The North is rising
A recent KPMG report pinpointed Yorkshire, the North West and North East as the areas expected to see the UK’s highest average house price growth over the next decade. As such it is no surprise to see big cities deemed as being part of the Government’s ‘Northern Powerhouse’ feature strongly in many people’s thoughts about the best places to invest in property in 2018.
Manchester has seen strong business investment in recent years alongside regeneration projects such as Salford Quays, Media City and the Northern Quarter. This all improves the economy, the standard of living and of course the property investment market. Like London, Manchester is also surrounded by many attractive ‘commuter belt’ conurbations such as Fallowfield, Salford and Chorlton, with house prices rising rapidly and rental yields twice those available on average in London.
Leeds has made similar strides from being labelled as a traditional industrial eyesore and is now a stylish and modern, cosmopolitan city and a prime retail and cultural destination. With a thriving student culture and a fertile city centre living movement, Leeds has a strong rental market and capital appreciation. Meanwhile, the impending HS2 project can only improve its accessibility and attraction.
With house prices so strong in many areas of the UK, it is not surprising that the rental pool is very high as people struggle to get on the property ladder. As a result, some major towns and cities in the UK represent a more attractive investment option for those looking to buy-to-let.
Glasgow has a very young demographic, with 28.5% of its population aged between 21-35. So as a natural consequence, Glasgow enjoys some of the best rental yields in the UK at 6.9%. Newcastle has suffered somewhat from a media perception of a distant northern outpost with little class, but it has quietly become a fast-paced city with charm and character. With good transport links via the Metro it is an affordable option for young professionals and hence will appeal to those looking to increase their buy-to-let portfolio, rather than homeowners who may not see a great return from a slow 0.17% rise in property prices in the last three months of 2017.
Liverpool and Nottingham represent perhaps the best opportunities to make money from the buy-to-let market. Buy-to-let specialists Private Finance ranked them joint first as the best performing rental yields in the UK, both offering returns of 6.2%, after mortgage costs are factored in.
Long term profit for private landlords is a fine balancing act between careful investment and choosing the right location. Both Liverpool and Nottingham offer affordable properties, in an improving market and with strong rental demand, and hence they certainly carry less risk for those looking to invest.
1. www.moneytothemasses.com "When Will Interest Rates Rise - latest predictions"
2. www.cml.org.uk "Are Mortgage Borrowers Prepared For Rising Interest Rates" by James Tatch
3. www.onetouchinvestment Where Are The Best Places To Invest In Property UK 2018"
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6. www.thepropertyhub.net "Property Investment Hotspots 2018"
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8. www.thepropertyhub.net "Property Investment Hotspots 2018"
9. www.onetouchinvestment Where Are The Best Places To Invest In Property UK 2018"
10. www.thepropertyhub.net "Property Investment Hotspots 2018"
11. www.thisismoney.co.uk"Where Should You Invest In Buy-To-Let in 2018" by Sarah Davidson