House prices rise in the UK’s major cities
Zoopla’s latest Cities House Price Index found that house prices have risen across 20 of the UK’s major cities for the first time since August 2015.
London property values were 0.4% higher, with Leicester leading the way with prices lifting year-on-year by 6.8%, followed by Manchester at 5.8% and Glasgow at 5.7%.
It is the first time that all the biggest cities in the UK have seen positive price growth, with an average house price increase in the UK of 2.8%.
The Brexit effect
Richard Donnell, research and insight director at Zoopla said, “Our latest index results show that house prices in London are starting to firm.”
Zoopla also noted that since Brexit prices have jumped in Leicester and Manchester by as much as 17%.
The report expects prices to rise in these cities, but at a slower rate that is similar to earnings growth.
Despite Brexit uncertainty housing transactions have remained consistent, with buyers remaining active.
Mr Donnell, research and insight director at Zoopla, said, “ the latest data shows that housing transactions have increased slightly in the first two months of 2019.”
London: a brand city
According to a report from a British property developer, London has been giving rental yields of between 4.5-5.5%.
Richard Leung, a property agent said, “For Hong Kong investors, Brexit is a buying opportunity.”
“Sterling has weakened and London property prices fell in the first quarter.”
“The major cities in the UK – London, Edinburgh, Birmingham, Manchester, Oxford, and Cambridge – will remain brand cities after Brexit.”
“Foreign investors will continue to buy here. It is easy and convenient for them to do so.”
Despite Brexit confusion, major developments like the Battersea Power Station in London (part of a seven-phased, £8bn worth redevelopment project) point to encouraging signs of growth and opportunity. The overall project is expected to generate more than 15,000 jobs, building 3,444 new residential homes, 517 affordable homes, a restoration of the power station, a new tube station, and 2.5 million square feet of office and retail space.
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