If you invest in residential real estate, you are most probably interested in capital gains. But contrary to rental income, future capital gains is a lot more difficult to estimate. How do you get an idea of what will happen?
At UK-realestate.com, we are focusing on middle England: the area around Liverpool, Manchester, Sheffield, Leeds,… In government newspeak, this is “The Northern Powerhouse”. The reasons are easy to guess: these are the cities that are growing fastest an they are – contrary to London – not massively over-valued. Prices of 3.000-5.000£/m² still allow for capital gains in cities where the centre is getting crowded. And the allow investment of 100.000-200.000£
It also means there is potential capital gains. But how much and where? And what cities have the best outlook?
We do not have a crystal ball, so we have to consult the internet. Fortunately there is a large number of companies that know a thing or two on residential prices in UK. As they are daily working with real estate transaction, we presume they know better than we do. And they have an idea of where the market is heading in the next years.
Most of these companies are kind enough to make that material available on the internet. Quite useful if you are living abroad and want to find out whats the situation in the different cities. .
Jones Long Lasalle (JLL for the friends) is one of the big boys. The company regularly publishes reports on the different regions in UK. The latest “Northern England” report is expecting a capital gains of ~3% in the North East. Manchester is ahead of the pack with an expected annual increase of 4.2%.
Savills & Halifax
Savills, another big boy is also publishing reports on the real estate markets in UK. Every month, the group publishes a monthly Residential Update, showing the average prices and price increases of the last months and year. They have a great map, showing the evolution in all of UK’s counties. Savills is expecting the “North West” to grow by 17% in the next 5 years – an annual increase of around 3-4%.
Halifax is the real estate broker of the high street. They are publishing their monthly “house price index”. A good idea of what has happened in the last few months, but no forecast for the future. In May, Halifax notices an annual increase of 1.9%.
CBRE is more into commercial real estate. But their research is quite indepth. One of the most interesting reports on UK real estate was published at the end of 2017. All (non-London) cities are being analysed and dissected from a real estate perspective. Unsurprisingly, the “Northern Powerhouse” cities are doing quite well in their analysis.
And the rest
Of course, there is 1.000s of other interesting websites, where one might find bits and pieces on UK real estate. Rightmove.co.uk is UK’s market leader in online advertising for real estate. Knock yourself out with 10.000’s of ads for any city in UK.