London is traditionally viewed as the primary engine of growth in the UK housing market, but recent figures have shown that the capital is going through a period of decline in property prices, while certain regions have seen consistent increases.
The Land Registry’s official UK House Price Index for April 2018 showed that London experienced the lowest annual rise of one per cent during the month, significantly below the UK average of 3.9 per cent.
Of all the English regions surveyed, the north-east experienced the biggest monthly increase in prices of 4.2 per cent.
Northern Powerhouse cities offer growth potential
Despite this, the north-east continued to have the lowest average property price (£130,489), less than a third that of London (£484,584). The north-east could therefore be an attractive option for buyers looking for a combination of low entry prices and good capital growth prospects.
Experience Invest is currently offering opportunities in this region with developments such as Opto Student Newcastle, which gives investors a route into the lucrative student accommodation market.
As far as trends in London are concerned, earlier Land Registry figures for March 2018 showed that the annualised rate of house price inflation in the capital had dropped to minus 0.7 per cent. This represented the steepest decline in the city’s housing market since 2009.
Jonathan Hopper of Garrington Property Finders told the Guardian: “London is paying a painfully high price for its stellar run of price rises and a correction is now under way in several parts of the capital.”
One of the key factors in this recent trend is sellers being forced to make substantial reductions to prices in order to guarantee a sale.
While London will always offer a strong chance of capital gains and long-term investment returns, regardless of short-term trends, buyers seeking lower-than-average entry prices and good growth prospects could find what they are looking for in regional locations.
Alongside Newcastle, Liverpool is another vibrant northern city with a strong student population, where property owners can rely on high demand for desirable accommodation.
Opportunities for landlords in London’s commuter belt
For buyers who have their heart set on buying investment property in London, some commuter belt towns offer strong capital growth potential without the high price tag associated with housing in the Capital.
Located just 22 minutes by train from London, Luton is a prime example of a commuter belt town that offers investors strong capital growth potential and lower than average property prices.
Experience Invest’s new Imperial Square development is an example of how investors can capitalise on the high demand for Built to Rent property in London’s commuter belt.
With a 10% early investor discount currently available, apartments within Imperial Square offer some of the best growth potential on the market.
Delivered by an award-winning developer, investors can expect to achieve up to a 6% NET rental return and benefit from any price uplift on the local market throughout construction.
For more information about investing in property and securing the best return on your investment, simply contact Experience Invest today.