Property Growth in the North and the Midland Towns

Northern Property

The property market gap between the Northern and the South grew during the economic crisis when the price increased drastically below Bristol; simultaneously, the rates in the North and the Midlands were advancing bit by bit. 

Currently, the situation has almost reversed, with the new hotspot of the real estate market being the cities - Liverpool, Manchester and Leeds, and also regions in the East and the West Midlands. 

The inflow of workers into the northern cities led to higher demand for rental homes and a rise in prices in the city, such as Melton Mowbray, where prices grew 12.8 per cent in the year. The city is famous for pork pies and is known as the Rural Capital of Food.

Stamp duty exemption has been a successful initiative toward getting new buyers into the housing market. The quarterly autumn report by Strutt & Parker claims growth of 2 per cent in UK property in 2019. 

Residential stamp duty receipts grew 18 per cent in the months from Q2 to Q3 2018 at £364 million, mainly due to the rise in property transactions. The transactions increased in the phase by 11 per cent from Q2 to Q3 2018, although it was lower by 8 per cent in the same period y-o-y.

Cities like Birmingham are known for food, entertainment, and transportation – where the proposed high-speed railway connectivity, expected to open by 2026 and 2033, will link the cities in Midlands to Manchester and Leeds. 

Faster broadband, better job opportunities with flexible working opportunities, affordable homes, and improved connectivity are the key reasons for the rise in prices in the property market.

In the East and West Midlands, the rates are growing at over 6 per cent as per ONS data. Savills predicts- As compared to the estimated UK growth rate in the next year (or 1.5 per cent), the regions - Blaby and Harborough will get double-digit growth.

In the summers, the leading growth regions in the country were Stratford-upon-Avon, Warwickshire, and other areas, where the increase was higher than the capital city in regions - Leicestershire, Wellingborough, Kettering, Rushcliffe and the demand for new offices and warehouses in these regions boosted the growth rate.

London Buyers' Shifting to Growth Regions

Hampton's data found that 16 per cent more London buyers opted for property outside the capital in the first six months of 2018. In addition, 20% of the Londoners are leaving the capital city to shift to the attractive Northern regions, or the Midlands, where the stock is low compared to the growing demand. Many sellers are reluctant to sell their property during the Brexit confusion.

Property prices are rising in rural areas, and the development projects such as mainline railway lines close to Leicester and Nottingham led to growth in rates in the past year- by more than three times the average growth rate of the UK of 3.5 per cent.

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