20 Dec by Amy Jackson

The UK Property Market 2019 Roundup – with Predictions for 2020

A Year in UK Property Market News

For the UK economy and property market, 2019 has proven to be a very eventful and positive year. As predicted back in 2018, the property market in the UK remained strong, with key Northern cities like Liverpool and Manchester continuing to lead the way for property price growth and regeneration.

To celebrate the end of 2019 and the beginning of 2020, we’ve put together a roundup guide with some of the key moments of 2019 and predictions for what lies ahead in the upcoming year. Read on for our 2019 property market month by month summary and 2020 property market predictions.

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The UK's Key Moments of 2019

Liverpool A City On The Rise

January 2019

Beginning the year on a positive note, one of the first and most significant pieces of property market news of 2019 was revealed. The Guardian reported in January that the UK’s house prices rise at the fastest rate in the North of England and the Midlands. This information was found through a study made by property website Zoopla, and revealed that in the years following the 2016 referendum, Birmingham, Manchester, Leeds, Liverpool, Leicester, and Sheffield all saw high house price growth.

 

February 2019

In a report by Proptech firm Datscha, it was found that there had been a surge in interest in the Liverpool property market from US investors. Around £361 million had been invested into Liverpool property by international investors from November 2017 to November 2018, with around £156 million of that figure coming from American investors.

 

March 2019

UK MP’s voted to delay Brexit following on from the UK’s expected departure from the European Union on March 29th. Brexit uncertainty had played a big part in the country’s property market throughout 2019, leaving many investors, particularly those from overseas, to question whether to make a property purchase. However, a 1.1% monthly growth in property asking prices was recorded during the Spring season, suggesting that the UK market remained strong in the face of this uncertainty.

Liverpool Population Doubles

April 2019

Construction began on one of our most highly anticipated properties – One Baltic Square. This development is expected to complete by the end of 2020, bringing an exciting new residential development to the Baltic Triangle, one of Liverpool’s most popular areas.

 

May 2019

Details of an upcoming Birmingham regeneration scheme were announced in May, which will transform the site of a 1960’s shopping centre into new apartments, a hotel, and retail, office and leisure space. Within the same month, work began at Parliament Square in Liverpool, an upcoming residential development based in the Baltic Triangle which will feature luxury amenities like a rooftop swimming pool and spa.

 

June 2019

Ropemaker Place, an exciting Liverpool development, reached completion in June. Located seconds away from the popular Liverpool Bold Street, this development attracted lots of attention from investors interested in catering towards Liverpool’s growing young professional scene. In the same month, Liverpool FC also won the European Champions League 2019, which was estimated to bring around £150m to the city according to Liverpool mayor, Joe Anderson.

Liverpool's Baltic Triangle

July 2019

In July, the Guardian reported that London house prices had fallen at their fastest rate in ten years, with a 4.4% drop recorded in May 2019 compared to the previous year. This highlights the fact that although London is viewed as a prime investment opportunity, recent property price growth suggests investors may be better looking elsewhere in the UK.

 

August 2019

Construction began for another upcoming RWinvest development in August – Poets Place. This property is considered a dual-use apartment, catering to both students and residential tenants. Priced from just £70,950 with 8% rental returns, Poets Place is a hugely lucrative and highly anticipated development, with many investors eagerly awaiting its completion.

 

September 2019

In September, Liverpool received the exciting news that the once-abandoned St James station in the Baltic Triangle could be re-opened. The relaunch of this station, which has been closed since 1917, could contribute massively to the overall growth and regeneration of Liverpool’s Baltic Triangle, increasing the appeal of the area.

Boris Johnson Brexit

October 2019

On the 31st October, the UK was scheduled to leave the EU in accordance with Boris Johnson’s Brexit plans. Instead, a decision was made to call for a general election on 12th December, prolonging Brexit even further. In other news, a record-breaking period was reported within the port of Liverpool, with a year-on-year growth of 12 per cent in October. This draws attention to the economic strength of Liverpool as a UK powerhouse city.

 

November 2019

Lots of exciting property related news hit Liverpool in November. One Islington Plaza, the eagerly awaited Liverpool student property development, completed in November 2019, bringing innovative architecture and stylish accommodation to a top student area of the city. Another Liverpool property, Parliament Square, received a visit from the Mayor of Liverpool, Joe Anderson, to mark the beginning of the next phase of work.

