The biggest property

trends of 2019

 

 

 

The biggest property trends of 2019

 

House prices may have dropped in 2018, but many regional markets, such as Manchester and Liverpool, remain extremely buoyant. There has been a major shift in the market recently, with increased levels of first time buyers moving onto the ladder. 

The next 12 months will be pivotal for the UK economy with Brexit on the horizon, so we’ve outlined our expectations for the property sector in 2019. 

Greater foreign investment

Without a doubt, the UK property market is still very desirable to investors. Over the last 12 months, it has maintained its appeal to international buyers and should continue to capitalise on this interest in 2019. This will ensure that it mirrors the UK’s infrastructure tactics. 

The increased number of direct flights from key UK cities to global locations is helping to propel inward investment. For example, Manchester launched its direct flight to Hong Kong in 2018, opening up business with Greater China. What’s more, Mumbai to Manchester is in the pipeline for 2019, which foster links with India and the North of England. 

With Brexit causing major concerns across Europe, property developers may focus solely on attracting investment from further afield – namely the Far East or Middle East. 

A review of stamp duty charges for international buyers is set to be reviewed in January 2019. Following this, the Government should make a conscious effort to increase the UK’s appeal overseas. Alienating international investment at such a crucial time could be harmful, so the government must re-emphasise its commitment to working with global markets.

A regional focus

As mentioned previously, there has been an undeniable shift to a regionally focused property market over the last 12 months, with London no longer the prime place for investment opportunities. While house prices in the capital remain on the decline, other major cities, such as Manchester, Liverpool and Edinburgh, are seeing huge demand for stock, resulting in high rental yields for buy-to-let investors.

LandInvest’s last index report of 2018 highlighted that smaller, commuter areas are becoming increasingly desirable to investors. The demand for private rental stock in satellite towns, with easy access into the city centres, will continue to increase in 2019 as people search for excellent quality homes that are more affordable. Property developers may respond to the trend by increasing their investment in these locations, delivering high quality private rented sector and buy to let schemes that rival city centre living.  

A narrower North-South divide

Over the last year, the London property market has seen the biggest hit. Investors are very cautious because the risk of capital loss is so high, while individual buyers are being priced out entirely. Amid this, the majority of Northern cities have seen massive growth in both housing demand and prices. These buoyant markets have the power to dominate 2019. 

The Northern Powerhouse initiative is attracting attention, both from the UK and overseas, and it’s anticipated that metro mayors will put more pressure on the UK government to make greater headway in 2019. This could have a direct impact on investment levels in the region, as more buyers opt to put their money into Northern Powerhouse cities and towns seeking stronger returns.

What’s more, with more businesses moving up North, such as Channel 4, which is relocating its national headquarters to Leeds,the North-South divide across the job and property markets is decreasing. Higher numbers of talented individuals may relocate to the North, causing house price margins between the two areas to narrow. 

Ultimately, 2019 is going to be a telling year for the property sector. We could see greater reliance on foreign investment from outside of Europe in the wake of Brexit. A shift in geographical power, as buyers and renters flock to satellite towns, particularly in the Northern Powerhouse, is also plausible. The key to navigating all changes over the next 12 months is to position the entire UK market as an attractive investment option, aiming to increase housebuilding levels to meet the rising demand.

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