Before we look forward it is imperative that we look back.
2019’s property market focused on Brexit and the uncertainty that it will bring. Brexit had a huge impact on how the property market preformed in 2019.
However, despite the uncertainty there was hope. The property market is a strong, stable financial asset. It has been a beneficial asset for investors all around the world for a long time.
The good news is that this trend is set to remain the same.
Growth in regional areas over the past 2 years have sky rocked. This has pushed forward new developments and improvements in infrastructure. These improvements hint that the property market is likely to remain strong all through 2020, pandemic or no pandemic.
Investors were pushing off purchasing property in 2019 as they were waiting for some clarity. This resulted in a high level of pent up demand for 2020. 2020’s lock down furthered this pent-up demand. So, as soon as the property market reopened in June, the combination of 2019’s and 2020’s pent up demand caused a mini boom in the property industry.
Location trends are also beginning to shift
In the beginning of 2020, more people were moving their investments out of London. More suburban areas with green open areas are now being favoured compared to city centre life. This is because lock down gave people time to reflect on their housing desires after being locked down for months on end.
Ryan Dobratz. Manager of the TRGREV fund argues that investors should not be reluctant to buy in the capital as forecasts for job relocation’s didn’t materialise.
According to Hometrack, the most popular areas of investment in coming months will be:
- Birmingham
- Liverpool
- Cambridge
- Manchester
- Glasgow
- Leicester
Over the past few months Liverpool, Birmingham and Cambridge have shown the most capital growth compared to anywhere else in the UK. With plenty of regeneration projects in tow, this trend is surely set to continue.
The top locations for rental yields are Liverpool, Bradford and Sheffield. Rental yields here can reach 7-8%.