If you are looking to invest in property in the UK at some point in the next year, then you will have a lot of things to consider in order to get the most for your money. Whilst the type of property and the price are all big factors, the location can be one of the biggest considerations that will help you to realise more bang for your buck.
Whilst traditional areas such as London as no longer the property cash cows that they once were, there are other parts of the country which are set to be incredibly profitable in 2023.
The property market is something which is always changing, so it is good to keep an eye on the right areas for growth in order to see the greatest increase over time and the healthiest and most consistent rental yields.
In this article, invest in property in the UK take a look at some of the areas which are set to be the top property investment hotspots in the UK throughout 2023 to make finding the location of your next investment that little bit easier.
Liverpool has been one of the UK’s biggest property hotspots for a few years now thanks to the terrific development that has been taking place there. With an average house price of just over £200,000 and a rental yield of 5.48%, it is clear to see that there is money to be made here for most property investors.
Known for its industrial and maritime heritage, Liverpool has been a great residential area for a long time, but it is now just as famous for is links to culture and sport, which has only served to widen its appeal. There has been significant development in the city which has increased property demand significantly, meaning buy-to-let investments and student accommodation is proving to be a good investment.
As the centre of the Northern Powerhouse, Manchester has been leading the way for property investors for some time now. Price growth in the last few years has been impressive, and prices are still expected to rise by as much as 28%, so now could be the perfect time to invest. The economy of the city has taken massive strides recently, as more and more big businesses decide to make Manchester their home.
This, in turn, has led to a boom in population too and so there is a high demand for all types of housing stock, from city centre apartments for young professionals, to student lets and family homes. With more rail projects in the area set for completion soon, Manchester’s tourism is set for a further boost, which will only add to its appeal.
Not all of the best property investments are in the North and Birmingham is leading the way not just for the Midlands but most of the UK too. It currently boasts average rental yields of 6.56% and has seen property prices rise by 17.445 in the last five years. With the Big City Plan and the Commonwealth Games all happening in the city, Birmingham is now firmly on the map.
It is proving popular for investors as the city is now attracting and retaining skilled workers like never before, and not only have rents risen by 30% in the last 10 years but they are set to continue travelling upwards by as much as another 12% in the next five years. The market is predominantly made up of on and two-bedroom apartments in the city centre, boasting a high standard of living without the London price tags.
Nottingham has not always been on the radar for property investors but it looks as though this is set to change. It is now a key area of investment and is currently much more affordable than many of the other big cities. Whilst the average rental yield sits just below 5%, some city-centre postcodes have seen rental yields of as much as 9% in recent years. It is predicted that the future long-term yield growth could be one of the strongest in the country, driven by having two major universities and a ‘super hospital’ in the city.
Believe it or not, Newcastle is actually the eighth largest city in the UK by population, but is still one of the most affordable, making it the perfect spot for a property investor. There are high rental yields to be enjoyed around the heart of the city and it has some of the highest graduate retention rates in the UK.
It is also now being recognised as one of the fastest-growing regions for new start-up businesses, which is starting to attract a wider range of people to live in the area. It is also home to a number of corporate headquarters and there are strong digital and education sectors which are all playing a part in helping the population of Newcastle to grow even further.
Leeds is another popular property investment hub in the North as 735 of the population here are currently renting. Leeds has one of the fastest growing economies in the UK and is hot on the heels of some of the European front runners as well.
Leeds has been responsible for attracting almost 10% of those looking to leave London annually since 2018, so it is certainly a great spot to look to put your money into for long-term rental returns.
With any type of property investment, it is important that you do your research thoroughly. We are living in changing times at the moment, so make sure you fully understand the area that you are putting your money into if you want it to be a sound investment.
There are a lot of developments in infrastructure and changes to the way that we live which means property investment now has a different landscape to what we might be used to, but this has opened some new and exciting doors for those looking to buy now.
This article was written by Mark Burns. Mark is a is the managing director of property investment company Pure Investor, who specialise in UK property investment and Buy-to-Let Property Investment.
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Millie is a perfectionist with a passion for property and writing articles. You’ll find her researching the latest housing trends and the newest up and coming areas worth investing in. Read more about Millie here.