The average asking price of properties coming on to the UK property market fell by 1.5% month-on-month in August, according to online property portal Rightmove. The drop in new seller asking prices, equivalent to a fall of £5,708, brings the average price nationally to £367,785.
The latest numbers are not a surprise for analysts as August has seen a monthly decline in prices from July for the last 18 years, and the shift is not out of character for the late summer months.
That said, the UK’s property market activity has been boosted largely thanks to the cut in interest rates by the Bank of England, which reduced the rate from 5.25% to 5% on 1 August.
Rightmove reports a 19% jump in the number of potential buyers contacting estate agents since then compared to the same period in 2023, with the number of new sellers putting their homes on the market up 5% compared to this time last year.
Below we break down which areas are offering exciting opportunities for investors.
Regional cities are growing in popularity
The latest data from Twenty7tec has revealed that Leeds, Bradford, Newcastle, Liverpool, Manchester, and Sheffield now account for 10.99% of all purchase mortgage search activity, marking a 67.1% increase from April last year.
This surge in demand highlights a shift in the UK housing market, with more buyers looking beyond London for affordable housing opportunities and quality-of-life. With a rising number of digital nomads who can work from anywhere and a growing sentiment among first time buyers and renters to get a foot on the property ladder away from the capital, different cities are experiencing an increase in interest, and some stand out above the rest.
Manchester
With its prime location, buzzing student population and growing popularity for major companies to set up new bases, Manchester has proven to be a prime opportunity for investors.
According to the Office for National Statistics, the average house price in Manchester in June 2024 was £243,000, 3.9% higher than the average of £234,000 in June 2023. Additionally, the average price paid by first-time buyers was £223,000 in June this year, higher than the revised June 2023 average of £215,000.
As for the rental market, the average monthly rent in July 2024 was £1,241, a 12.5% increase from July 2023. With the numbers indicating a growing upward trend in price points, 2024 might be the perfect time to move in on investment opportunities as the city grows in popularity and demand.
Birmingham
Beaten in size only by London, Birmingham has solidified itself as a hotspot for UK property owners in the post pandemic years. Boasting a thriving economy, impressive infrastructure developments and foreign investment, Birmingham is an exciting area for those looking to grow and strengthen a UK property portfolio.
According to the Office for National Statistics, the average house price in Birmingham was £232,000 in June 2024, similar to the revised figure for June 2023. Across the West Midlands, the average house price rose by 3.1% over the same period, while the average price paid by first-time buyers was £204,000 in June 2024, in line with the average the year before.
As for the city’s thriving rental market, private rents rose to an average of £1,003 in July 2024, an annual increase of 11.4% from £901 in July 2023. This was higher than the rise in the West Midlands over the year, and means buy-to-let property in Birmingham could offer consistent and reliable yields for property owners and landlords.
Edinburgh
Boasting six universities, a world-famous cultural scene and countless music venues, art galleries, museums and green spaces, Edinburgh is one of the UK’s most prime student cities and a highly popular opportunity for buy-to-let property investors.
The Office for National Statistics's data indicates that the average house price in Edinburgh in June 2024 was £334,000, 5.9% higher than the average of £315,000 in June 2023.
Across Scotland, the average house price in June 2024 was £192,000, which was more than a year earlier at £185,000. This means that in June 2024, Edinburgh had the highest average house price in Scotland.
As for the highly competitive rental market, private rent prices rose to an average of £1,362 in July 2024, an annual increase of 14.8% from £1,186 the year before and higher than the average rise in Scotland at 8.2% over the year.
With the demand for property in Edinburgh growing at a fast pace and the high likelihood of prices increasing with it, now is the ideal time to commit to the exciting opportunities the city offers.
The Bank of England’s early August interest rate cut and the UK’s post-election market confidence have made the second half of the year an exciting time for property investors to move ahead with plans to grow and diversify their UK property portfolios.
That said, thorough research and market experience are essential to help identify prime regional locations, understand local market dynamics and assess potential risks. Tailor my Property offers an experienced network of property, investment and financial professionals who can assist with specific goals and queries across the broader United Kingdom.
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