Desire for Space to Grow
In recent years, the North-West property market has begun to realise its potential. Historically, lower than average prices in the region have left the North-West with space to grow, but as prices are forecast to rise - and significantly - over the next four years, the North-West is very much growing into that space. A key reason for the recent price rise is that buyers in the region are looking for more spacious homes, as illustrated in an article from Property Reporter, which reveals that homeworking “has led to a significant increase in demand for bigger properties, which has likely driven the boost in price we’ve seen in detached homes” in the North-West. Therefore, for both the North-West property market and the people operating within it, the time has come for serious expansion.
However, the rise of property value in the North-West is not limited to detached homes. In fact, it has been widely reported that both property prices and rental yield of all stripes have been forecast to grow to remarkable new heights over the next five years. A recent report by real estate services provider Savills predicted:
The kind of growth indicated above is already taking effect on a month-by-month basis, as according to the government’s House Price Index for March 2021, Yorkshire and the Humber experienced the greatest monthly price rise of any region at 3.4%. This situation is mirrored in the world of rental yield, as Savills forecasts significant rental yield growth in non-London areas of 15.9% by 2025. The previous five years attest to the North-West’s capacity for lucrative rental price rises, which have reached 15.2% since 2016 according to property investors Thirlmere Deacon.
It is worth remembering that the health of this price and rental yield boom is directly tied to the health of the UK. Lucian Cook, head of residential research at Savills, has said that the “outlook has improved since the beginning of the year given the speed of the vaccination programme, the expected relaxation of social distancing measures, and Government support for both jobs and the housing market.”
Therefore, given the highly favourable projections for property values and rental yield in the North-West for the next four years, the region is beginning to look very healthy and should be considered a top area for investment both now and in the near future.