According to a recent report from JLL, economic and political certainty will likely drive higher price growth in Britain’s property market in 2021 and 2022.

Although incremental changes will be experienced in 2020 – as construction companies work on rebuilding development pipelines – this foundational growth will set the grounds for substantial regional growth from the end of the year through to 2024. Greater London, East of England and the North West are forecast to experience the highest jump in house prices, at 17%, 16.4% and 16.5%, respectively. 

Manchester is expected to witness both the highest rise in sales price at 17.1%, and in rental growth at 16.5%, compared to any other British city over the next five years. The sales price is already remarkably higher than the UK average (14.8%), even though London is home to a larger number of developments. There are many reasons for these growth levels; primarily the local economy and ballooning population. 

Bristol is ranked second after Manchester, in terms of rate of growth. Sales prices in the South-western city which sits upon the River Avon are forecast to rise 17% between now and 2024. Bristol’s first co-living scheme has guaranteed planning permission, as the multifamily sector continues to expand with a high volume of developments in the pipeline. 

Leeds and Liverpool also continue to grow as strong locations for property investment. With the number of owner-occupiers, investors, renters and developers on the rise in the city centre, Liverpool is transforming into a modern city, with sales prices expected to hike 13.1% by 2025. Leeds is also witnessing drastic changes, with multifamily schemes in the project pipeline potentially fuelling a rent boom in the city’s property market. 

In the West Midlands region, the property market is similarly witnessing positive changes. Birmingham’s urban living sector has become a hub for development in recent years, and is expected to continue to grow as demand rises. An improved public transportation system at Grand Central, together with works being done on HS2 are likely driving growth. As a result, Birmingham will not only expand on the property-market level, but also on economic and demographic terms. 

As Britain’s markets slowly adapts to a post-Brexit era, the property sector is no different. However, greater price growth is expected in the UK’s major city centres, fuelled by grate economic and political certainty which invites upbeat consumer sentiment, robust real wage growth and a healthy labour market. 

Nick Whitten, Director of UK Living Research & Strategy, JLL said: “2020 is a milestone year for the UK’s regional cities and getting the property sector ‘back on track’. Whilst as a country we are still reconciling post-Brexit dynamics and there is a level of uncertainty that is affecting all markets, including housing, as everything begins to stabilise, housebuilders will be able to move forward and we can expect significant growth in the property sector across the UK.

“JLL forecasts regional cities will be able to retain their talent and bridge the gap they currently have with London if adaptations to their property hubs are made. These cities are currently on track for success, with many developing more modern living approaches. If this can be coupled with a balanced life-work package, a shift in the industry from a London-centric property hub can, and should, be expected.”