Property Market Update: Good News for Cash Buyers?

Demand for property remains high, fuelled by the housing shortages across the United Kingdom at this moment in time. Zoopla claims there are still 293,000 deals which are expected to close in 2022. Therefore, adding to the sales pipeline. This is a positive sign for investors. As a result of higher market activity, the property market will strengthen significantly.

It could be the perfect time to buy off-plan, as the housing market readjusts to accommodate the new interest rates. Investing in a new build property often means you can secure a mortgage at a later date. This will enable you to escape the rising interest rates. A mortgage is often secured when the development moves towards completion.

House prices in the UK have increased by 8.1% over the last year, with demand high, and supply of homes short. It is expected that house prices will stagnate or decline slightly into 2023 if the interest rates continue to rise. The UK has seen healthy growth, particularly in the Midlands, Northwest and the North of England. Nottingham has seen over 10% growth year-on-year. Liverpool, Leeds, Manchester, Leicester and Birmingham all appear in the top 10 list for strongest growth in 2022.

Manchester has seen significant growth in property prices, placing it as one of the top three cities for growth. Property prices in the city increased by 9.3% between September 2021 and September 2022. This growth is a result of the successful, large-scale regeneration across the city. This includes Salford’s Media City and improvements to the rail services. The projects reinforce Manchester as an economically strong and growing city, with industries attracting professionals from around the country.

Manchester is a growing business hub, attracting industry professionals and boosting rental demand in the city. As a result of the elevated levels of rental demand, vacancy periods will be low. As Generation Rent continues to grow, there is now a larger pool of tenants in the market. Property prices will continue to appreciate because of increasing demand, which makes Manchester a perfect city to invest in if you’re looking for capital growth. Manchester is a thriving city full of opportunities.

Birmingham also made the top 3 strongest growing property markets in the UK, with a strong annual increase of 9.2%. Firmly establishing it as an increasingly attractive city to invest in. The 2022 Commonwealth Games and the Big City Plan are just a couple of the projects fuelling property price growth and interest in the area.

CityRise recently launched an exclusive off-market development with a selection of 1,2 and 3-bedroom high-specification apartments. Situated between Birmingham city centre and Birmingham International Airport. If you would like to find out more about this development, check out our listing or get in touch.

Sheffield is currently delivering the £470m large-scale regeneration project, Heart of the City II. This city centre regeneration scheme will welcome new developments creating 7,000 new jobs. This successful scheme has played a part in the 8.6% annual house price growth. As the regeneration project continues, Sheffield is expected to become a lot more desirable for residents. With the ‘Levelling Up Sheffield’ scheme, transport across the city will improve. If you would like to find out more about the schemes, read our article about the Heart of the City regeneration.

In the Northwest, Liverpool’s house prices have climbed by 8.6% year on year. This is partially thanks to the Liverpool Waterfront regeneration which will see the relocation of the Everton Stadium to the river Mersey. This will also lead to Goodison Park becoming a mixed-use space for attracting business. As a result, demand for rental accommodation will heighten. The increasing levels of rental demand can be beneficial, as rents will follow a similar suit. Also, with a £100 million transformation of Central Park, the city is going to see a ripple effect throughout, so we expect property prices to rise year on year.