The mantra for 2019 when it comes to property investment seems to be making it Brexit-proof. While we still don’t know the likely outcome and investors may be worried, finding the right regions to put your money into is still as important as ever.
The key factors remain, therefore, when you are seeking a property in England that will give you a strong return. You should be looking at areas which have younger populations, growing job prospects and the prospect of future development. That may mean heading out of London for many investors and looking for bargains in slightly less well-trodden regions that have plenty of potential.
Many of these are currently in the Midlands and in the North West and East. Areas like Bradford, Manchester, Leeds and Liverpool are all certainly worth taking a closer look at. Here we take a look at the best property hotspots for the next 12 months.
The North of England is increasingly viewed as a profitable area for investment and in many areas, you can get quickly start to build a really strong portfolio. Bradford is a fairly large town that’s ideally placed just a few miles from Leeds, and is cheaper to invest in than its slightly more “upmarket” neighbour. The area, in general, is starting to undergo significant regeneration which is an important marker for investors. Back in 2018 £75 million was committed to a number of city centre regeneration projects (with a masterplan for 2018-21) in order to attract the “urban entrepreneurs” of the future to the city.
There’s plenty of charm when it comes to the existing building stock too, with many properties that are likely to appeal to professionals who want somewhere low cost but attractive to set up home. Much of the beautiful gothic architecture remains, often converted into affordable apartments that could make for an excellent investment. In fact, Aspen Woolf have a number of such opportunities available in beautiful old buildings that are currently being refurbished.
You can still pick up one bedroom flats for between £40,000 and £60,000 if you select the right location and you can find a lower end terrace for around £70,000 in some areas. The town centre is probably your best choice at the moment and while there are some locations you may not want to buy just yet, these are well worth keeping an eye on as development progresses.
From the doldrums of the 80s and early 90s, concerted regeneration and business investment have made Liverpool a pretty good choice when it comes to property investment. It’s a city with a fairly strong, younger population under the age of 30 and property prices have increased by around 25% in the last five years. Areas such as the Waterfront and city centre have been transformed over the last two decades and it remains an attractive location for creative industries such as art and music.
There is a growing young, highly professional workforce occupying the city centre and they’re mostly looking for long-term rentals. With a booming economy, it’s a surprise that house prices still remain some of the lowest in the UK. According to Zoopla, the average price of a property in the city is £173,000 with values rising 24.48% in the last five years.
Not far from Bradford is Leeds. It’s a thriving university city that has a significant student population and that alone should make it attractive. There’s a fair amount of gentrification going on here but it’s still not too late to get on board and, if you hunt around, there should be some solid investment opportunities to take advantage of that will give strong returns.
For buy to let landlords who want to invest, there are no less than three universities in the city and there are potentially good yields with even with the average semi-detached prices at a shade just over £200,000. According to Right Move, house values have risen 6% in the last year, which is not bad when most people are worrying about a static market. Combine that with a competitive rental market and you have the best of both worlds.
Like its near neighbour Liverpool, Manchester is a great location if you are looking to invest in property. With a population of over a half a million, there’s also a large student market looking for somewhere to stay. The city is home to a sizeable professional population who are also searching for high-quality accommodation. It’s a region that hosts major sporting and cultural events, all of which attract people from not only the North West but from far-flung reaches of the globe.
Often tagged as the London of the North, there has been a lot of investment infrastructure, particularly in areas like Salford Quays and it’s now a really cosmopolitan location that has a lot to offer.
The house prices are changing quickly and the Evening Standard reported last year that values had risen by 34% in the last three years. There are still areas where you can pick up a bargain in the city, particularly in the suburbs. The widening gentrification means you can expect decent returns if you get on board at the right time in the right area.
The Midlands have always been a strong area for property investment and it’s no surprise that Birmingham is near the top when it comes to UK hotspots. With a larger population than most other cities outside of London, property prices have grown by nearly 30% over the last five years.
Like Manchester, you’re looking at another fairly young population with a 65,000 strong student population to boot. The key factor is that the students tend to stay on in Birmingham more than other cities which means there is also a growing and sustainable population of new professionals. The potential for growth with the developing HS2 means that Birmingham is less than an hour and a half away from London.
The average house price according to Zoopla is just a shade over £200,000 but heading out to the suburbs can reveal some better deals. Particularly good buy to let hotspots can be found in areas like Edgbaston, Holloway Head and Erdington.
Finally, not far from Birmingham is Nottingham. This is a city that will also benefit from the development of the HS2 rail link and has a thriving, fairly young professional population. There’s a decent student population too but also families looking to rent in many areas of the city. Still relatively cheap property prices mean that this is a good area to get in at the initial stages of development and which could deliver great dividends if you invest wisely.
The average property price is just over £207,000 with a 28% increase in value over the last 5 years. For rental income and returns, it compares favourably with cities such as Liverpool.
If you are considering buy to let and other investment properties in locations such as Bradford, Leeds, Liverpool and Manchester, contact the professional team at Aspen Wolf to find out how we can help.