Are UK Housing Market Prices Increasing?
The big question is, are UK housing prices on the rise, and when will they fall again? Well, at the moment, the UK housing market is stable.
House prices have fallen a marginal 0.1%, according to Zoopla, coming in at £264,300 as of April 2024. Sale volumes are also starting to recover, with the number of homes achieving a sale 13% higher than this time last year. ¹
But what does this mean for Manchester property investment and property investment opportunities UK-wise as a whole?
Table of contents
- Are UK Housing Market Prices Increasing?
- Why Are UK Property Prices So High?
- Where Are The Best Property Investment Opportunities in the UK?
- How Does The Rising House Prices Affect The UK Rental Market?
- Do Rising House Prices Create More Property Investment Opportunities?
- The Benefits Of Off-Plan Property Investment In The UK
- What Will The UK Property Market Look Like In 2025?
- Invest In Manchester – The Heaton Group
Why Are UK Property Prices So High?
There are a few reasons why UK housing prices are so high, the main ones being high demand and low supply, which is why it’s great to invest in real estate UK-wise.
Of course, there are other factors at play here, too, like post-pandemic inflation and tighter mortgage lending criteria, another reason why landlords are having to shoot up rental prices to get profit.
Where Are The Best Property Investment Opportunities in the UK?
Location is key for anyone looking to invest in real estate UK-wise. The best property investment opportunities have to be in the North of England.
For example, Manchester buy-to-let properties have an average rental yield of a whopping 12% in the M14 postcode. ² This is a lot higher than the average UK rental yield of 5%-8%. ³
Invest In Manchester
Manchester property investment is one of the UK’s hottest markets. With a diverse economy, excellent transport links (home to the 2nd largest airport in the UK), and great job growth, this city is becoming more sought after than London.
Voted the best place to live in the UK ⁴, the population of Manchester is set to grow even further; the lack of supply and high demand makes this one of the most attractive property investment opportunities UK-wise.
Invest In Preston
Preston is an underrated and exciting investment opportunity for those looking to invest in real estate UK. The city has a high employment rate, a big student population, and easy transport links.
Preston has more affordable housing prices than the surrounding bigger cities, meaning a strong demand.
All the regeneration and development projects in Preston are set to boost the economy even more, with the improvement of key infrastructures and transformation of the University Of Central Lancashire hub.
How Does The Rising House Prices Affect The UK Rental Market?
Rising interest rates in the UK have a direct impact on the UK rental market. For example, the average UK private rent increased by 9.0% in the 12 months to February 2024. ⁵
This is because the high interest rates in the UK have made it more costly for landlords to finance their properties, resulting in a hike of rental prices in the UK to keep profit.
With inflation set to potentially decrease in 2024, we could see interest rates lower, meaning more affordable mortgage rates and rental prices. However, this will likely take a long time to happen.
Do Rising House Prices Create More Property Investment Opportunities?
At first glance, it can be easy to assume that higher house prices and mortgage rates would be negative for investors, but this isn’t exactly true.
Property investments in the UK remain prosperous thanks to the opportunity for cash buyers who get better value since they are avoiding rising interest rates.
For investors who bought their property with cash, high inflation and higher housing prices are even better since they get full value of capital appreciation.
The Benefits Of Off-Plan Property Investment In The UK
Rising house prices and mortgages make the off-plan property an attractive choice for those looking to invest in real estate UK-wise.
Buying off-plan properties means getting the opportunity to purchase properties at a below-market value, getting decent capital growth in return, and diversifying the investor’s portfolio.
Newer properties are always in demand as rentals, so choosing to invest in off-plan properties in the North of England in places such as Manchester and Preston will result in very healthy yields, too.
Investing in an off-plan property from reputable companies like The Heaton Group ensures there is a win-win relationship between the investor and developer. We have recently completed developments such as Urban Green, a new luxury development of 1-2 bedroom homes with an average yield of 6.9%.
What Will The UK Property Market Look Like In 2025?
The question that’s all on our minds, and the truth is, none of us know. The consensus is that housing prices will continue to grow in 2025, but at a more moderate rate, which is still good news for investors.
A recent research conducted by peer-to-peer property investment platform easyMoney has said that by 2025, we could see a growth of 6.3% in house prices, which is good for people wanting to invest in real estate in the UK.
Invest In Manchester – The Heaton Group
There is no better time than now to invest in Manchester, with lower housing prices, predicted population increases, and higher employment rates, but investors will get much higher yield rates.
For investors looking for off-plan property investment opportunities UK-wise, Manchester property investment with developers like The Heaton Group ensures our investors have direct access to us without third parties.
We help our investors build up equity in their portfolios and get increased profit from our off-plan developments.
For more information, contact us here.
