Northern House Price and Rental Growth Predictions Over the Next 5 Years

Northern Properties

The northern regions in the UK appear to move independently of the affordability issues in London. However, the divide is expected to reverse in the coming five years where it is believed the rise in UK house price, on average, will be 14.8 per cent in the country, even as there will remain huge variations between North West and South East. 

The North-West price will increase by 21.6 per cent, and the price in South East will increase by 9.3 per cent -- as per Savills data.

Investment in commercial property continues to rise in the UK, where property experts at Cass Business School believe the commercial market is on the verge of a boom. Its report finds the lending towards commercial property increased by 27 per cent in the first half of the year to £22.5 billion.  

London Market, Rent and Affordability

Hometrack found that 56 per cent of the postcodes depict month-on-month gains in London, although the whole city of London is set on a decline of 0.4 per cent yearly. The reports find the fall in prices is concentrated in the inner regions of London home prices, but outer London remains affordable.

The report by Hometrack found the fastest price growth was in Liverpool at 6.9 per cent, Birmingham at 6.5 per cent, Leicester at 6.4 per cent and Manchester at 6.2 per cent. The growth in the top five cities was at the rate of two times the growth in average wages. Rents are expected to increase by 13.7 per cent across regions and 15.9 per cent in London during this time.

In commercial properties, affordability has been a major problem where the savings for deposits is still one of the biggest issues for the buyers and challenges remain the same. However, Savills predicts that house prices will increase in the next five years with the increase in wages. 

London may get growth of 4.5 per cent and regions such as Wales, Scotland property and housing market Scotland will rise by more than 20 per cent in the same time.

Manchester And Birmingham Top Growing Cities

In the last five years, the property market has remained sluggish where NBS said the homeowners are not selling; that's why fewer properties are in the market. However, the reports by Savills claim the growth will increase the property rates by an average of £32,000, and the slowest growth is expected to be seen in some of the markets of London, where the prices are 72 per cent higher as compared to a decade ago.

As per Savills - in the next five years, the rise in property rates in the East of England and South East may be around 9.3 per cent, and the leading regions that can perform the best are Manchester and Birmingham.  

Brexit hurts the property market, and the buyers were worried over mortgage regulations, interest rates and the market overall. Further, the increase in interest rates, affordability issues and other global politico-economic factors can hit the market.

To know more about UK properties, click Hamilton International Estates.