Buy-to-let prospects are very healthy in the UK property market. House prices are rising by 5% every year, giving property investors confidence to put their money on British soil.
However, to ensure you get the best from your investment property, it’s sensible to gauge where the best areas are for the highest yields and price growth…
Buy-to-let landlords are seeing major rental demand for properties anywhere within the Northern Powerhouse. Manchester is at the centre of this ambitious initiative, set to bring 55,000 jobs to the region by 2025. As such, the government is delivering £70 million of funding to regenerate inner city areas and redevelop brownfield land.
Residential developments in the city centre – as well as those in nearby areas like Salford and Trafford – are experiencing the best rental yields (5.55%) and high levels of price growth in the United Kingdom. People are flocking to the renewed commercial prospects, reminiscent of Manchester’s industrial heyday. Now, however, the economic boom is directed by services, transport and cultural activity.
Another star of the Northern Powerhouse, Liverpool is a gold mine for student and young professional lettings and buy-to-let opportunities. The L3 postcode is top of the tree for investment property, encompassing the city centre, waterfront and regenerated docklands as well as areas around the University of Liverpool campus as part of a 15-year growth plan for the city.
After becoming Europe’s Capital of Culture in 2008, there has been a surge of momentum in commercial creative roles, prompting many students to stay in the city after graduating. Expat buyers may want to take advantage of this rare, dynamic community, especially since average house values are just below £170,000.
In Birmingham, however, the average house price currently sits at £154,600, making it a cheaper location for buy-to-let than many of its northern counterparts (including Leeds and Leicester). This is only set to grow as well – forecasts indicate by about 20-30% over the next four years.
But it’s not just existing properties that are worth investing in. According to research conducted by Savills, there are currently 1,800 Build to Rent units under construction in the city, and 21,200 residential units either in the planning stage or being currently built. They point to huge levels of investment in the local infrastructure (such as the Metro network), the 2022 Commonwealth Games being hosted by the city, and the relocation of major businesses to the city amongst the chief reasons why development in Birmingham is on the rise.
Scotland as a whole is amongst the most popular places to rent in the UK. Edinburgh in particular is drawing the eye of investors. Not only has the city been ranked second globally for its famously good quality of life, Hometrack’s January 2018 House Price Index also showed that Edinburgh is the fastest growing UK city (with house prices up by 7.7% compared to a year ago) – closely followed by each of the cities we’ve mentioned in this article (each over 6%).
Property consultants JLL have forecasted that Edinburgh will see house prices grow by a staggering 22% over the next five years – making now a great time to invest.
Such results are hardly surprising as focus is pulled from the South. Liquid Expat Mortgages can help guide your investment property portfolio aims, showing you the areas with the most potential to achieve them. Contact us to start your investment property search in these areas before they’re snapped up.