“Location, location, location” is one of the most commonly touted phrases when buying a property. This is simply because it is one of the only constants in real estate. This is why, if you’re a landlord looking to purchase an investment property, the area you choose is so important.
So with this in mind, where are the best areas in the UK to invest in a buy-to-let property? What sets these areas apart?
Let’s find out.
Birmingham
Birmingham is a city on the rise. Thanks in part to years of development, and further development planned for the future, Birmingham is expanding in all the best ways. The city has struck a good balance between affordability and opportunity. As more and more people look to alternatives to London, Birmingham has become an excellent solution for those looking for everything a big city has to offer, without the expense.
Average rent prices have risen 30% over the last decade and are expected to increase a further 12% in the following 10 years. What this means is that your buy-to-let property is set to increase and deliver a great return on your investment.
Edinburgh
Edinburgh has long been viewed as a great city for property investment and this is still the case. Edinburgh is a city rich in culture and events and is one of the most livable cities in the UK. If this isn’t enough to draw people there, the affordability and the exponential growth of the city will. The rental marketing is growing and promises a reasonable average yield on investment. Although purchase price will be higher than in other Scotland locations, market demand is higher.
Property prices are expected to rise by roughly 12.33% over the next five years - welcome news to any investor.
Liverpool
Liverpool has several postcodes that are seeing excellent yields for investors. Some postcodes are delivering yields as high as 10%. This means you have a wide variety of areas, and properties to choose from when making your investment. The average purchase price is quite low, which makes breaking into the market much easier. However, this will, of course, result in smaller returns. The local government has recently invested heavily in the redevelopment of the city in multiple areas, which only increase the influx of renters.
The average property price is predicted to rise by roughly 8.45% in the next five years.
Bradford
Bradford is an excellent choice for entry-level buyers. The average asking price for properties is as low as £57,000, with return yields in some areas as high as 10%. However, it is worth noting that Bradford is much smaller than many of the other locations on this list. What this means is a lower demand for property thanks to the smaller rental market.
Glasgow
After years of coming second to Edinburgh regarding property, Scotland’s largest city is finally catching up to the capital. Rental demand and sales prices are both set to grow by more than 10% respectively over the next 5 years, there is serious growth potential in Glasgow. The city’s council has also committed to double the cities population by the year 2030.
With the average price of property currently sitting below £200,000, and an average rental yield of 5.2%, Glasgow is a city of opportunity for investors.
Sheffield
In recent years, a staggering £480 million has been redeveloping the shopping district in Sheffield. This is one of many developments that are contributing to the rise of this hub in the north of England. Sales prices are still very attractive and are expected to grow by over 10% in the next 5 years. All great news for investors.
Cardiff
The Welsh capital has long been popular with investors and it’s no mystery as to why. It has excellent transport links, offers a great quality of life to its residents, and has very attractive property prices for all investors. Thanks to the removal of tolls on Severn Bridge, more and more people are moving to Cardiff to access parts of England too.
Top postcodes in Cardiff have average property prices that are as low as £67000, with an average yield of over 7%.
Leeds
Leeds is an excellent choice for those who wish to see long-term returns from their investment. As a major city in the north of England, it attracts those looking for an affordable life in a larger city. Roughly 73% of all homes in Leeds are rented, which means there will be a consistent demand for rental properties in the area. Property prices are also more affordable than in larger centres in the north like Manchester.
Leeds also currently has an average rental yield of roughly 5.10%.
Choosing where to invest is always full of pros and cons but using this guide should help narrow down your options.
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