Thirlmere Deacon: Property demand shifting away from London
Demand has been shifting away from London over the course of 2020 and into 2021 according to Stuart Williams, founder and chief executive of property investment company Thirlmere Deacon.
Williams added that the number of relocations is a trend that is set to continue.
He said: “Large cities away from the capital have seen increased interest and we have seen a boost in investor demand for properties across Manchester, Liverpool, Leeds and Birmingham.
“Location has been key for property investors during 2020 and this theme will continue into 2021.”
Recent research by Hamptons outlined that individuals leaving London bought 73,950 homes outside the capital in 2020, the largest number in four years.
London buyers bought homes worth a collective £27.6bn over the course of the year, the largest amount spent since 2007.
Deacon went onto explain that successful investors recognise the importance of purchasing property with a long-term view.
He said: “When they look at buying a property, they first consider where is this property going to be in five-10 years and aim to double the value and triple the rent.
“Unfortunately, there’s no crystal ball.
“Most mistakes are made in the property market when investors are trying to hit a goal over a short-term period.”
Deacon noted that looking long-term is essential when investors are purchasing a property.
He said: “Discerning buyers can confidently make well-informed purchases with the guidance of an experienced investment consultant.
“There’s always going to be opportunities. For example, the towns and cities in the north are continuing to lead the way on capital growth and yields, outside London.”
Manchester is a leading European business destination and has attracted more foreign direct investment than any other city in the UK outside of London.
Deacon said: “As one of the most established large cities outside of the capital, Manchester has attracted young professionals in high numbers; between 2002 and 2015 employment numbers grew by 84%.
“The economy in Manchester is growing at an incredible rate with no signs of slowing down.
“There’s always going to be money to be made. The fact remains that people will always need a place to live.
“So investors should stay positive and calm and keep looking forward.”