The UK property market continues to be a profitable and reliable option for any investor, whether this is your first venture into the world of buy to let or you are a professional portfolio landlord.
Perhaps the most important consideration for any investor is the question of location. Properly researching where to put your money can be the difference between a successful investment and one which fails.
To assist, we have looked at a whole range of factors and listed our two favourite UK property investment hotspots for 2021 below, as well as identified the market you should avoid at all costs.
Invest in Manchester property
Our first recommendation is Manchester. The city’s property market is that rare combination of well-known among investors, but still on an impressive upward trajectory. Affordable entry prices and a booming population complete the perfect picture for investors.
The forecast for Manchester’s property market in 2021 is extremely positive, with the rate of house price growth far above the national average and demand still shooting up. It is estimated that an additional 5,000 people are set to move into the city centre this year according to Manchester Council, that still won’t be anywhere near enough to satisfy demand.
In particular, we recommend the luxury city centre apartment market for any property investors looking at Manchester. The city has one of the UK’s fastest-growing economies and is particularly strong in the sectors most likely to attract young professional workers to the city. For example, Manchester was named the tech capital of the UK in 2020 following its tech sector seeing a 277% increase in investment over the course of 2019. Momentum such as this has put the city on the map, and house prices are being pushed up as a consequence.
For more information on makes Manchester a property hotspot for 2021, please click here >>
Invest in Preston property
The North West of England is the UK’s outstanding buy to let property market. The region’s cities enjoy growing populations, booming economies and huge amounts of public and private investment which are transforming them into global, 21st century destinations.
While the likes of Manchester and Liverpool are at the forefront of this charge, the neighbouring city of Preston is considered the next big thing by developers and property investors. Consequently, it might well be the most exciting up and coming property hotspot in the UK.
There is a huge amount of public and private investment underway which will continue pushing Preston’s momentum forward in the coming years. The £434m Preston, South Ribble and Lancashire City Deal has been described as a “landmark agreement” by the City Council and will create more than 20,000 jobs in Preston. Furthermore, local transport links will be improved to aid residents and businesses, and it is projected that the final economic benefit of this scheme to Preston will be more than £1bn annually.
For more information about why Preston is one of our 2021 property hotspots, please click here >>
Should I invest in London property?
London has historically been considered the UK’s premier buy to let investment market, but recent years have seen the capital lose that title. An unfortunate combination of rapidly increasing house prices and falling rental yields have taken London out of consideration as a long-term investment destination for most serious, long-term landlords.
The latest Rightmove Rental Tracker shows that rents decreased by 3.1% year-on-year in London over the course of Q2 2021. What’s more, this is the continuation of a long-term trend of rental yields falling in London.
Likewise, even London’s much-cited house price growth appears to be lagging far behind other more vibrant markets. The latest Cities House Price Index from Hometrack shows that house prices in the capital decreased 2.5% year-on-year - a poor comparison to cities like Manchester and Preston.
In the current climate, we cannot recommend investing in London property. The long-term trends are not as strong as they once were, and greater profitability – not to mention stability – can be found in regional property markets such as Manchester and Preston, as mentioned previously.
If you are interested in purchasing an off-plan property in the UK, get in touch with our team today who will be able to advise you on the best options. Click here for more information >>