Although the last year has been a tough one for a variety of reasons, the UK property market has remained as reliable and profitable as ever. According to data from Zoopla, demand for rental property in January was 21% higher than the same month last year. So, let’s waster no time and dive straight into some of the best places to invest in property (UK) in 2021…
Start off your search in Manchester
Manchester is an investment favourite for buy-to-let property in the UK. The city brings together a range of people who are all looking for different things, whether it be entrepreneurs looking to build their budding businesses or students who are optimistically looking to start their careers.
House prices in Manchester have been some of the best in the UK, in terms of price growth, over the last few years. This is a testimony to the growing economy, population and infrastructure in the Greater Manchester area with large developments in historic areas such as Stockport.
On top of the history and budding economy in this city, the area also boasts attractive house prices, with Pure Investor reporting average housing prices of up to £303,204 and average rental yields of 5.32%. All of these factors make Manchester an excellent choice for anyone looking to invest in UK property.
Check out the offering in Nottingham
Nottingham boasts strong transport links with direct access to many key destinations. The city sees an average price for property of £214,435 which is comparable to that of Birmingham. However, average rental yields sit at just 4.66%. Despite this, some areas, such as the city centre NG1 postcode and NG7, can still reach yields of up to 9%.
The city hosts a large population of students (upwards of 60,000 at any given time) attending 2 universities that are situated in the area, which means student property is in high demand. On top of the 2 universities, Nottingham is also home to Queens Medical Centre which is a ‘super hospital’ employing more than 6000 medical professionals and medical students, causing property for young professionals to be in high demand also.
Look at Liverpool
Liverpool is also seeing a huge investment of £5.5 billion in the form of the Liverpool Waters scheme which is set to deliver large amounts of new public space and create 17,000 jobs making Liverpool a more than ideal location for investors looking for a lower price-point in a rapidly growing economy.
While average prices for housing in Liverpool is not as high as other previously mentioned on this list, sitting at around £186,500, the renters market is as strong as ever sporting average yields upwards of 5% with certain postcodes, for example L7, being known to deliver yields up to 10%.
Don’t forget to invest in Birmingham
Birmingham is the UK’s second largest city and has been the top performer in the country since the Brexit vote in 2016 with this trend looking like it will continue throughout 2021. Various developments in city, including investment into transport and infrastructure, have made the city an attractive option for large companies, for example Deutsche Bank and PricewaterhouseCoopers, to set up their UK base in ultimately bringing in a wave young professionals looking for property with them.
According to Property Insider, the average price and rental yields in Birmingham are strong too, with the average property price sitting at more than £200,000 and rental yields averaging 5.4%. In addition, average rents have risen by 30% in the last 10 years with predictions for them to rise a further 15.9% by 2025.
Search for BTLs in Sheffield
Sheffield has seen almost £500 million invested into the development of the city’s retail district and improvements to amenities in the area. As a result the central areas of the city can see rental yields of around 7% depending on the postcode. Coming out of lockdown, Sheffield appears to be a top contender in the property market with data from Zoopla showing that property prices have increased by more than 7% in the last 12 months.
Property investment expert, Mark Burns, is the brains behind this article. Mark is the managing director of property investment company, Pure Investor, who specialise in UK property investment and Buy-to-Let Property Investment.
Now you’ve discovered the best places to invest in property (UK) in 2021, what are you going to do next? If you’re a property investment geek, while you’re here be sure to check out the rest of our advice and tips on property investment and Buy To Let.