As the UK property market begins to recover from the brunt of Covid-19, global real estate service provider Savills predicts what the next few years will bring, with house price growth set to lead the way in the North West of England.
The coronavirus pandemic caused serious upheaval across every sector of the UK economy, with retail sales suffering a historic fall, airlines struggling and some of our favourite high street stores closing for good. Despite the pandemic, the property market continued to prove its resilience, especially in the North West.
Now the lockdown is beginning to ease, and steps are being taken to restart the economy, thoughts are turning to the future and many are wondering what the property market will look like in years to come.
According to Savills, the UK property market has the strength and resilience to recover from the blow of the pandemic. Savills announced that despite the disruption, they are standing by their five-year forecast and their long-term outlook is particularly positive for the North West of England.
Savills forecasted an annual price growth of 1% in 2020 for the property market, they now predict a contraction of 7.5% for 2020. However, Savills expects prices to return to an annual growth rate of 5% in 2021, followed by an increase of 8% in 2022.
According to Savills, the North West could benefit from some of the strongest price trends, with the region expected 8.5% growth in 2021 and 9% in 2022.
Prices in the North West are set to rise by 24% up to 2024, according to Savills’ five-year forecast.
Reassuringly for buy-to-let investors, Savills highlighted that the rental market is much more resilient than capital values during times of economic uncertainty. In the 2008 financial crisis, overall rents only fell by 2%, whilst house prices dipped by 18%.
Savills predict that rents will remain resilient in the coming years. Whilst the coronavirus crisis has created challenges within the private rental sector, research from the National Landlords Association has indicated that there is no evictions crisis looming due to the pandemic.
A survey carried out by the National Association of landlords, showed 90% of the 2,000 respondents had been paying their rent as usual during the crisis, with an additional 84% no needing to approach their landlord for support.
For those considering property investment opportunities in the North West, there are clear indications that the market will and is recovering well from the coronavirus pandemic.
With high rental yields, a huge student population and a very healthy job market, Manchester is not only one of the safest cities to invest in, it’s also one of the most future-proofed.
Beech Holdings have a number of new developments under construction in the city centre. One of these investment opportunities is 115 Princess Street. Located in the heart of Manchester city centre, 115 Princess Street is a buy-to-let investment opportunity with a guaranteed 7% net yield. Beech Holdings have a very limited number of apartments remaining for investment.
These apartments are pre-let, fully managed and located in an area with high rental demand, giving you a guaranteed rental yield of 7% net for the first 2 years. Beech Holdings’ apartments are located in prime areas with high tenant demand, our 97% occupancy rate in 2019 is testament to this.
If you’re interested in investing in the buy-to-let market but don’t know where to start, get in touch and our team will guide you through the process.