Whether you’re looking to invest in property to supplement your income, as a main business or as part of your retirement plan, the potential to achieve strong returns is high in the UK housing market if you know where to look.<\/p>\n
Aside from location, other aspects you will need to consider are your overall budget – including factoring in any renovation costs – your long-term investment goals, your lifestyle and time available to manage your investment, and your preferences in terms of tenants or types of buy-to-let.<\/p>\n
Despite its small size, the UK has a diverse offering when it comes to its property market. Researching the pros and cons of each location can help you to decide where to buy.<\/p>\n
Manchester<\/a> is now one of the first places that springs to mind for any landlord looking to purchase their next property. The city is regularly recognised as a top destination<\/a> for buy-to-let as it can offer some of the strongest returns in the country. It is also one of the most exciting UK cities in terms of its regeneration efforts<\/a>, securing its future as a property hotspot.<\/p>\n Research shows rental prices in the city have risen by around 46% over the past five years, as tenant demand has swelled significantly. This was exacerbated by changing lifestyle trends in the wake of Covid, with a rise in the number of people moving away from the capital to achieve a better work-life balance and get more space for their money.<\/p>\n The latest ONS rental index puts rents in the city at \u00a31,317 per consecutive month (pcm), while the average property price is \u00a3249,000 according to the latest available figures.<\/p>\n Contending for the title of the UK’s ‘second city’, Birmingham<\/a> has also risen through the ranks to become one of the most popular places to invest in property in the UK in recent years. This is has been accelerated in no small part by the upcoming arrival of the new high-speed rail link from London<\/a> (HS2), with major redevelopment taking place around the sites of the new train stations at Curzon Street and Solihull.<\/p>\n Like Manchester, it has also increasingly stolen the limelight from London in recent years thanks to an influx of new businesses relocating there to avail of both cheaper commercial property prices and the growing talent pool living in around the city. The technology and life sciences sectors in particular have surged in Birmingham, putting it on the map as a leading innovation business hub.<\/p>\n Many seasoned landlords will have been around during the years when London<\/a> was the most prestigious and lucrative place to invest in property in the UK. Prices in the capital increased exponentially in the 1990s and early 2000s, with property investors making huge capital gains and excellent rental yields for many years, although the 2008 financial crisis had a deep impact on the market there.<\/p>\n Now, if you’re looking to invest in property in London, you may need to be more strategic<\/a>. It is the most expensive city to buy property in the UK, but rental values, while high, haven’t kept up, meaning yields can be lower. However, rental demand remains extremely high, and London is still one of the most sought after destinations internationally, which will continue to support the property market.<\/p>\n Finding properties in areas that are penned for regeneration or transport link improvements is a strong strategy for ensuring positive overall returns, as well as focusing on locations where tenant demand is likely to remain strong.<\/p>\n The South Yorkshire city of Leeds<\/a> is known for its top universities as well as its thriving knowledge-based sectors, including financial and professional services, digital and technology, and life sciences. It has recorded strong house price and rental growth in recent years thanks to swelling demand from buyers and tenants alike, and is undergoing some significant regeneration including the South Bank project and Holbeck.<\/p>\n Because of this, investors buying in the city tend to enjoy strong rental yields and good prospects for capital growth. New developments around the city have also increased the appeal and choice when it comes to off-plan new-build property investment<\/a>, which is shaping the market when it comes to tenant preferences too.<\/p>\n Leeds has a younger than average population, with an average median age of 37 according to the latest Census information, compared with the UK average of 40. This is a key marker for property investors to consider, as it means there is a large potential pool of tenants from students to young professionals.<\/p>\n Liverpool<\/a> is one of the most affordable yet high-yielding places to invest in property in the UK. It has a high student population, but has become increasingly popular among young professionals in recent years who are drawn to the city by its strong jobs prospects, cultural heritage and excellent amenities.<\/p>\n The Liverpool Waters<\/a> project, which now extends across the Mersey to the Wirral Waters regeneration<\/a> scheme, has proven to be one of the most popular investment schemes in recent years for the city. The complete redevelopment of the historic docklands area has already created hundreds of new homes and amenities, while the area has also been granted enterprise zone status attracting more businesses.<\/p>\n Over recent years, Liverpool has regularly been listed as having the highest yields in the country, with consistently strong rental demand combining with low average house prices to generate some of the strongest returns for buy-to-let landlords. Prices also continue to rise faster in Liverpool<\/a> than many other cities, boosting its capital appreciation prospects.<\/p>\n Property portal Zoopla released a report<\/a> earlier this month that honed in on the places in the UK producing the highest rental yields, highlighting the importance of this aspect for anyone looking to invest in property.<\/p>\n According to the report, gross rental yields have increased over the past year across most of the country, with rents climbing at a faster rate than house prices. This makes factoring in yields even more crucial to the overall success of an investment.<\/p>\n By city, the highest yields can be found in Sunderland, Aberdeen and Burnley, which all recorded average gross rental yields of more than 8%, compared with a UK average of 5.8%.<\/p>\n Zoopla also noted that all of the top 17 cities in the UK for yields were based in either Scotland or the North of England, with southern cities sitting at the bottom. While this is of course only one aspect when looking to invest in property, it can give buyers somewhere to start.<\/p>\n By region, the winner was the North East, with average rental yields of 7.9%. This was followed by Scotland (7.6%), the North West (6.8%), Wales (6.5%) and Yorkshire and the Humber (6.5%). London has the lowest gross yields at 5.1%.<\/p>\n","protected":false},"excerpt":{"rendered":" With consistently strong rental demand, stable and rising house prices and competitive mortgage rates, the underlying allure of the UK housing market remains strong. We look at some of the top locations to invest in property. Whether you’re looking to invest in property to supplement your income, as a main business or as part of… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":6031097,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4,2,59,6],"tags":[83,748,17,37],"class_list":["post-6101738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-buy-to-let-landlords","category-trending-news","category-uk-housing-market","tag-investment-property","tag-location","tag-property-investment","tag-uk-property"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/6101738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=6101738"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/6101738\/revisions"}],"predecessor-version":[{"id":6101739,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/6101738\/revisions\/6101739"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/6031097"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=6101738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=6101738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=6101738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Birmingham<\/h3>\n
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London<\/h3>\n
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Leeds<\/h3>\n
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Liverpool<\/h3>\n
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Where to invest in property for top rental yields<\/h3>\n