The property market has never been entirely predictable, and when you are looking to make an investment it is important that you choose wisely. So, where are the hottest spots to put your money?
High London prices are now expected by all, but some areas of the capital are more popular than they used to be. Moving further north offers more bang for your buck, particularly in areas that are getting a lot of government investment.
The Northern Powerhouse has attracted a lot of investors in the last few years, and the biggest city to benefit has been Manchester. With vast regeneration and massive businesses such as Barclaycard and HSBC locating there, rental yields on Manchester property investments have soared to 7% in some areas.
Liverpool is also proving to be a strong contender thanks to the levels of investment it has received from the government. There has not been a major house price growth in the last ten years, however, it seems that it won’t be long until this happens, making now a very good time to invest.
The city has the fastest growing economy in the UK and massive transformation projects costing billions of pounds are creating new and appealing ways to invest in the area.
If the north is too far north, then Nottingham presents an attractive opportunity. Its central location has always given it a feel of convenience which will only grow when the HS2 development takes place. Nottingham is predicted to experience significant house price growth in the next decade, particularly in areas such as West Bridgford and Bingham. Transport in the city has been well developed, including a new tram system, and a growing student population means the city is ripe for investors.
The UK’s second city, Birmingham, also appears to be a property hotspot due to an issue of supply and demand. With not enough homes to cater for the strong rental demand, investors will find there are high rental prices to enjoy. HS2 will also have a dramatic effect here, with the city’s £90 billion economy.
HMRC and HSBC are amongst the businesses that are making Birmingham their home as they move away from the expensive London market.
Nothing will ever take away from the popularity of the capital, but over-inflated prices have caused many to look elsewhere. That has not stopped a number of London areas growing in popularity with Croydon coming out as a top investment opportunity. The increase in property prices in the area might have grown but they are still not keeping pace with the rest of the city. There are a number of new investments in the area which means it is only a matter of time until Croydon flats command the £1 million price tag that much of the rest of London already enjoys.
Choosing a place for UK property investment can be tricky, but thanks to a stable economy and good levels of government investment, the UK offers some terrific opportunities as areas which were once ignored now come to prominence.