Market Research Report
Residential Real Estate Market in United Kingdom - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
|Residential Real Estate Market in United Kingdom - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)|
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 78 Pages
Delivery time: 2-3 business days
Growth in the size of the UK economy in terms of GDP has averaged 1.3% (on an annualized basis) until Q2 2019. The economic growth in the UK remains modest at 1.2% in 2019. House price growth in the UK has picked up despite continued economic and political uncertainty but remains far below the levels seen before the EU referendum.
It is observed that the Northern housing market is still outperforming the south and the north-west has gone from strength to strength in recent years. Demand in the area is high, making it an ideal spot for all range of buyers from first-timers looking for better value to property investors hoping to tap into the strong rental markets and yields on offer there.
However, there are large parts of the country where housing affordability remains attractive and continued economic growth is supporting housing demand, leading to shorter sales periods and lower discounts to asking prices.
The total residential real estate market value in England and Wales was GBP251 billion in the year ending March 2019. This was a decrease of 4.7% from the previous year, and it was 9.9% less than the highest level of housing market value. The total value of residential property transactions (unadjusted for inflation) decreased most in London.
In the United Kingdom, residential property sales volumes have been reduced by Brexit uncertainty since June 2016. While prices are still rising on average across the country, the pace of growth has slowed. Average house prices in the United Kingdom increased by 1.2% in May 2019, down from 1.5% in April 2019.
The atmosphere of unpredictability due to Brexit Decision over the economy and the uncertainty tormenting international businesses with the UK arms have discouraged people from making the big financial commitment entailed in a top-end London house purchase.
Average rents are rising in the United Kingdom. The average rents rose by 2.7% in October 2019 when compared to the same month in the previous year; the average monthly rent is now GBP953.
Rents in London increased by 2.8% in October 2019 than in the same month of 2018; the average rent in the capital now stands at GBP1,665 a month.
The rents rose from all the regions in 2019 as compared to 2018. Rents in the North East are growing faster than any other region in the United Kingdom, whilst rental growth in London has now decreased by over 1.7% for the past few months. Rental values in the North East, North West, Scotland, Yorkshire & Humberside, Northern Ireland, East of England, and South West all rose at a rate faster than the UK average.
The residential real estate market in the United Kingdom is fragmented due to the low level of market share concentration. The UK real estate technologies continued to mature in 2019. It continues to be a prominent technology and innovation funding and experimentation zone. The industry is highly competitive. The UK market is experiencing a shortage of houses, which has led to higher demand, which has had a positive impact on the big housebuilders in the United Kingdom. Several of them have reported a rise in sales due to the healthy demand for new homes. Key players in UK housebuilding are Miler Homes, Crest Nicholson PLC, Barratt Developments, London and Quadrant Housing Trust, Bellway plc, Kier Group plc, and Berkeley Group.