 

December 2019

On the 12th December, the UK voted for the next prime minister in a general election. The final decision revealed a large conservative majority, with Boris Johnson continuing his role as Prime Minister. Shortly after the result of the election, the British pound and stocks saw a significant rise, bringing some stability back to the UK economy after a year of unpredictability.

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UK Property Market 2020 Predictions

2020 is looking like a promising year when it comes to the UK property market and property investment prospects. 2020 property market predictions for the UK focus a lot of attention on house prices, the impact of Brexit, and advancements in the rental market. If you’re interested in making a UK investment in 2020, here are some details on what you can expect in the new year.

In a 2020 property market forecast by JLL, it’s been predicted that as a whole, property prices in the UK are set to rise by around 2.5%. Within the same report, it was revealed that Northern cities will lead the way for property price growth, with an average increase of 3.1% in the North West and 2.7% rises in Yorkshire and the Humber. When focusing on particular cities, Liverpool, Leeds and Manchester are all expected to see house price growth of 3.5% in 2020.

Within the JLL 2020 property market forecast, predictions have also been made regarding the strength of the UK rental market. The UK is expected to see average rental price growth of 2.5%, while Liverpool and Manchester’s rental market continues to thrive with an increase of 3%. Rental price growth is such an important element of buy to let, and with the North West’s property market on the up in terms of both rental and property price growth, it appears that now is the perfect time to invest in Liverpool or Manchester.

Brexit has been a running theme throughout the 2019 property market in the UK, with those in the UK and the rest of the world questioning when and how the exit from the EU would happen and Brexit’s impact on the UK property market. By the end of 2019, there’s now more clarity on Brexit, with a high likelihood that the UK will leave the EU on the 31st January, under the terms outlined in the withdrawal agreement.

One thing for overseas investors to keep in mind for 2020 is that following December’s general election result, the pound rose at an impressive rate. The Great British Pound fell as low as 1.22 USD following Boris Johnson’s appointment as Prime Minister in July, but rose to 1.35 USD after the latest general election news, revealing a positive economic shift. While we still don’t know for sure the effect that leaving the EU will have on property market trends, it’s likely that further certainty in the UK market and the ongoing strength of the GBP is set to continue.

House Price Growth

In a 2020 property market forecast by JLL, it’s been predicted that as a whole, property prices in the UK are set to rise by around 2.5%. Within the same report, it was revealed that Northern cities will lead the way for property price growth, with an average increase of 3.1% in the North West and 2.7% rises in Yorkshire and the Humber. When focusing on particular cities, Liverpool, Leeds and Manchester are all expected to see house price growth of 3.5% in 2020.

Rental Market Growth

Within the JLL 2020 property market forecast, predictions have also been made regarding the strength of the UK rental market. The UK is expected to see average rental price growth of 2.5%, while Liverpool and Manchester’s rental market continues to thrive with an increase of 3%. Rental price growth is such an important element of buy to let, and with the North West’s property market on the up in terms of both rental and property price growth, it appears that now is the perfect time to invest in Liverpool or Manchester.

Brexit

Brexit has been a running theme throughout the 2019 property market in the UK, with those in the UK and the rest of the world questioning when and how the exit from the EU would happen and Brexit’s impact on the UK property market. By the end of 2019, there’s now more clarity on Brexit, with a high likelihood that the UK will leave the EU on the 31st January, under the terms outlined in the withdrawal agreement.

One thing for overseas investors to keep in mind for 2020 is that following December’s general election result, the pound rose at an impressive rate. The Great British Pound fell as low as 1.22 USD following Boris Johnson’s appointment as Prime Minister in July, but rose to 1.35 USD after the latest general election news, revealing a positive economic shift. While we still don’t know for sure the effect that leaving the EU will have on property market trends, it’s likely that further certainty in the UK market and the ongoing strength of the GBP is set to continue.

With a clearer outlook on Brexit, an ongoing trend of property price growth, and an increasingly strong rental market, property market news makes it clear that those investing in property within the UK are set for another fantastic year!

Sarah Roberts, RWinvest

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