Do you want to invest in real estate in the UK? If the answer is yes, we have the top 12 UK cities with plenty of investment in rental property opportunities.
For most of the last 20 years, investment property buying has been on the rise in the UK.
Although residential property is expected to have its ups and downs in the short term, buying to rent is still an achievable investment in the UK in the long term. Furthermore, the UK population is growing and the average number of people per household is decreasing.
The way that rent-to-own and property investments make investors make money hasn’t changed much in decades, but the best location to invest has changed only in recent years. Gone are the days of London and the South of England offering the best investments, now it is concentrating on specific cities and areas in the North West and Midwest.
If you know where to look, you can get some great UK real estate investment opportunities. That is why we have compiled the best places to invest in UK property.
Top 12 UK Cities to Buy Investment Property
1. Birmingham
Birmingham is driven by incredible internal investment, massive infrastructure development and a projected population growth of 13.5 percent bringing the city’s population to 1.3 million by 2039.
The city has the youngest population in Europe, developing a talented pool of young professionals with the help of the five Birmingham universities.
The second city has the largest center for business, professional and financial services outside of London, and attracts large corporations.
This has only supported the growing demand for city living, with contemporary apartments in areas like the Jewelery Quarter, the harbor and downtown offering excellent rental returns, between 5 and 10 percent on average.
Birmingham is also home to the planned £ 700 million development for Paradise, the £ 1.5 billion regeneration of Birmingham Smithfield and Central Arena, providing new residential, commercial and leisure space.
2. Colchester
The oldest city in Great Britain is complete with Roman ruins, medieval buildings with wooden beams and is crossed by the calm waters of the River Colne.
With an arts center and the University of Essex nearby, there is no shortage of cultural activities on offer and the area also has excellent schools and boasts of good transport links.
London is just an hour away by train, while Ipswich can be reached in twenty minutes. House prices are steadily increasing along with increases in the rental market, making it a great place to invest.
3. Leeds
With a large student demographic and general population set to expand in the coming years, rental yields are more than likely to increase as demand grows.
Leeds also has a growing student population and an attractive nightlife, offering a variety of bars, restaurants, theaters, and cultural activities that make it a great place for young professionals in the rental accommodation market.
Furthermore, with property prices significantly lower than in London, many are weighing the benefits of selling in the capital and moving north.
4. Manchester
Recognized as the heart of the northern powerhouse, this city continues to impress, supported by an incredibly strong rental market and student population. Manchester is one of the UK’s hotspots for foreign direct investment, and one of the best in the UK for growth.
Manchester has the highest graduate retention rate outside of London, having reached 70 percent this year. This city is successfully taking advantage of the influx of young people to boost supply and demand for more rental properties.
Also note that there are enviable employment options within the city, with a number of educational facilities set up in the area, including salford’s mediacityuk and amazon academy.
Due to significant investment reinforcing its credentials, Manchester continues to perform consistently alongside Birmingham and Liverpool in the UK’s top areas for rental growth.
5. Warrington
Located between the cities of Liverpool and Manchester, Warrington is a key location worth considering when it comes to real estate investing. With the promise of new storage space, new jobs will be created and employees will search for a place to live.
This could be an ideal time to invest in property in Warrington, to accommodate those employees who may initially rent but settle and choose to buy, which could create a good level of capital increase.
Many investors are considering Warrington for investment properties in nearby Liverpool and Manchester because the more accessible property market and house prices in the city are considerably lower than its big city neighbors. This makes Warrington a great location to buy a home, especially for young professionals working in the cities or for those looking to start a family.
6. Liverpool
The report says that Liverpool was the fastest growing city towards the end of 2018. Liverpool is celebrated for its popularity with students, large-scale investment and regeneration of cultural touch points.
As one of the most popular destinations in the UK, it is no surprise that the former European capital of culture is one of the strongest purchase and rental investment hotspots in the UK property markets.
7. London
The projected population increase in this region is 15.4%, and many people see the capital as a desirable cosmopolitan city catering to all types of buyers looking for rental properties in the suburbs.
Recent report highlighted North West and West London as exciting prospects, following £ 4.5bn regeneration projects at cricklewood and brent cross that generated approximately 7,500 new homes, services and infrastructure for residents.
Further regeneration is also expected in areas such as Broadway and White City, helping to support the local economy and standard of living.
8. Stowage
Stevenage is a new town in Hertfordshire with good commuter links to london. Stevenage has seen a tremendous growth rate in recent years, with median home prices rising 58.5 percent over the decade. This city provides a direct rail link to King’s Cross, thus offering fast and convenient transport links to London.
Stevenage is directly switchable to Google’s new £ 1 billion home on king’s cross, with many job opportunities expected as a side effect.
9. Bracknell
Located in the heart of the Thames Valley, also known as the ‘Silicon Valley of the UK’, Bracknell is a coveted postcode by global tech firms including HP, Dell, Honda, Hitachi and Waitrose. Note that with incredible job opportunities and connectivity in the South East and London, unemployment in Bracknell currently stands at 2.5 percent and 86 percent of the total population is in active employment, 50 percent of which work in managerial or leadership positions.
Although Bracknell was originally a new post-war city, it has undergone a series of dramatic transformations to become a very important hub for the tech sector, attracting the next wave of young and ambitious professionals seeking progressive digital businesses.
With £ 770 million committed to improving key transport, infrastructure, healthcare and educational programs while offering smart new residential, commercial and retail space, the most recent regeneration project has set a vision for Bracknell through 2032.
10. Northampton
Reports say Northampton “is now the only market in the country that has had capital gains of more than 10 percent in the last 12 months.” It has an attractive urban center and has 170 parks and other green spaces. Northampton’s popularity stems primarily from its status as a commuter destination.
Note that there are 96 trains a day between Northampton and London Euston, a journey that takes one hour, and 72 trains a day to Birmingham, which takes an average of 1 hour and 8 minutes.
11. Nottingham
This city boasts of an impressive 5.2 percent growth in property prices in the last 12 months. Known as the fastest growing city in the East Central region, Nottingham is spending £ 400 million on new developments that will ensure the city continues to prosper.
In addition, it is a hotspot for technological growth thanks to its central location and excellent transport links, and this gives the city a huge pool of talents to choose from. Nottingham is also supported by the two main universities, whose students make up about one eighth of Nottingham’s population.
This young budding population, almost 30 per cent of whom are between the ages of 18 and 29, means that there is a high demand for rental accommodation, making Nottingham a good city for property investment. The efficient and extensive tram network also offers opportunities outside the city center.
12. Coventry
In terms of house price growth, Coventry is still considered one of the best places in the UK to invest. Since the turn of the century, house prices in Coventry have risen by more than 250 percent. This city also offers landlords excellent rental returns, some of the highest in the country, making it one of the best buying and renting areas in the UK.
Note that the average net rental yield before tax is around 5.40 per cent, with only 5 other places in the UK coming ahead of Coventry. excellent returns are complemented by excellent occupancy rates, especially from students, as the city has two extremely popular universities that have a combined enrollment of more than 50,000 students.
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Author Bio: Jonathan is Founder of SPV Mortgages. He can help you find and secure the best limited company mortgage options to push your property investment dreams forward. As specialist mortgage brokers with over 10 years of industry knowledge, he has helped experienced landlords and first-time investors across the country; saving you time and money in tracking down the best rates.
