The Best Place to Buy Property in the UK -2022 Update
The past two years have been a whirlwind in more ways than one. Specifically, when it comes to the property market there hasn’t been a better time to buy a property than now! That won’t mean much to you unless we also tell you what the best place to buy property in the UK is.
So let’s get started first with the few factors that influenced the UK housing market as a whole:
- Stamp Duty holiday
- Low-interest rates
- Regeneration projects in key areas
- Reduced tax relief for property investors & second-home buyers (want to know how this can be avoided? Click here)
Now that we got that out of the way, here’s how 2021 affected the property market.
UK Property Market in 2021
Let us first say that 2021 was anything but easy…for most people. Laced with unpredictability and anxiety, nevertheless, property investors were an especially lucky bunch this past year.
According to the figures released throughout the year, both rental yields and house prices in the UK showed a very steady upward trend. The average asking prices in the UK grew by 9.8%, over the course of the year.
It’s also worth noting the significant changes in the rental market! Namely the 7.5% increase in rental prices across the country.
The important thing to note here is that even when faced with a downright challenging economic situation, the property market continues to shine as one of the best investment options in the UK.
Now finally, let’s answer the burning question of what is the best place to buy a property in the UK.
With its strong economic growth, attractive lifestyle offerings and thriving business scene, Bristol remains one of the best places to buy property in the UK in 20221.
As a result of its popularity, house prices have increased at a rate not seen anywhere else in the UK. But why the sudden growth of interest, you might be wondering. Here are the top reasons why Bristol is still one of the best buy-to-let property investment spots:
- Long-term property growth
- Low number of long-term property vacancies
While average asking prices in Bristol increased 60% over the past decade, since the pandemic began house prices in the city have increased by almost £1,000 a month.
The search for space is driving demand for family homes, and prices for houses are rising faster than flats. The majority of sales in Bristol during the last year were terraced properties, selling for an average price of £346,466Semi-detached properties sold for an average of £369,660, with flats fetching £271,324.
Over the last year, Bristol house prices increased by 5%, reaching an overall average price of £360,070
With buyer demand hitting record highs in mid-2020, the north of England saw some of the biggest growth.
Leeds had the country’s second-fastest rise in house prices and with regeneration projects, huge employment opportunities, the demand for Leeds properties is continuing to grow.
Leeds was already at the forefront of the UK’s property market, and the pandemic has resulted in a shortfall in new housing being constructed. Through to 2026, JLL predicts the city’s house prices will increase by 13.5% making Leeds a city property investors shouldn’t ignore.
Rising areas of Leeds include Kirstall, where housing prices continue on an upward trajectory thanks to close proximity to the city centre. Burley has long been an area popular with students, and sitting between Kirkstall and the city centre, offers strong transport links and affordable housing for a decent return on investment.
With an average property price set at £217,725, it’s not the cheapest city for property investors, yet it was ranked as 8th for UK’s rental yield and 6th for growth opportunities.
The largest economy outside London, Birmingham’s growing population combined with a housing shortfall mean it is forecast to see one the strongest rental growths of any UK city.
Prices in Birmingham city centre are 0.7% higher than a year ago and while prices are expected to remain flat in 2021, in 2022, forecasts predict they will rise to 4%. According to JLL, the future forecast for Birmingham property also looks promising and from 2022- 2025 house prices are expected to see a growth of 19.5% – the strongest in the UK.
And if the Northern cities don’t suit your needs, Birmingham just might be the one, with its 51% growth in tenant demand in 2021.
With a likely increase in the option to work from home as a result of the pandemic, renters and buyers are increasingly seeking out areas relatively close to cities, yet with more space and larger square footage.
Just 30 minutes into London by train, Luton is a commuter property hotspot and the UK’s most popular destination for first-time buyers. With relatively low property prices and good potential for capital gains, the city is on the list of top locations for UK property investment in 2021.
With annual price growth of 5.2%, Luton properties offer a lucrative long-term return of investment for its buyers
An investment hotspot for some time, Manchester continues to be one of the UK’s best property investment cities. In addition, Manchester has been voted as the best place to live in the UK by the Global Liveability Survey.
Regeneration and ongoing investment continue to transform the city and Manchester stands among the highest economically performing cities in Europe.
In the past 2 years, Manchester saw the strongest change in house prices in the UK with a 6.5% rise and the average property now sitting at £210,534 and average rental yield at 8.46% (gross). Looking ahead from 2021 – 2025, forecasts predict Manchester to see the highest sales price and rental price growth of any UK city at 17.1% and 16.5%, respectively.
A world-class, internationally recognised city that attracts over £1 billion a year in investment, a Liverpool investment property can offer some impressive returns.
Liverpool came in second for capital growth in the UK and it’s also one of the most affordable places for property investment.
With relatively low house prices and high rental demand, the city continues to remain on one-to-watch property investment lists, and 2022 is looking promising.
Since sales started after the first lockdown, the city experienced a mini housing boom. Liverpool’s rental prices are set to grow by 3% in 2022, and over the next five years, property prices are expected to rise by 13.1%.
When considering the best place to buy property in the UK in 2021, many cities present the opportunity for investors to make a decent profit. With the reopening of the market and a surge in sales and purchases, investors should look to the longer-term investment potential while also considering the slight shift in what renters and buyers are looking for as a result of the pandemic. To find out more about the best place to buy property in the UK in 2021, contact our team.