The effects of prolonged Brexit have overshadowed gains in property markets in Scotland and Northern Ireland. However, some areas in the South East, South West, and London are experiencing a decline, and the rates are stable with no change in other areas. 

RICS said - "Uncertainties related to the deals is the biggest challenge the market is facing now, and the average stock continues to remain low, as only 42 per cent of the property is available with the estate agencies, on an average."

Overseas Investments Grow

Rightmove house price report found the average price in London was £614,000; the prices increased 3.4 per cent between January and February. The price in Westminster and Camden grew 5 per cent, and the main reason for the price gains was the attractive exchange rate. 

The overseas buyers continue to search for new assets as the property now is offered at an attractive price. The reports claim the purchases from overseas continue to increase, although the foreign home buyers contributed less before the 2016 EU referendum.

Increase In Rents and Growth of EU Buyers in London

Currently, 19 per cent of the property in Central London is held by EU buyers. However, in the latest trends, they are buying more than Middle East buyers, and a decline in investment up to 8 per cent from 15 per cent last year is 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 cities include Manchester, the 30th most expensive on the continent, and one can find Edinburg in the top 50 list. A rise in rental trends can be observed in Birmingham as well.

Rent Polarization in Some Areas

The key reason for the rent increase is the inflow of young professionals who either do not intend to stay long in the city or find property prices too high to buy a house. 

There has been a polarization in the rents as the salaries for the top jobs are not growing, and rents in the outer regions are stable, but in some areas, it is increasingly getting out of reach for Londoners.

In Manchester, the rents are escalating, and the average rent of a 3-bed accommodation in the city is £1,844 per month. In addition, the growth in population in Manchester and the relocation of several companies to the city increased demands, particularly in the prime locations.

Aberdeen's rent is declining, and Glasgow offers low-cost three-bed flats where the rent can be £1,050 a month. Edinburg's average rent per month is £1,529. Halifax reported the annual price growth was at 2.8%, which was within the expectations of the buyers but was low compared to 2015 and 2016, when the rate was 8.3 per cent, the key challenge being the difficulty in raising a deposit.It found that the average sales in January were 101,170, equivalent to the five-year average of 101,291.

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