Anyone who’s been keeping an eye on UK property prices will know that London has dominated the market for years. Flats, houses, offices and property of all shapes and sizes have been steadily increasing in value year after year, with a 7% increase in the past 12 months alone according to the London Datastore.
However, that might all be about to change. Many investors are now looking beyond the capital and putting their money in the UK’s regional towns and cities. This is expected to give the country’s property market a significant boost in the coming years, pushing prices up and giving developers and homeowners great returns in the process.
The London market
Though it’s probable the London market will continue to offer investors excellent returns in post Brexit Britain, the high cost of property in the capital is already beginning to put some investors off. According to Rightmove.com, the average price of a London property is now £578,968. This is compared to £367,938 in the South East and just £301,972 in the East of England.
Investors who want to buy offices, blocks of flats and other large scale properties face even higher prices, something that’s prompting many to look outside of London’s booming property market.
Booming regional growth
Not only is property in the UK’s regional towns and cities more affordable, many experts believe locations outside of the capital offer a better potential for growth. For example, the ONS recently reported that property prices in the East of England grew by a huge 13.3% in the 12 months to August 2016. This was considerably more than the national average of 8.4% and the London average of 12.1%.
As well as benefiting from significant investment in property, the UK’s regions are seeing a dramatic increase in the number of British and foreign companies relocating from the capital. A lot of businesses are opting to base themselves outside of London in order to cut costs, boost productivity and attract talent. This is a trend that’s set to grow in the coming years as improved infrastructure and connectivity make life outside of London ever more tempting.
If you’re considering putting your money in bricks and mortar and want to get ahead of the market, we can help. To find out more, get in touch with a member of our team today or take a look around our site.
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