Every investor wants to be sure they’re making the right decision with their next investment, and location plays a big part in the success of any property venture. Certain areas of the UK are more prosperous than others when it comes to the housing market, with more opportunities and potential found up North compared to in the South. This guide takes a look at some of the UK cities with the most worthwhile prospects for investors, along with details on where to avoid.
The best: Liverpool
Liverpool has come a long way since decades ago, when the city was faced with economic struggles and little hope for the future. Today, Liverpool is one of the best cities in the UK, with a reported population of around 489,541 in 2017 and the fastest growing city centre population. The appeal of Liverpool for buy-to-let investments lies heavily on the affordability of property in the city, along with attractive rental yields reaching as high as 11.79 per cent in some postcodes. Those investing in Liverpool property can expect the best value for money compared to a lot of other UK cities like London, along with a rich culture and attractions, and lots of potential for capital growth.
The worst: London
For those seeking investment opportunities in the UK that are worthwhile, profitable, and affordable, London should generally be avoided. Though London has plenty to offer in terms of tourism, attractions, business ventures and education, the property market in London is one of the least lucrative in the UK as of late. High property prices and decreasing rental costs have resulted in some low rental yields of 3.7 per cent on average when it comes to buy-to-let. Not only this, but the type of property that normally provides investors with the best returns is less in demand than in the past. London property demand has diminished in recent years, with demand for more high-end properties having decreased since the time of the Brexit vote. The most in-demand type of properties in London are now reported to be based in the more affordable neighbourhoods and boroughs of the city.
The best: Manchester
Another thriving North West city, Manchester is proving itself to be a great area for property investors to get on board with. With plenty going on when it comes to nightlife and attractions, paired with a growing business scene, it’s no surprise that more students and young professionals are heading to the city to live, work and learn.
Manchester has a population of around 99,000 students, boasting the largest single-site university in the country. Records show that more people are choosing to leave London and move to Manchester as of late, which is certainly good news for investors who want to buy property in a city with demand coming from students and young professional tenants keen to stay in a high-quality city centre apartment. Property investment companies like RW Invest offer Manchester property investments with rental yields as high as 9 per cent, in prime city centre locations perfect for professional tenants.