As you likely know, last year was an interesting period for the UK property market. What with Brexit and the general election uncertainty, it’s been an unstable time for both buyers and sellers.
Despite this instability in the property market, things did still plod along, albeit at a slower pace in some places.
What is the research
Post Office Money analysed data from Office for National Statistics to discover which locations boasted the biggest house price increases in 2019. The data looks at house prices and first time buyer affordability across the UK.
Below are the top 10 areas for growth in house prices:
- 11% – Nuneaton & Bedworth, Warwickshire
- 10% – Stockport, Greater Manchester
- 10% – Leicester, Leicestershire
- 9% – Cardiff, Glamorgan
- 8% – Sandwell, West Midlands
- 8% – Edinburgh, Scotland
- 8% – Coventry, West Midlands
- 7% – Wolverhampton, West Midlands
- 7% – Sheffield, South Yorkshire
- 6% – Birmingham, West Midlands
We can see that there are double digits of house price growth in Nuneaton, Bedworth, Stockport, and Leicester. Main cities in Wales and Scotland are ones to watch, like Cardiff and Edinburgh.
As a general trend, major cities in the Midlands and North are performing better in terms of house price rises than those in the South. Cardiff, Sheffield, Nottingham and Birmingham are continuing to grow.
What about buy-to-lets?
If you’re looking to buy-to-let, the above information is really valuable. In 2007, there were 2.8 million renting households in the UK, which rose a huge 63% over 10 years to 4.5 million in 2017.
As well as providing this analysis, Post Office have provided 5 top tips to consider when investing in property in 2020.
Investing in property is often a long-term endeavour. This is especially the case if a landlord wants to wait for the UK market to rise in price. If this is the case, you’ll need to ensure you know the area you’re purchasing your buy-to-let. Properties in the area need to have grown in price recently, and at an increasing rate. You wouldn’t want to invest somewhere where property prices are stagnating or crawling up in price. Keep an eye out for London and the South East as things are slowing here.
Looking at previous patterns in the market of an area is important, but you need to also consider future changes and how this can impact the market. Is there any investment occurring locally such as revamping the main shopping centre, or new business parks? If the councils are investing in an area to bring it up to scratch, it indicates that the area is becoming more desirable, which leads to a boost in property prices.
What is the type of tenant in the area you’re looking to purchase? If it’s near a school and it’s young families, make sure you purchase a property to match their requirements like a 3 bed house. If it’s in a city centre near to major office buildings, you may want to invest in flats as there will be young professionals looking for places to rent.
Before viewing properties which interest you for your next investment, get a mortgage in principle ready. If you want to put an offer in, having this to hand will put you a step ahead of those who don’t.
How fast is the market moving in the area you’re looking? If it’s moving fast, meaning that places don’t stay on the market long, it’s a good sign that demand is healthy. It’ll also give you an idea of how fast you need to act in order to secure the property you want.