homes.

Foreign Investment

Some overseas investors are seeking opportunities in the current market where investors from Dubai find UK property weakness and sterling decline as an opportunity, especially when their property is slowing down.

Many Dubai-based clients are interested in buying at desirable destinations in London, and this has been a good time to get the best rates for these properties.

Recent research by Jones Lang LaSalle found at least 50 per cent of the UK residential property investment is coming overseas. UK property investment continues to grow; globally, buyers are also spending on assets in Hong Kong and China.

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