For the first time in two years, house prices have increased in every region of the UK. The rise could be indicative of the Conservative party’s landslide victory in December’s election and more certainty on the UK’s economic outlook following Brexit.
Data compiled by the Land Registry highlighted average annual house prices grew by 2.2% in December 2019, up from 1.7% in November 2019. December was the first month since February 2018 that house prices grew across all UK regions. The average house price in the UK rose to £235,000 which is £5,000 higher than it was in December 2018.
In addition to house price rises, data from the Bank of England showed mortgage approvals for house purchases rose to 67,241 in December 2019, the highest in more than 2 and a half years.
Average house prices increased by 2.2% in England, Wales and Scotland. England’s average house price increased to £252,000 in England, £166,000 in Wales and £152,000 in Scotland. Northern Ireland saw the largest increase of 2.5%, increasing average house prices up to £140,000.
In England, the regions of Yorkshire and the Humber experienced the highest annual house price growth, increasing by 3.9% in 2019. The South-East experienced the lowest annual growth, with prices only rising by 1.2% in the same period.
Whilst increased property prices are a testament to the strength of the UK’s property market with the ‘Boris Bounce’ driving up house prices, it’s not good news for renters wanting to get on the property ladder.
Increased house prices are preventing renters from affording homes that they want to buy, with help to buy schemes helping in just some of these cases. Because of house price increases, there’s a continuing trend of tenants choosing to rent for longer than ever before. Whilst this isn’t an ideal situation for renters, it’s a great environment for buy to let investors to thrive in.
Manchester has experienced a significant transformation over the last few years. With low residential stock levels coupled with high demand from tenants, Manchester has become an incredibly desirable place for property investment. House prices in Manchester have weathered well during Brexit and have continued to rise despite uncertainty and rental yields are strong due to high tenant demand.
Another major positive for Manchester for property investment is that Manchester is home to Europe’s largest student population. Manchester is home to 5 universities and over 100,000 students and was recently voted number one for graduate employment by the Sunday Times Good University Guide and The Times.
Research from the Manchester Brain Drain highlighted Manchester’s great student retention rate, with 51% of students from Manchester’s universities remaining in the city after graduation. In addition to this, 57% of students from Manchester who left the city for their studies, returned after graduation. These statistics highlight Manchester’s healthy rental market, making it an easy choice for investors.
Leading residential developer Beech Holdings have a number of buy to let investment opportunities available in Manchester city centre. One of these investment opportunities is located in the desirable Ancoats area. Ancoats Gardens is a high-spec residential development with two roof gardens, 155 luxury apartments, split level private gym, coffee roastery and shared social space for tenants.
Ancoats was recently regarded by The Times as one of the top 20 coolest places to live in the UK, increasing demand from renters wanting to live in the area, making it a lucrative choice for potential investors.
If you’re interested in investing in our Ancoats Gardens development or want to find out about any of our other developments, get in touch today.