As we approach the end of Q1 2020 it is clear that the UK property market is full of confidence. We are anticipating a strong year ahead, with house prices rising across the UK – but particularly in regional cities where property values are growing rapidly.
The latest data from Halifax shows that the UK market continues to grow steadily heading into the Spring, with average annual house price growth of 2.8% and average quarterly growth of 2.9%. This shows that not only are property values growing strongly, the pace of growth is also speeding up as the year goes on.
Furthermore, it is not only house prices that are growing. According to HMRC monthly data, there has been a dramatic rise in UK home sales over the beginning of 2020. Monthly residential transactions were up 4.1% in January, reaching their highest level since June 2017, and year-on-year transactions increased by 5.2%.
This was confirmed by the latest RICS Residential Market Survey which shows agreed sales rising to a NET balance of +21%, instructions to sell rising to +19%, and buyer demand up to +23%. Put simply, this means that every key indicator in the housing market is on an upward curve.
The market is bursting with confidence, and the latest projections from Rightmove make it clear that things will only get better as the year progresses. The property portal giant argues that we are likely to see a series of new price records in the coming months, with upwards pressure being driven by a post-election release of demand. Even with a long-awaited glut of sellers coming to market, they are still dwarfed by the sheer scale of demand.
When looking a bit deeper into where house prices will grow fastest in 2020, the obvious place to look is Manchester. The JLL Living With 2020 Vision report shows that property in Manchester is likely to see the biggest rise in value of any UK city, with growth of 17.1% predicted in the next four years.
The growing interest in Manchester property is fuelled by the city’s economic power, the appeal of living in such a vibrant city centre and the exceptional employment opportunities on offer with firms such as BT and Amazon opening major offices in the city. What’s more, the upcoming HS2 high-speed rail line and the ongoing £1bn transformation of Manchester Airport will cement the city’s status as a global destination for people and businesses.
Finally, the mortgage market is also performing strongly and backing up the UK property market surge. The latest Money and Credit statistics from the Bank of England show that mortgage approvals rose 4.4% between December and January to 70,900 – the highest figure on record since February 2016. Furthermore, approvals for remortgages also rose by 3.9% month-on-month.
An influx of demand in the new year has seen the mortgage market outperform expectations, and it is likely that the Bank of England’s decision to cut the base rate to 0.25% will ensure the good news keeps coming over the rest of 2020.
This is an ideal time to purchase an off plan property in the UK and take advantage of the ongoing property price growth. To read more about our available residential properties, please click here>>