According to Zoopla’s April 2021 House Price Index, in the year to April 2021, average London values climbed by 2% and notably under the 4.1% UK average. When compared to regional cities in the north, Liverpool (+6.9%), Manchester (+6.8%), Birmingham (+4.7%), and Newcastle (+3.9%), these prominent UK cities are seeing significantly stronger rises than in the capital.
The lower entry level of these markets has also seen rents climb at a faster pace, with HomeLet’s May Index highlighting that rents in London continue to fall year-on-year, with a 0.9% drop between May 2020 and May 2021. When compared to the rest of the UK, 11 of the 12 regions monitored by HomeLet showed a year-on-year increase in rental value, with the East of England (London commuter belt area) increasing by over 8%.
Overseas investors considering UK property investment should pay attention to market trends to help underpin their returns and, with a shift towards a hybrid of office and remote working, areas outside of the capital are showing a real shift in power.