The Best Place to Buy Property in the UK -2023 Update
The past few years have been a whirlwind in more ways than one. Specifically, when it comes to the property market. For that reson this article will be dedicated to the best place to buy property in the UK. But before we get to that here are a few factors which have heavilly influenced the UK property market in recent times.
- Changes to Stamp Duty 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)
- Rising interest rates
Now that we got that out of the way, here’s how 2021 & 2022 affected the property market.
UK Property Market in 2021 & 2022
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 that 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.
Property Market in 2022
At the beginning of 2022, average house prices maintained their rapid ascent, bolstered by a combination of factors such as low interest rates, a stamp duty holiday, and robust demand from buyers which outweighed supply.
The acceleration of property price appreciation experienced a gradual deceleration starting in August and by November, the pricing trend was notably more stable compared to the previous months. Simultaneously, the ongoing cost-of-living predicament instilled greater prudence in the UK property market. Notably, Chancellor Jeremy Hunt’s announcement in November to preserve the stamp duty cuts from the mini budget until March 31, 2025, and raise the threshold from £125,000 to £250,000, has acted as a catalyst for the homebuyer market. The tax relief has encouraged many to capitalize on the lowered taxes, thereby sustaining a high level of demand throughout 2023.
Now finally, let’s answer the burning question of what is the best place to buy a property in the UK.
Bristol & Property Investment
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 2023.
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:
One of the top reasons why Bristol is still one of the best buy-to-let property investment spots is its long-term property growth. While house prices in the city have increased at a rate not seen anywhere else in the UK, experts predict that the property market in Bristol will continue to grow in the long term, making it a promising investment opportunity for landlords.
In addition, Bristol has a low number of long-term property vacancies, meaning that investors are likely to find tenants quickly and easily. The city has a strong rental market, with high demand for both short-term and long-term rentals, particularly in areas close to the city centre and popular amenities.
Bristol Property Prices
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 city’s transport links are another major factor behind the surge in Bristol’s property market. The diverse range of property types available in Bristol is also attractive to investors. Whether you’re looking for a one-bedroom flat or a large family house, there’s something for everyone here.
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 £393,963. Semi-detached properties sold for an average of £453,543, with flats fetching £282,508.
Over the last year, Bristol house prices increased by 11%, reaching an overall average price of £400,520.
Leeds & Property Investment
The north of England has seen tremendous growth in buyer demand since mid-2020, and Leeds is one of the cities that has benefitted the most. This bustling city has experienced the country’s second-fastest rise in house prices, and it shows no signs of slowing down. With numerous regeneration projects underway, an abundance of job opportunities, and a growing demand for properties, Leeds is quickly becoming one of the most sought-after locations for property investment.
Even before the pandemic, Leeds was a hot spot for UK property investors. However, the shortage of new housing construction due to the pandemic has only added fuel to the fire, driving up property prices even further. In fact, JLL predicts that house prices in Leeds will continue to rise by 13.5% through 2026, making it an ideal city for property investors.
Several areas of Leeds are currently experiencing a surge in property prices. One of these areas is Kirkstall, which boasts a prime location in close proximity to the city centre. Its popularity with buyers is driving prices upward. Another area that investors should consider is Burley, which has long been a favorite among students. With its strategic location between Kirkstall and the city centre, Burley offers easy access to transportation and affordable housing options that can generate a strong return on investment.
Leeds & Property Prices
With an average property price set at £266,958, 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 highest number of sales were observed in the semi-detached category, with an average selling price of £263,465. Terraced properties were sold at an average price of £195,222, while detached properties fetched £507,511 on average. It is worth noting that the sold prices in Leeds saw a 10% increase from the previous year and a 16% increase from the 2020 peak of £229,250.
Birmingham & Property Investment
Birmingham’s property market is attracting more and more investors due to its growing population and housing shortage, making it one of the best cities to invest in the UK. With its thriving business scene and reputation as the largest economy outside London, Birmingham is experiencing strong rental growth, which is expected to continue in the coming years.
Birmingham’s city centre has seen a rise in prices by 0.7% compared to the previous year, and forecasts predict a further increase of 4% in 2022. According to JLL, the outlook for the future is even more promising, with house prices expected to grow by 19.5% from 2022-2025, the highest growth rate in the UK.
In addition, Birmingham has experienced a 51% growth in tenant demand in 2021, which is attracting more renters to the city. The combination of increasing demand and limited supply makes Birmingham a great investment opportunity for those seeking a strong return on investment. Whether you are a first-time buyer or an experienced property investor, Birmingham’s housing market offers a great opportunity for growth and potential profit.
Birmingham & Property Prices
Birmingham has seen significant growth in its property market in recent years, with the average home price increasing to £264,264 in the past year. This represents a 4% increase compared to the previous year, and an impressive 11% increase compared to the peak in 2020 when the average price was £237,745.
