Parts of northern England could see house prices rise by up to 2% over the Spring, according to a leading property expert.
Mish Liyanage, Chief Executive of the Mistoria Group, reckons the region will benefit the most from a “complex few months” in the market.
He expects this to lead to drops in some spots of the south and south east of England of around 1-2% in the coming months.
But Liyanage thinks Manchester, Liverpool, Bolton, Cheshire and parts of north Wales could see rises of that level.
DOWNWARD PRESSURE
He says: “The next few months will be complex in the market, and while regional variation is always a factor, I expect house prices to remain broadly stable through April and May.
“There are already signs of some downward pressure in the higher-value southern markets but we are seeing a relatively stronger performance in the North West.
“Some parts of the south and south east could see a percentage drop in prices. But demand for quality property is keeping values buoyant in key cities like Manchester, Salford, Bolton, and Liverpool, where yields remain attractive.”
NOT A CRASH
And he adds: “Overall, I see a modest price correction – not a crash – primarily driven by affordability constraints and tighter lending, rather than a collapse in underlying demand.”
Liyanage believes prices will remain resilient due to strong rental demand, infrastructure demand, and more affordable prices points.
While inflation is forecast to fall below 3% by May, the maintenance of the Bank of England base interest rate at 4.75% continues to dampen buyers’ appetites, leading to first-time buyers to turn to the rental market.
RENTERS’ RIGHTS BILL
He says: “Landlords and investors who adapt to the new compliance regime, utilise local market expertise, and invest in modernising their properties, will continue to see sustainable returns
“For landlords, investors and letting agents the months ahead are set to bring both significant challenges and emerging opportunities.”
Liyanage has also reflected on the impact of the stamp duty concession deadline saying it has focused the minds of buyers.
He says: “This has encouraged many to bring forward transactions. Higher borrowing costs and affordability pressures remain a big problem. Now we need to see how the market reacts when the concession is no longer available.
“Demand continues to be steady, particularly when it comes to the family home market with scope to work from home. Homes which are well priced and well-presented are still selling relatively quickly; while buyers may pause to assess financial implications, high-demand areas are likely to retain interest.”
