Like Nigeria where the real estate sector crept out of recession in the first quarter of 2019 despite election fears and slowing economy, property prices across regional markets in the UK grew by 0.9 percent in the 12 months to May 2019 despite Brexit concerns and the impact on the country.
This is good news for investors, especially for the many Nigerian investors who have made significant investments in the country’s buy-to-let market, particularly in the London market. The recorded growth is an assurance that Brexit may not affect investments in the way many have thought.
In Nigeria, the real estate sector recorded 0.98 percent growth to pull out negative growth territory where it had been in the last 12 straight quarters. The sector had been recording negative growth until the last quarter of 2019.
Between April and May, the average price of a property across England, Scotland and Wales increased by 0.9 percent, matching May 2018’s growth of 0.8 percent and broadly in line with the 1.0 percent average over the last two years.
On an annual basis, prices are just 0.1 percent higher than the same period last year, lifting from the 0.1 percent year-on-year decline in April.
Despite the general slowdown in prices, four regions – Wales, the East and West Midlands, and the North West – have reached new record-highs for prices of newly-marketed homes.
Prices in Wales jumped 2.1 percent between April and May, and are up 4.1 percent compared with last year, whilst the East and West Midlands report similarly high year-on-year growth of 2.5 percent and 3.0 percent respectively.
In the North West, prices increased by 0.7 percent in May, bringing the region’s annual rate of growth to 2.1 percent, whilst property prices in the North East were 2.6 percent higher than in 2018.
Rightmove’s director, Miles Shipside, explained, “these increases are the result of a combination of strong demand, buyers’ affordability headroom, and a continuing shortage of suitable properties.
“Agents in these areas say that Brexit concerns are not really on the agenda of home-movers; they are more concerned with satisfying their housing needs”.
Continuing, he said, “activity breeds activity and a greater choice of fresh properties in these record-setting regions helps to spur buyers into action, especially if they have a property to sell. This in turn adds another new listing that might then tempt another buyer, in a virtuous circle.”
However, higher housing costs are deterring many people employed in the UK from applying or accepting a new job, according to research by Strutt & Parker.
CHUKA UROKO
