Want to get started with UK property, but need help figuring out where to look?
Property investment is probably one of the oldest and most well-known forms of generating passive income.
In the UK, right now is one of the best times to get involved.
Property prices in the UK are set to steadily increase on average by 6.2% over the next five years, with specific regions like the North West expected to see a growth of around 11.7% by 2027.
While the ongoing cost of living crisis, recent spats of political uncertainty, as well house prices expected to fall by an average of 10% in 2023 may set off alarm bells, this is probably one of the most best times to consider investing in real estate.
House prices at the moment are much lower due to the drop in house prices overall.
Therefore, those who can afford to invest in property could actually see significant returns – especially in conjunction with a thriving rental market.
But what are the best places to invest in property in the UK?
Let’s get into it!
Liverpool
In terms of property investment, Liverpool is one of the most well-regarded cities on this list.
Look on any Top 10 lists covering investment cities, and this maritime city is likely to pop up somewhere.
Offering some of the highest price growth and lowest prices, Liverpool is steadily growing some serious demand in the market at the moment.
Previously a victim of severe economic decline, the city is now a regenerative powerhouse.
Investment is rife in Liverpool, with the homeland of the Beatles essentially leading the charge when it comes to significant growth and affordability.
According to Zoopla, Liverpool is one of the best cities in the UK in terms of capital appreciation – seeing an increase of 14.1% in the last year and 32% across the last five.
Throw in a high population of young professionals, as well as the prospect of rising rental prices and a gross yield of 8.26%, and investors can expect to see some serious returns on their capital.
Manchester
Another popular investment spot, Manchester, is almost certainly one to keep your eye on.
Again, with prices in the North West set to rise by 11.7% by 2027, it’d be no surprise if this city continues to dominate the market and investors’ best-of lists.
Like Liverpool, Manchester was also subject to major rejuvenation projects in the last decade, with house prices skyrocketing as a result.
In fact, a recent report has found that a significant discrepancy between the rate of supply and demand of new housing in the area has caused rents to rise exponentially, leading to one of the fastest-growing rental prices in the country behind the capital.
Also host to some of the best academic institutions in the country, as well as cementing itself as an international business hub, Manchester is a popular choice for many investors looking to take advantage of the booming professional industry – all of which again has led to rapidly-rising property values.
Also boasting top rental yields, with a gross figure of 7.56%, this city is another top contender for 2023.
Birmingham
Colloquially known as the ‘Second Capital’, Birmingham is a city that has something for almost every property investor.
With long-term capital growth on the menu for many properties, this is probably one of the top options for those seeking a strong retirement fund.
At the moment, the average price for a property in Birmingham is around £240,000. Noteworthy for its affordability, which is around £50k below the national average, this figure is 12% higher than the one from last year.
To compare, this is one of the highest bits of capital growth in the country, with Liverpool (11%) and Manchester (10.5%) just falling slightly behind.
Nottingham
Once more, offering some of the best rental yields, Nottingham is a popular choice for UK property investment.
Alongside some affordable property prices, it is quickly becoming a popular location for many to move to.
Home to over 50 business headquarters, such as Rolls Royce and EON, Nottingham is also home to one of the best employment sectors in the country.
Thousands of people move to Nottingham each year for work, adding to an already great buy-to-let market.
With a student population of 13%, a vital sector of the buy-to-let market, this makes Nottingham one of the most popular destinations for UK property investors in 2023.
Conclusion
As with all investments, to truly succeed, you must always have one eye pointed toward the future.
Whilst these cities represent some of the best to invest in right now, circumstances can fluctuate at any given moment. So, it’s crucial that you keep up to date with the latest in the world of property investment.
Follow the markets, track the latest population and growth data, and ensure that you’re putting your money in the right place.
And, with UK house prices expected to rise by 6.2% overall in the next five years, now, more than ever, might be the best time to get involved with property investment.
