Professional property finders Garrington highlight some common mistakes property buyers make and offer expert advice on how to...
Where to buy property in 2019
In our latest National Market Review we looked at which areas in the UK offer the most opportunity for purchasers in 2019 based on current price trends and the local economic environment.
If you were considering buying a property and weren’t particular about where in England you bought a home where would we suggest?
Potential for price growth
The data in our latest report suggests that North East England has the greatest potential for property price growth in 2019.
Average house prices in the area are currently just 5 times the average earnings compared to the national average of house prices being over 8 times average earnings.
Property prices in the region are 8% lower than their previous peak indicating that there is room for reasonable price growth.
Most active property markets for 2019
The property market in the West Midlands, which includes Birmingham, Coventry and Wolverhampton is seeing the greatest momentum. In 2018, on average, properties in the West Midlands sold 10 days quicker than the rest of the country. The rate of price growth in the area is currently almost double the national average.
As with most of the UK, transaction levels in 2018 where lower than 2017 however we expect the area to continue on the current upward trajectory and believe it is likely that the West Midlands will outperform the property market, in terms of price growth and transaction levels, across the rest of the country.
Locations for landlords
There are several locations across the UK which we believe offer good opportunity to rental investors in 2019. Based on the current strength and any projected plans for infrastructure and the local economy along with property market trends for the area we would suggest the following locations for consideration.
North West England
The north west region continues to offer investors excellent prospects; the latest data shows that transaction levels have increased and prices are rising by more than twice the national average.
The city of Salford within the Greater Manchester area continues to offer opportunity. Since the arrival of MediaCityUK within Salford Quays, prices and transaction levels have increased significantly. Employment growth is rising at higher levels than many cities across the UK pointing to continued demand for property in the area.
Yields for apartments in Salford currently average at around 6%, higher than most other cities across the country, offering investors the potential for a higher return. The current rate of price growth in the area is just shy of 7% which is higher than the majority of alternative investment locations.
In other parts of the north west, areas that might be worth considering depending on your investment priorities are Liverpool and Rochdale, both have their own, differing merits when considering locations to purchase investment property.
The East Midlands
Following the recent announcement that the HS2 rail link will provide a 4 billion pound boost to the local economy and over 70 thousand new jobs to the East Midlands, which includes Nottingham and Derby, there is strong indication that the local property market will be positively affected.
In Derby the average rental yield on a flat is 5.5% and in Nottingham the average rental yield on a flat is 6.3%; average yields in the area are already higher than many locations across the UK.
The South West
Exeter saw a boost in job growth of 13% in 2018 which is significantly more than the national average, there was seemingly a a chain reaction leading to an increase in demand for rental properties.
The average rental yield on a flat in Exeter is currently a reasonable 4.6%.
Opportunity for purchasers in London
As of January 2019 there are some discounted properties to be found across London, especially in situations where the vendor needs to sell – it remains to be a market slightly weighted in the favor of the buyer.
With regards to locations to consider, prime central London offers buyers the most significant discounts compared to previous peak values. Property available for sale is low in certain areas where sellers are holding off until the market seems more balanced, meaning for the most part the best properties in the desirable areas are remaining largely unaffected by the current uncertainties.
Where to buy a property?
If you’re looking to purchase a property in 2019 we would be delighted to assist with your search. Our professional property finders are well informed on both the national property market and their local markets meaning they can provide you with considered advice.
Whether you’re unsure of the best location for your investment or you are sure of the region but not the exact area we can help you find the ideal location to match your requirements and ensure your investment property purchase has the greatest potential.
For a no obligation discussion regarding your property buying plans in 2019 please contact us to learn more about our property finding service and how we can facilitate your search.