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How the Property Market Trends Look Like in May 2020?



Abricko takes pride in being able to share our findings of the property market help property professionals make quicker and better-informed decisions regarding property investing. With that in mind and alongside the national data that we found so interesting, we decided to share the news of the market in the 10 major cities of England


Birmingham

Why not start with a major city in England’s West Midlands region, known as one of the best cities to invest in property due to their price growth.

Firstly, looking into the areas of growth it is interesting that the central Birmingham areas (B5 and B1) have seen the highest capital appreciation in the last 12 months followed by the areas with postcodes of B29 and B30 with the year on year growth of 13% and 12% respectively. Secondly, the volumes of sales are quite amazing as well. In the last 12 months, there has been a total of 11,273 properties sold in Birmingham taking into account only the areas in the first table showing the year on year growth.

In comparison, as in every city or town, there are places where property prices tend to go down. Abricko data shows the biggest decline in property prices showing a -12% drop is in B50 postcode, which covers the areas of Bidford-on-Avon, Barton, Bickmarsh and Marlcliff. The second place in the list goes to Sutton Coldfield, which has a sales count of over a thousand properties, showing a -10% drop in property prices in the last 12 months followed by Edgbaston with a -9% decline.

Overall, Birmingham can still be considered to be an extremely attractive place to invest in property. The data shows very positive figures regarding the growth in property prices and reveals some of the areas that the investors may want to avoid.

Bradford

Bradford forms part of the West Yorkshire Urban Area with a population of over 530,000. The city is an excellent location just 16 miles from Leeds with very good links to the rest of the major northern cities and easy access to the M1 motorway. This is another attractive location for the property investors across the UK bringing excellent yields.

While Bradford may not be the first choice for some property investors, the data above may turn the tables around. Of course, there are some areas that many would not want to invest in. Base on the data above, we can see that some of those areas include Baildon (BD17) and Shipley (BD18).

On the other hand, we can see an astonishing growth of 34% in the property prices over the last year in the Clayton area (BD14), just 3 miles away from Bradford City. The second place is taken by Bingley where we can see the volume of sold properties reaching 1,041 and year on year growth of 12% followed by an area covering Greengates, Idle and Thackley in DB10 showing 11% growth. The data also shows a number of other places in Bradford to at least keep an eye out, including Cross Hills (BD20), Skipton (BD23), and South-West Bradford by the Halifax road (BD6).




Bristol

Bristol is one of the ten biggest cities with circa 450,000 residents and one of the biggest centres for retail, healthcare, and education in the South West. It is not only a major student city but also a place where property professionals can find a significant growth in residential property prices.

The biggest growth in property prices has been recognised in the very heart of Bristol (BS1) achieving a 21% increase in property prices in the last 12 months. Capital appreciation in other areas in Bristol has not been so dramatic in comparison to central Bristol. However, the data shows healthy growth in areas covering St Philip’s Marsh (BS2) and Redland (BS6) with grown of 11% and 9% respectively, closely followed by the area covering Fitton, Little stoke and Stoke Glifford (BS34). Maybe it’s because of the development plans for the old Filton Airfield?

In addition, Bristol seems to be showing great volumes of properties sold in the last year. What we found on Abricko is that there are a number of locations with volumes over 1,000. This is topped by BS16, where a staggering number of 3,349 properties were sold in the last 12 months! Based on this data, Bristol is showing great potential for property investors!


What data also showed us is that Bristol has not experienced a huge decline in the property market compared to some other locations, which is also positive news. The decline can be seen in five areas in Bristol ranging between -3% and -1%. In the current climate, this can be viewed as a win!


Coventry

A city in central England in Warwickshire is said to be the fastest expanding city in the country outside Greater London, according to ONS figures in 2019. While is it not often on the investor's radar, maybe we should give the city second look? Coventry benefits from being in a convenient location close to Birmingham, where the property prices are still well below the national UK average. Coventry seems to offer the potential for property investors and this was one of the places we also looked into in order to share what opportunities this city presents.

