UK house prices could increase by an average of more than 30% in the next five years according to according to a study by property portal Rightmove – adding further pressure to first-time buyers.
Perhaps unsurprisingly the report suggested the largest increases would be in the South East with an anticipated rise in values of 37.3% with Southampton, Luton and Brighton identified as the top three property hotspots. Values in the north west were expected to grow the slowest at their rate with an average 24.3% rise predicted. The report singled out West London, Carlisle and Lancaster as the slowest areas for growth with Manchester ranked fourth with an expected increase of 18.8%.
The report comes as the Royal Institute of Chartered Surveyors (RICS) announced values in many parts of London were dropping thanks in part to falling number of prospective buyers.
So what does this mean for first-time buyers?
LPC Living, the regeneration developer owned by the Pervaiz Naviede Family Trust, specialises in affordable homes across the north west. By working in partnership with local authorities the company is able to create innovative solutions for brownfield sites having completed schemes in Salford, Manchester and Liverpool.
Scott Neal, marketing manager, said “While we can look at historical housing data to make predictions about the future potential for growth the truth is no one has a crystal ball. Of course, first-time buyers should consider the potential for values to increase but we think the main priority should be finding a home which will be able to adapt as your circumstances change. This could be the potential to extend the property in the event of wanting to start a family or being able to let a spare room to increase your monthly income”.
Buyers should also consider the ability to add value to a property through renovation and home improvements. This was the approach taken by the Pervaiz Naviede Family Trust’s first schemes which included the refurbishment of a number of 1960s tower blocks to create a wide range of luxury one, two and three bed apartments. One of the largest schemes was Lakeside (pictured) in Blackley, north Manchester where four tower blocks were converted into high-spec, city-style homes with prices typically starting from £80,000.
Scott added ‘While these schemes were on a much larger scale the principle is the same. When we looked at redeveloping these unloved buildings some people thought we were crazy and that tearing them down was the only viable future for the site. However, we demonstrated that these buildings can provide high-quality, affordable accommodation for first-time buyers and families.