We have talked a lot recently about the uncertainty of the housing market for 2019. Brexit continues to dampen the market, with many shying away from investing in UK property amid fears there will be a continued fall in value.
It appears fairly difficult to forecast how the coming year will be for the property market, but we can say with some confidence that certain areas should see growth.
Our property investment advice would be to look at the location trends. The area most hit by the uncertainty is London, more specifically high value properties in the capital. This is largely due to property prices being the highest in the country – the properties with the most to lose.
Across the rest of the country, particularly areas in the North, average house prices have actually risen. When combined with the falling value of sterling, many overseas property buyers are increasing their interest in UK property. The benefit of this is that it maintains demand in the market and keeps prices afloat. So which areas are the best to buy in 2019? Below we have highlighted a few areas to consider.
Surprisingly, Northampton is one of the leading places to invest in UK property. House prices in the area in 2018 rose by 5.3%, a noticeably higher figure than the national average. The reason for this being the high demand – homes in the area sell on average in 33 days, likely from those moving to the area for work.
Leicester has reported the best year-on-year growth of all large UK cities – and got voted as the best city to invest in 2018 by Hometrack’s. Since 2000, property prices have increased by over 250%. With a prime location and future investment of £3bn, Leicester continues to be an attractive location for property investment. With a commute of both London and Birmingham approximately an hour away, it really appeals as an attractive destination for investment.
The small Essex town is experiencing serious property growth. Colchester has fantastic transport links, leisure facilities and schools. House prices over the last three years have grown by an average of £55,000. Colchester is boasted to be one of the best places to invest in terms of capital growth, rental yield and rental price increase.
Although other areas across the UK are likely to see greater growth, areas of London are still showing promising signs of growth – you just have to know where to look. The best place to invest in London is in the North East.
Leytonstone is one of London’s most up and coming areas and is touted by a third of estate agents as being the best area to invest in London. The area benefits from access to the undergrounds central line and future regeneration projects.
More buyers are looking further out due to lower prices, and this is reflected in the fact that house prices have rose by 83% over the past 5 years in the area.