Undoubtedly the uncertainty surrounding Brexit is having an impact on the UK property market and most commentators are predicting it will slow considerably in 2019.
It’s not just a case of slow growth either, with many forecasting prices actually falling in some areas of London and the south of England.
However, research has shown some parts of England and Wales are likely to buck this pessimistic view of the coming year, with the Telegraph newspaper highlighting 20 hotspots where it expects house prices to rise.
Growth in the West Midlands, East Midlands and Wales is predicted to outperform the rest of the country. The report identifies areas where earnings and employment levels are rising, which combine with low mortgage rates to drive up confidence in buying property.
The report considers the time it takes for property to sell, the ratio between asking price and sale price, along with the levels of house price inflation and how much growth potential the property market in each area offers in 2019.
It is clear that where the gap between the asking price and sales price is small, the market is strong. And when you take into account the time to sell is relatively short, we have factors that point to real hotspots likely to attract the interest of buyers and developers alike.
The Midlands is expected to perform strongly, with areas like Sandwell, Nuneaton, Nottingham and Coventry, building property optimism on strong local economies and job creation. It is no coincidence that we have offices in the Midlands and Wales, reflecting our strength in these areas.
These hotspots will be driven by job creation, with workers looking for cheaper housing near to their work, but pushed further afield by an area overheating and commuters needing to travel in once an area gets too expensive.
These are the 20 property hotspots being highlighted by the Telegraph:
- Newport, Gwent
- Sandwell, West Midlands
- Wyre Forest, Worcestershire
- Nuneaton and Bedworth, Warwickshire
- Nottingham, East Midlands
- Erewash, Derbyshire
- Blaby, Leicestershire
- Coventry, West Midlands
- Dudley, West Midlands
- North Lincolnshire
- Birmingham, West Midlands
- Wychavon, Worcestershire
- West Somerset
- Kettering, Northamptonshire
- Gedling, Nottinghamshire
- Staffordshire Moorlands
- Torridge, Devon
- North East Derbyshire
- Torfaen, Monmouthshire
- Rotherham, South Yorkshire
The capital is too expensive for many families, who are looking at towns or cities on a fast train route to London like Kettering which offers 47 trains per day, with the fastest reaching St Pancras in just 48minutes.
Of course, sometimes more direct factors can influence the potential growth of a regional market, like the removal of tolls to cross the Severn bridges into Wales.
This is perhaps one reason Newport in Gwent came top of the list. The lack of tolls opens up the region to those who want to live in Wales and take advantage of the more affordable housing on offer, whilst commuting into Bristol, or along the M4 corridor.
Signature has a significant number of clients across Wales, supporting the efforts of developers who were ahead of the curve, recognising the time to invest was before any reports highlight the value available across the region.
If you are inspired to increase your portfolio by investing in one or more of these property hotspots, please get in touch and we’ll explain how you can get a Signature on your next deal.