Semi-detached properties were the most commonly sold homes in Birmingham during this time, with an average selling price of £274,837. Terraced properties sold for an average of £215,112, while flats fetched £157,426.
Luton & Property Investment
The pandemic has led to a surge in remote working and a shift in priorities for renters and homebuyers. People are now looking for more space and larger square footage, preferably in areas close to cities. One such location that fits the bill is Luton, a commuter hotspot just 30 minutes away from London by train.
Luton is particularly popular among first-time buyers, thanks to its relatively low property prices and high potential for capital gains. According to recent data, the city has seen an annual price growth of 5.2%, making it an attractive prospect for those looking for a long-term return on investment.
In addition to its proximity to London, Luton also boasts excellent transport links, with easy access to the M1 and A1 motorways, as well as Luton Airport. The city is also home to a thriving business scene, with major employers including London Luton Airport, Vauxhall Motors and the University of Bedfordshire.
Luton has a diverse range of properties on offer, from Victorian terraces and new-build flats to larger family homes. The city has seen significant regeneration in recent years, with major projects including the £110m redevelopment of Luton Airport and the £300m mixed-use development of the former Vauxhall Motors site. These initiatives are expected to further boost property prices in the city and make it an even more attractive location for investment.
Luton & Property Prices
The Luton property prices are on the rise, with properties becoming increasingly sought after. The data shows that the average cost of properties in Luton was £319,888 during the past year. Among the most popular types of properties were semi-detached houses, which had an average selling price of £338,619. Meanwhile, terraced properties had an average selling price of £287,795, while detached houses fetched an average of £474,124.
The data also indicates that the sold prices in Luton have increased by 7% compared to the previous year. It is also worth noting that prices have increased by 13% compared to the peak in 2020, with an average price reaching £282,651. These figures suggest that there is great potential for those looking to invest in the Luton property market.
Manchester & Property Investment
Manchester’s ongoing transformation and regeneration projects have resulted in the city becoming an even more attractive place to invest in property. Its excellent transport links and strong economy have led to a significant increase in property prices over the last few years.
The city offers a wide range of properties, including apartments, townhouses, and larger family homes. With ongoing investment in the city, Manchester will see even more growth in property prices over the next few years. From 2021-2025, JLL predicts that house prices in Manchester will rise by 17.6%, making it one of the best UK cities for property investors to consider.
Manchester & Property Prices
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 £284,276 and average rental yield at 8.46% (gross).
Manchester’s property market has been performing well, and the latest data shows a positive growth trend in terms of property prices. Over the past year, the average sold price of properties in Manchester was £238,176, with semi-detached houses being the most commonly sold type of property.
Semi-detached houses in Manchester sold for an average price of £317,124, which is significantly higher than the average sold price of terraced properties (£237,047) and flats (£195,192). This could be due to the larger size and added amenities that semi-detached houses typically offer.
Overall, the sold prices in Manchester during the past year increased by 2% compared to the previous year. In 2020, the peak price recorded was £255,800, but this has since increased by 11% to reach £282,594 in the past year. This suggests that Manchester’s property market is in a healthy state and may continue to offer good investment opportunities for those looking to enter the market.
Liverpool & Property Investment
Liverpool is an attractive option for property investors due to its status as a world-class, internationally recognised city that attracts over £1 billion a year in investment. It is also one of the most affordable places for property investment in the UK, making it an ideal choice for first-time buyers and investors looking to diversify their portfolio.
Liverpool has also been performing well in terms of capital growth, coming in second in the UK. Additionally, the city has high rental demand and relatively low house prices, making it an attractive location for those looking to generate rental income. As a result, Liverpool continues to remain on the radar of one-to-watch property investment lists.
Despite the pandemic, Liverpool experienced a mini housing boom since sales started after the first lockdown. Looking to the future, the city’s property market looks promising, with forecasts predicting a rise of 13.1% in property prices over the next five years. This is good news for those who have already invested in Liverpool property and those considering doing so in the future.
Liverpool & Property Prices
Liverpool’s popularity as an investment hotspot has been steadily rising, and the city continues to remain on one-to-watch property investment lists. According to recent data, the average price of properties in Liverpool was £219,235 over the past year, which is significantly lower than many other major UK cities. Semi-detached properties were the most commonly sold type, with an average sale price of £234,647, while terraced properties sold for an average of £158,501 and flats were sold for an average of £144,634.
The sold prices in Liverpool have shown a remarkable increase of 7% from the previous year and an 18% rise from the peak in 2020. This indicates that the city’s property market is thriving and offering a solid return on investment for those who invest wisely.
When considering the best place to buy property in the UK in 2023, 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 2023, contact our team.