New UK house price growth figures have been released for June 2018 from Nationwide, Savills and the Office of National Statistics (ONS) in the UK’s Housing Market Update. So what has happened to the UK property investment market in the first half of this year and what are the key points that property investors need to be aware of?
Annual house price growth continues to be the strongest in the Midlands, the home of Birmingham. The most widespread house price falls are now in London, with Kensington & Chelsea and Hammersmith & Fulham seeing the biggest annual drops of 5% each.
The UK property investment sector has seen house price growth year on year with strong performances in:
East Midlands – Nottingham – 6.5%
West Midlands – Birmingham – 6.1%
North West – Manchester & Liverpool – 5.2%
Yorkshire and Humber – Leeds & Kingston Upon Hull – 4.5%
Future house price growth projections means excellent capital growth opportunities in:
North West – Manchester & Liverpool – 18.1% over 5 years
Yorkshire and Humber – Leeds & Hull – 17.6% over 5 years
East Midlands – Nottingham – 14.8% over 5 years
West Midlands – Birmingham – 14.8% over 5 years
The regions ERE Property specialise in compare very favourably on both measures against London. The buy-to-let market is very different from what it was ten years ago as the North and Midlands have sought to re-balance the economic divide as they grow levels of Foreign Direct Investment (FDI), investment in infrastructure and attract people to live and work in their cities. Manchester, Birmingham, Liverpool and Leeds have strong identities around the financial services, media, tourism and the car industry.
Most interestingly for UK property investors and landlords was that annual rental growth in the UK slowed marginally in May from April, remaining highest in the East Midlands at 2.8%, a rate which has been sustained for the last 18 months. In London, however, annual rental growth slowed to 0.0%.