Based on our collected data, which is directly linked with the Land registry, the top place showing an amazing 13% growth in property prices in the last year is taken by the area accommodating the University of Warwick (CV4). There have been over 1,000 properties sold and it shows that this city can surely compete with the big players in the game, such as Birmingham. Two more locations in Coventry have also seen good capital appreciation ranging between 5% and 8% with high numbers of properties sold over a period of 12 months. While in some places the market seemed to have slowed down and stayed flat with 0% growth.

Of course, as in other major cities, we identified locations where the market has been declining. The biggest decline of -7% can be seen in locations such as Rugby (CV23) and areas next to Royal Leamington Spa (CV33). In addition, there are several locations where prices depreciated just around -3%, including locations just outside A45 and Coventry Eastern Bypass roads, followed by a minor -2% and -1% decline in a location such as Stratford-upon-Avon (CV37) and Nuneaton (CV11).



Leeds

With the population reaching around 785,000 Leeds is at the heart of one of the largest urban areas outside London, alongside the West Midlands and Greater Manchester. Leeds has been attracting a lot of property professionals due to the vast investments in the city, excellent transport links and many development projects in the pipeline.

Of course, as Leeds seems to be an attractive location for property investing, we have analysed the data in order to show you which areas have seen the biggest growth and decline. Firstly, we have been pleasantly surprised that the top location showing 15% growth in Leeds is currently Kirkstall area (LS5). This is followed by Burley (LS4), Chapel Allerton and Chapeltown (LS7), and Temple Newsam, Scholes and Barwick in Elmet areas (LS15) with 13% and 12% increase in property prices during the last 12 months. Secondly, Leeds has seen a healthy capital appreciation in several other locations with 8% growth in prices in Guisely and Hawksworth (LS20) as well as Calverley, Farsley and Pudsey (LS28). Investors looking to buy their properties in Leeds have surely got a number of locations to choose from.



In comparison, there are several areas that present declining property prices. The top place with -7% depreciation is taken by a large area covering Wetherby, Collingham, Sicklinghall, Kirk Deighton and Cowthorpe (LS22). The second place goes to Roundhay (LS8) with 5% depreciation in property prices. While the depreciation in these areas is greater than in others, it could as well present an opportunity to buy properties with a discount should the tables turn around in the next year.

In summary, the data Abricko collected clearly shows that there are a number of opportunities in Leeds with fairly high capital appreciation as well as some areas presenting opportunities to buy cheaper properties.


Leicester

Leicester is one of the less popular in property investing, however, can still attract some investors attention due to below-average property prices and growing population. In addition, it seems to be a fairly popular student city, which may be appealing to student accommodation investors. So let’s have a look at what our data shows in terms of areas showing both capital appreciation and decline.

Firstly, looking into the areas of growth it is interesting that Wigston (LE18) has seen the highest capital appreciation in the last 12 months followed by the area with postcodes of LE7 with the year on year growth of 11% and 10% respectively. It is amazing that there have been a huge amount of sales in these locations as well. Even higher volumes are seen in LE2 covering the area from the University of Leicester to the Leicester Airport and Little Stretton as well as LE3 covering the South West of Leicester where sales have reached around 3,000 sold in the last 12 months.


It is also important to understand where the property market is declining and Abricko can help you with that! Surprisingly central Leicester (LE1) has seen the biggest decline of property prices in the last year, where the prices in the outskirts have been affected much less.

In summary, Leicester offers some good opportunities for property investors in certain locations represented by our data above.


Liverpool

The Liverpool property market is said to be thriving, with investors from outside the UK making use of Liverpool rental returns. What is attracting investors from foreign countries to the Liverpool market? Let’s find out!

The biggest growth in property prices has been recognised in Seaforth and Litherland (L21) achieving a 16% increase in property prices in the last 12 months. The second place regarding capital appreciation goes to the location covering Ormskirk to Rufford (L40) with year on year growth achieving 14%. Capital appreciation in other areas in Liverpool has not been very dramatic but showing a healthy positive increase in sold property prices ranging from 3% to 13%.

