If you are a lover of browsing through the for sale ads on RightMove, or Zoopla, then you probably have a good idea about the prices in different areas of the UK. But if you’re searching because one says you’d like to own an extra property, or you’ve been looking for property investment companies to see what your options are, then you have likely wondered where the best places are to buy a property.
Most people who buy more than one property do so with the idea that they will be renting the property out for extended periods of time. The alternative, which is becoming more common, is to buy a property to use as an Airbnb style rental.
Either way, there are some areas in the UK that are likely to bring you a higher than average rental income.
Bristol
By the end of December 2021, Bristol had taken the top spot where landlords saw a higher return on investment. It has a high volume of renters, and the house price growth has been healthy too.
Over the last ten years, Bristol has been shown to have a low range of vacant properties, and the house prices have rocketed in some areas from 200,000 to 350,000+.
With the high demand for rentals, it is a great place to invest.
Birmingham
Outside of London, Birmingham has a large economy and an ever-growing population. The demand for rental properties is exceedingly high. The average waiting time for a council property can be in excess of ten years, which means private renting is more common.
A property in the city centre will have a higher than average rise in prices, and it is predicted that over the next year there could be as much as a further 4% rise.
In 2021 there was a 51% tenant demand – making it an ideal starting point for your first poetry investment. Not to mention that you can get almost everywhere in the UK in about 4 hours by car here.
Liverpool
What makes Liverpool a great investment is that it sees over £1 billion a year in investments and has plenty of opportunities. Interestingly even though it is receiving such large investments, the property in Liverpool is classed as some of the most affordable when it comes to property investment.
Over the next five years, it is estimated that Liverpool will see a property increase of 13.5%, with 3% of that to happen by the end of 2022.
Leeds
Many of the northern cities in the UK experienced record high growth. Likely due to the many regeneration projects, funding and investments in the city, Leeds is expected to see growth similar to Liverpool.
The areas closest to the city centre are seeing the bigger rises, as well as the areas that are the most popular with students.
While Leeds is not the cheapest for investors, it ranks highly for rental yield. Coming in 8th in the UK rental yield.
Of course, it’s not just the housing market which is great for investments – you might prefer to put your money elsewhere: Investments 101 – Accidental Hipster Mum.