2021 has arrived, and what a year it’s set to be for the UK property market, and in particular the North.
According to The National Landlord Index published by Accommodation.co.uk, the vast majority of landlords in the private rented sector are currently optimistic about the year ahead. The newly released data found that over 80% of landlords are positive about the future of property investment after an impressive 2020.
Despite the challenges faced throughout the year, the UK property market performed admirably well and ended 2020 with a six-year high when it came to house price growth. According to Nationwide’s December House Price Index, prices rose by 0.8% from the month prior to reach the record breaking 7.3% and saw house prices end the year 5.3% higher than the level at the beginning of March.
The year was also extremely impressive in the North West of England, with house prices rising by 6.78% in the last 12 months, and an enormous 25.15% in the last five years (according to Zoopla) – and this upward trend is expected to continue in the coming year and beyond.
In the aforementioned National Landlord Index from Accommodation.co.uk, it also highlights which areas in the UK landlords are most likely to invest in the next year. Coming out on top was the North West, with 32% of landlords stating that the region is their preferred location for property investment this year. Behind the North West was the South East in second, with 27%, closely followed by the West Midlands in third with 20%.
The least attractive areas for investment were found to be in Scotland, Wales and the East of England, which accounted for a cumulative total of less than 5% of the total votes.
Founder and CEO at Accommodation.co.uk, Aaron Short, had this to say about the index’s findings; “We are always listening to our landlords and tenants to ensure our proposition reflects the needs of the market and this is why the National Landlord Index is so important. The COVID-19 pandemic has had a huge impact on the lettings sector, but it is great to see landlords positive about the future of the sector and this certainly mirrors the growth we have seen at Accommodation.co.uk.”
JLL echoed this sentiment towards property investment in the North in their Northern Regional Forecast report. The report states that the economies of both the North West and Yorkshire & the Humber are set to be two of the strongest performing economies across the whole of the UK over the next five years, and the property market in the North is expected to follow this trajectory.
Property markets in Manchester, Liverpool and Leeds are set to experience year-on-year growth in both their house prices and rental growth up until 2024. Manchester’s house prices will grow by a cumulative 27.1% and average rent by 16.5% in the 2020-2024 period, Liverpool will see a 13.1% house prices growth increase and 14.8% rental growth increase, and Leeds a 14.8% house prices growth and 12.0% rental growth increase.
Despite the economic wealth throughout the UK being heavily skewed towards those in Southern regions surrounding the capital for some time now, Northern cities continue to prove their economic worth and show exactly why investors are continuing to move away from the capital in favour of cities like Manchester, Liverpool, Leeds and Sheffield – and we expect this trend to continue for the foreseeable future as the North establishes itself as the leading area in the property market.
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