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House price forecast for UK property sees southern 'slump' whilst North prospers

Contributed by RW Invest
July 9, 2018

The latest figures by Nationwide indicate that UK house prices have surpassed the highestever growth recorded in 2007 by a momentous 16%, and buy to let investors are making the most of maximum capital appreciation on investments.

Britain's2018 market has recently showed positive growth of 2.5% up from the final quarter of 2017, and this level of inflation is predicted to continue into the future in the UK's flourishing property sector. The latest figuressuggest that there will be a further rise in house prices of 2.5% over the following two years and an overall increase of 18% by 2022.

With the cost of property experiencing growth in the past, present and the future, there's no better time than now for investors of buy to let to get involved with this world-renowned market. However, it's not optimistic for all locations within the UK as London experiences little to no growth whilst northern house prices soar.

After increasing for years on end, it seems that property in the capital has reached its peak, (for now). It's becoming more and more common to see investors sell up stock in London and turn their attentions to property up north where house prices are seeing the best growth rates and investments can therefore profit from capital appreciation.

Half of all London postcodes are undergoing cuts in property price growth, leaving no room for investors to cash in big on investments in buy to let. Whereas, a few miles up the country,northern regions have been recorded as possessing higher annual price growth than the south.

It's important to note that property prices and property price growth are two very different things. London may be experience 0% property growth, but the cost of purchasing buy to let houses and apartments in this chief urban location is still higher than most other cities throughout the UK.

Northern cities offer more affordable properties which are going up in price slowly and steadily. This creates the perfect conditions for a 'best of both worlds' investment as investors can pay less for an equally luxurious property whilst still making more money when selling after a period of time.

With the recently coined Northern Powerhouse pumping money into northern UK economies, investments in skills, education, culture and technology, to name just a few sectors, are helping to improve and enhance previously run-down metropolises.

As RWinvest state, 'Buy to Let in the Northern Powerhouse is reaching potential'. This is supported in the fact that Manchester, a leading destination deemed the London of the North, has seen its rental yields double the average on offer in London.

Greater rental yields support a higher available income for investors throughout the duration of their investment and the potential for capital growth enables a streamlined exit strategy with maximum profits. A combination of the two, complimented by low house prices, is a winning recipe for buy to let properties, and this simply can't be achieved in the south anymore.

Investors are already tapping into the south to north switch, but once more stability has returned to the market postBREXIT negotiations,even more investors will be encouraged to enter the property sector which will inflate UK house prices further, especially in key areas throughout the North.


Tags: investment | education | inflation | Invest



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