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New Knight Frank report confirms the North West as the place to be for UK property investors
February 10, 2015Article by Ray Withers
The Knight Frank UK Residential Forecast and Risk Monitor serves as an excellent analysis of the UK’s property market and the Q4 2014 edition made for very interesting reading for all those with an interest in property investment including me. Perusing the report this week I was pleased to see a predicted 3.5% house price rise for 2015, which represents a stable, healthy level of growth for the property market.
Looking to the future
Looking further ahead, the report projects cumulative growth of 18.2% in the five years to 2019, confirming the status of well chosen and well timed property acquisition as one of the most lucrative forms of investment available. For property investors, the prediction that UK rents will rise 2.2% in 2015 is also welcome news.
The Knight Frank report also confirms that the UK’s rental market will continue to expand. It is the fast pace of growth that the rental market has been experiencing which has made the UK such a delight for property investors over the past couple of years. Demand for high quality, luxury apartments is continuing to rise in UK cities, creating some excellent opportunities for those who know where to invest.
Raising the bar in the north west
The north west of the UK has been one of the most interesting areas so far as demand for rental property is concerned in recent years. I visited the area just last week and it was exciting to see for myself the shift in the market that ‘generation rent’ has brought about.
In Liverpool, young professionals are crying out for high end city centre apartments like those being built at Parker Street, while in Manchester it is all about waterfront living with stunning new developments like Custom Quay.
It was gratifying to see the Knight Frank report highlighting the potential of such developments:
“The advent of large-scale investment in build-to-rent could start to lift the quality of rental accommodation, especially in city centre markets which could result in outperformance over our mainstream rental forecasts.”
Being part of this raising of the bar so far as the quality of rental accommodation is concerned is, for me, an important development in the UK’s rented housing sector. New build developments and the remodeling of iconic older buildings into stylish new apartments is not just in line with the demands of current tenants, but is also forcing those renting out less good quality properties to improve their standards due to the increased competition. If this trend continues, the result will be better quality rental accommodation across the UK, leading to an enhanced experience for every single tenant.