The first quarter of the UK residential property market registered higher enquiries in the investment market, where the pace appeared to grow and flatten in some regions. The supply of houses continues to reduce, and some sellers are waiting for prices to increase and are confident of seeing 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 London, and prices are expected to escalate in the next quarter.

Post-Brexit, the property rates are expected to increase, and fund managers are spending on UK property as they see it as 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. 

London property

In London, the scarcity of official properties and high-value stock raises the risk of higher rents, and many are aware of the increase in rents in the past six months.

The lack of high-quality stock in London is the main reason for the price of prime properties to rise. Many companies are trying to relocate to less expensive regions in the UK, but London's culture seems to compel buyers to stay back.

People are adopting digital methods for buying properties to reach and select some of the best offers. Further, the demand for foreign investment is high in London, and the government plans to impose new taxation schemes to regulate the market.

From 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 sales and the UK trading profits.

The number of properties sold in May was higher than in previous months, as the Bank of England held interest rates at the current level, while the rates are expected to increase in 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, the market is extremely active, and retailers are increasing. The demand for second-hand premises is higher in the South East. 

In leading trade 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.  

The increase in demand will raise the value of existing stock and continue to expand 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).