House prices are still rising in parts of the UK, despite the property market having stood still for nearly two months between March and mid-May, when property viewings, mortgages and evaluations were finally allowed to resume.
Despite the grim prognoses by many property experts and financial think tanks, the latest house price Index by Zoopla reveals that many of the country’s regions are continuing to grow, with house prices up significantly from last year.
The most interesting finding in the latest issue of Zoopla’s monthly research is the fact that the growth trend in the north of England and the Midlands appears not to have been disrupted by coronavirus, at least thus far. Nottingham is showing a 4.1 per cent growth year-on-year in April – the highest rate in the UK.
Leicester, Manchester, and Leeds are showing house price increases of between 3.1 and four per cent, which is not surprising given that these cities have had a boost from regeneration projects and attractive buy-to-let developments aimed at students and young professionals in recent years. These cities remain a solid option for buy-to-let investors in particular.
Edinburgh is another city on the city index list that is showing strong house price growth of 2.9 per cent, which again proves that in the longer term, it’s not coronavirus that will determine house prices, but ongoing regional trends. Edinburgh has been experiencing something like a London housing bubble for quite some time, with demand for its period housing stock far outstripping the limited supply. The Scottish capital is unlikely to see a downward house price trend any time soon.
The London property market is showing signs of recovery, with a very modest rate of growth of 1.1 per cent – which is, nonetheless, a substantial improvement on last year’s drop of one per cent. It is likely that the pent-up demand now being released is boosting house prices in London, but home owners who were hoping to sell at a profit might be disappointed.
Finally, the cities that have seen noticeable house price drops in April are Oxford (-0.8 per cent) and Aberdeen (-1.7 per cent). Although they are located on the opposite sides of the UK, these two cities have one thing in common: a reliance on industries (oil and higher education) that have been severely disrupted by Covid-19, which may explain the slowing down of their property markets. If you live in either, we’d hold off selling, at least until there is some degree of a return to normal life.
BY ANNA COTTRELL
Source: Real Homes