With the first month of 2018 under our belts, we thought it high time to cast our eye to the year ahead and see what we think is in store for the property market in the coming months.
The regional cities will still come up trumps in comparison to London
There’s no doubt in our mind that London will continue to underperform against the regions. Current data shows London on a downward trajectory for the next 12 months, while the rest of the country has a rather more optimistic outlook. As the country drags itself towards Brexit the regional cities will face their own challenges, but with continued regional investment from government, businesses and developers – a high level of property growth should be on the cards for the coming year. This is more evident than ever in Liverpool where the city has benefited, and continues to benefit greatly from local investment (a further £7BN is forecast to be invested in the next 10 years). Lend Invest recently listed Liverpool as one of the Top 10 Buy-to- let locations in the UK. Our very own Liverpool development – Orleans House has seen a surge of interest in investors looking to benefit from excellent capital growth potential along with proven rental yields of up to 7%.
Graduates are now, more than ever, inclined to stay in their city of study
With high numbers of former students choosing to reside permanently in cities such as Manchester, Birmingham, Liverpool and Leicester after graduating the pull towards the fast paced life of London living hasn’t quite got the appeal it once had – in fact the number of people snubbing the capital hit a five-year high in 2017. Driven out by spiralling living costs, young professionals are increasingly drawn to regional alternatives that offer a better quality of life and, crucially, cheaper property prices. With more big- name employers setting up camp in cities like Manchester than seen before, it wouldn’t be surprising to see this trend continue through 2018 and beyond. We’ve seen this The Hallmark, with buy-to-let investors being drawn in with comparatively low property prices and strong rental yields. Purchasers have been quick to notice a serious shortage of high quality luxury apartments, available to let in Manchester city centre. As a result rents are rising rapidly, and in turn, rental yields.
Buy to let will experience a regional renaissance
It’s no secret that buy-to-let property investors have been stung by a succession of government policies in recent years. But there are still some very affordable pockets dotted across the country, it’s not a stretch to suggest that 2018 will see more investors turning to previously overlooked regional markets. And why wouldn’t you? Up-and-coming locations like Leicester, including our very own development, Aria, are offering investors yields of up to 8.5%, proving it’s certainly time to shift focus away from the Capital. Since launching in September, Aria is already 60% reserved with the first tenants in situ and their landlords enjoying a very solid yield.
If you’re interested in finding out more about property investment, or would like more information on our fantastic developments contact our sales teams, all our marketing suites are open daily 10am – 5pm:
Orleans House, Liverpool: +44(0)151 236 7777
Aria, Leicester: +44(0)116 255 9733
The Hallmark, Manchester: +44(0)808 164 4288