The Best UK Property Market Investment Areas For Affordability
When thinking about investing in property, you will likely have set yourself a personal budget to stick to it. If you’re starting in the property as a beginner investor, you may not have a considerable amount of money available to invest, so will want to explore the best places to buy property for a low price. Even if you are not a beginner, and you are merely looking to build up your portfolio, affordability is still an essential element to consider. While affordability does not necessarily indicate a good investment, it is worth identifying the areas where property prices are lower before exploring their potential further. Here are some of the most affordable places to buy property in the UK.
it’s definitely worth identifying the areas where property prices are lower before exploring their potential further.
The Best UK Property Market Investment Areas For Capital Growth
Aside from generating regular returns in the form of rental income, part of the beauty of the UK buy to let investment is the ability to benefit from an attractive return on investment thanks to capital appreciation. Capital appreciation, or capital growth, is a term that is used to describe a rise in property values over time. The more your investment property grows in value, the more significant return you will have when you choose to sell the property further down the line. Therefore, when researching where to invest in property, cities with a high level of capital growth are essential. If you want to know the best place to invest in property, UK investments in the following cities should be top of your list.
Cities with high level capital growth are key.
London | Manchester | Birmingham | Newcastle | Lancashire | Southampton | Portsmouth | Edinburgh | Northern Ireland | Wales
A Worthwhile Venture For Selective Persons
Forecast For Strong Growth
Europe’s Youngest City
Unparalleled Business Destination
Dream Properties Awaits You
Stamp Duty Holiday Bonanza
The Buy To Let Property Hub
Great Choice for First Time Investments
New Film And Tv Studio Space Planned In Belfast
Buy In South Wales And Finally Be Your Own Boss
The Best Place To Invest In The Uk For Rental Yields
We’ve talked about affordability and capital growth, but what about rental yields? Rental yields are a significant factor to keep in mind when deciding where to invest in the UK. In the same way that capital growth dictates the level of return on investment that you will receive thanks to added value, rental yields indicate the amount of rental income you can expect.
For many investors, the best place in the UK to buy an investment property is an area with high average rental yields to ensure the most significant returns possible. Based on the average rental yields for each of our top eight buy to let cities according to Go Compare, here are the best places in the UK to invest in property for high rental returns.
The best place in the UK to buy an investment property is an area with high average rental yields
London | Manchester | Birmingham | Newcastle | Lancashire | Southampton
Portsmouth | Edinburgh | Northern Ireland | Wales
UK Property Market History
How Has The Uk Property Market Changed From 2018 To 2020?
The West Midlands region was reported as the highest performing UK region for house price growth in 2017, having risen by 5.2% on average. (Nationwide)
Rental returns were recorded as having decreased by 2.3% year on year. The lowest rental yields in the country were reported to be in London, the South East and the South West, where low yields have brought down the country’s average (Financial Adviser).
Liverpool, Leeds, and Manchester were named ‘ones to watch’ in the UK property market. Due to ongoing growth, investment, and regeneration, these cities were considered the best places to invest in property in 2018 (Buy Association).
Landlords in the UK were urged to consider Liverpool as the best place to buy property for investments. This is due to high yields in Liverpool’s L1, L6 and L7 postcodes (Telegraph).
Despite low growth rates, property prices in London see a slight improvement. In the twelve months to the end of June 2018, the annual fall in house prices reached 3.8%, which was less than the previous 4.2% decrease (Property Wire).
Savills predict that North West property prices will rise by 18.1% by 2022, while London will see an increase of 7.1% during the same period. Other regions expect attractive growth, with a rise of 17.6% predicted for the North East and Yorkshire, and 17% growth for Scotland (Buy Association).
Edinburgh’s property market displays strength, with the highest rate of house price growth in over a decade at 10.6%. Properties in the Scottish capital were also selling at a quicker pace compared to the previous year. (Financial Times)
Figures from Nationwide revealed that property prices in the UK had dropped by 0.1% in February 2019. Experts remained hopeful that the housing market would improve; however, the fact that unemployment rates were falling, wage growth was increasing (Mirror).
An analysis revealed that the number of property sales in the South of England had decreased by 13% since 2015. During the same period, however, sales in Northern England had grown by 6% (Independent).
Due to its thriving university scene, Newcastle was named the best university city in the UK for property investment, followed by Nottingham, Leeds, Sheffield, Manchester (Property Investor Today).
Reports showed that there is a demand for properties in Manchester due to a 117% growth in the number of people moving to the city in July 2019 compared to the previous year (Buy Association).
An updated Money guide to the best places to invest in property in the UK for 2019/20 was released, showcasing Liverpool as the best location for buy to let yields with six postcodes making a list (Buy Association).
Savills predicted that over the next five years, property prices in the North West would grow six times faster than that of London. In the same report, it was predicted that the number of first-time buyers in the UK would drop following the withdrawal of the Help to Buy Scheme (Property Industry Eye).
After Boris Johnson’s win at the general election on 12th December, property experts had predicted a boost in the UK housing market thanks to increased certainty (Your Mortgage).
The North of England remains the best area for buy to let rental yields due to demand outpacing supply during the final quarter of 2019 (Landlord News).