Location can make or break a property investing strategy, so you must pick the right place before you start.
In this article, we’ll discuss some of the best cities for property investing, along with what makes them so unique.
#1 Birmingham
Birmingham is the second-largest city, urban and metropolitan area in the United Kingdom. It is one of the best places to buy properties in the UK for the following reasons;
Economic potential
Although London has always been the UK’s most productive city (from an economic point of view), it has been eclipsed by Birmingham in the last few years. The city’s 100,000 strong workforce is nearly as large as London’s, fuelling demand for properties.
For about five years now, Birmingham has been the fastest growing city in the UK for property price growth. In fact, most financial projections show it will provide better long term returns in contrast to London.
The commonwealth games
Birmingham will host the commonwealth games scheduled for August 2022. The event will attract over 1 million spectators, significantly boosting the local economy.
Demand
It is a popular location for students, young professionals, and other people moving away from the capital. This level of demand increases the rate of real estate appreciation, making property investment a profitable venture.
It is also one of Europe’s youngest cities. Over half the population is under 35 years of age. This demographic are more likely to buy homes commit to long-term buy to rent arrangements.
capital growth
Average property values in the city have risen by nearly 40% in the last decade, and much of that growth has happened in the last four years. This kind of market has enormous potential for returns.
Infrastructure development
Birmingham has made significant infrastructure investments, all of which will make it more attractive to individuals working, studying or just touring the UK. These projects include The Birmingham airport redevelopment project, A new high-speed train station at cursor street, and the Smithfield development project.
#2 Manchester City
Manchester’s property market is booming right now, and it’s not hard to see why.
Affordability
Manchester properties are relatively affordable when compared to other parts of the UK. While the city is not as affordable as its northern neighbours, buying a property won’t cost you as much as buying one in cities like London.
Growing house prices
Capital appreciation rates in Manchester City grew by 7% between 2020 and 2021. Property market projections suggest more vigorous growth between 2021 and 2025, making this one of the best times to acquire properties in the region.
Property market resilience
The UK has experienced significant economic uncertainty over the last few years, but Manchester has posted strong economic growth throughout.
Southern cities like London have struggled after the Brexit referendum in 2016. Many of them are yet to recover. But, Manchester’s property market has continued to thrive.
#3 Liverpool
Liverpool is an internationally-recognized, world-class city that’s drawing in over £1billion in annual investment. The biggest reasons to buy properties here are the economy and infrastructure growth.
Infrastructure investment
Liverpool’s infrastructure has benefited from a large private and public investment inflow. The city was recently overhauled in a £14 billion dollar project that saw the construction of a new cruise terminal and road infrastructure improvements. In addition, the city is upgrading its railway line through a project to double freight capacity.
Economy
Liverpool is also one of the fastest-growing economies in the UK, with past and future projects contributing significantly to its success. The Liverpool redevelopment plan has included projects like project Jennifer, the Liverpool ONE shopping centre and the 260million pound Anfield Stadium Renovation. All these projects have created jobs and established the city as one of the UK’s best destinations.
#4 Nottingham city
Nottingham is a small city that has attained tremendous growth in recent times. In fact, it was voted one of the best places to live in 2020 by the Sunday Times. Here’s why you’d want to buy a property there.
Economy
Like most cities in the Midlands, Nottingham suffered a significant decline across the 20th century, but it’s growing again. The city’s working-age population (about over 1 million) are starting businesses at a higher rate than the national average, and there are signs that this trend will continue well into the future. The city’s economy is expected to grow by nearly 15% over the coming years. Furthermore, at 6%, Nottingham’s rental yields are some of the highest in the country. These factors, combined with the city’s house price growth rate, will significantly increase property prices.
Employment & education
Nottingham’s universities bring in 70,000 students who contribute £542 million to the city’s economy every year. The city’s educational institutions also employ many of the city’s inhabitants.
All these factors are good for property investment
Transportation
Nottingham’s location in the Midlands puts it in close proximity to the rest of the United Kingdom, and gives it real benefits over most UK cities. You can access nearly 90% of the United Kingdom in four hours, so it’s a strategically important location.
#5 Bracknell
Bracknell is a large town in Berkshire county. The town is a prime location along the outer commuter belt. The biggest reasons to invest in Bracknell properties are the city’s optimal location, the rental market, and ideal infrastructure.
Location
Bracknell is the perfect example of a commuter town. Besides having transport links across the United Kingdom, it has trains to the capital in under an hour. This has made it a popular place to stay.
profitable rental market
Bracknell has relatively affordable property prices and above-average rents. Rental rates are about £1,956 each month, indicating significant demand. More and more people are moving out of London.
Infrastructure
Bracknell is currently undergoing its largest infrastructure redevelopment in the last ten years. The “Bracknell town centre 2032” will create a rich, diverse town centre with new cultural quarters, retail hotspots, and living apartments. The project will encourage inward investment, transforming the city into an investment hub and one of the most popular places for London leavers to settle.
That’s it for our list of cities you should consider for property investment in the UK. There are several other things to consider before you start, but we’re here to help! Our mentors and property investment professionals will take you through everything you need to know about choosing a property, acquiring funding, even building a portfolio. Join us today!