Of course, when investing in property it is also essential to know which areas to avoid. Local knowledge can surely be invaluable.

That is why we also wanted to share the locations in Liverpool that have been showing a decline in the property market. While there have been over 1,200 properties sold in L3, the very heart of Liverpool, prices have plummeted by -14%! A recognisable depreciation has been also determined in postcodes such as L11, L10 and L15 with prices showing a -13% and -10% decline respectively. Is it because of the pandemic only or the property market is to be avoided in these locations?

The data shows depreciating property market in quite a few locations, however, with further due diligence some very good opportunities may be identified.



London

London property market is the most buoyant but also a tricky nut to crack. This is not only because the property prices are so high and the yields are low but also because there are a number of property sub-markets. Of course, London is best known for amazing capital appreciation which benefits many landlords in the long run. Thankfully, Abricko can help identify the areas where appreciation is the highest!

The staggering growth in sold property prices has been identified in E20 postcode representing 41% growth! Nearly a thousand properties were sold in this area alone and this could be a fantastic opportunity for property investors going forward. The second place in relation to growth in property prices goes to Highbury (N5) with another fantastic number of 20% in capital growth with 578 properties sold in the area. According to our data, the market trend is showing fantastic returns in London’s top 10 postcodes covering areas such as Chelsea (SW3), Lee and Chinbrook (SE12), North Kensington and Ladbroke Grove (W10) and others with capital appreciation ranging from 10% to 17%.



In comparison, as in every city or town, there are places where property prices tend to go down. Abricko data shows the biggest decline in property prices showing a -20% drop is in SE1 postcode, which covers the areas of Waterloo and St Saviours Estate. The second place in the list goes to East Finchley and Fortis Green (N2) showing -18% drop in property prices in the last 12 months followed by NW7 postcode with a -15% decline.

Abricko data also determined that other areas in London have seen depreciation of capital reaching -14% to -5% and while this has been a significant decline, it may be a temporary fluctuation in the uncertain market.

Investing in London property is a business endeavour which involves extensive research and planning. Abricko can help investors make calculated decisions to make their money work for them


Manchester

Manchester is the last one of the 10 major cities that we have looked into in relation to the most recent market changes. Why investors are attracted to this city? House price growth, increasing rental costs, an ever-growing demand, and affordable prices are just a few of the reasons.

We have thoroughly analysed the data to show you which areas have seen the biggest growth and decline. Firstly, we have been pleasantly surprised that the top locations have shown 19% growths are Salford (M7) and the area covering Woodhouses to Failsworth (M35). This is followed by Old Trafford (M16) and Gorton area (M18) with 16% capital growth and postcodes such as M19, M6 and M4 with 13% increase in property prices during the last 12 months. Secondly, Manchester has seen a healthy capital appreciation in several other locations with 6% to 8% growth in prices. Investors looking to buy properties in Manchester have got a lot of opportunities based on the data we collected.

In comparison, there are a few areas to potentially avoid due to capital depreciation. These areas cover Atherton (M46) and Chorltonville (M21) where sold property prices declined by -7% in the last 12 months, while in postcodes as M28, M15 and M11 have seen a decline in prices ranging from -5% to -2%. Finally, the market seemed to have remained flat in central Manchester (M1).

A study by HSBC recently revealed that Manchester had become the second-best location in the UK for property investment, prompting more people to buy property in Manchester. With the data from Abricko, you may be able to get a better understanding of the market movements, which consequently could help many investors make better decisions.



To summarise, poor sold properties volumes in March April may have encouraged the current market movements in May. We have thoroughly analysed the data presented by using Abricko so that property professionals could use it to make calculated decisions. We have determined that there are several major cities, such as Manchester, London, Bristol and Birmingham, where capital appreciation in the last 12 months has been significant. We also determined locations with the biggest price decline in the last year showing depreciation reaching -20%. This is not something property investors could easily identify by looking through thousands of pieces of data available online.


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