You want to choose an area that looks positive in terms of the local investment, developments and is a desirable area where people want to live. Leeds is one of the best UK cities for property investing in 2023 because it remains relatively affordable, properties in Leeds are still 27.67% cheaper than the UK average. Best Places to Invest in UK Property [2022] Going into property is probably one of the most reliable strategies for securing long-term passive income for many investors. Please check your account to ensure you have received it. It will come as no surprise that Manchester continues to rank as one of the best places to invest in UK property in 2022. On the plus side, the country is still completely failing to build enough homes to meet the demands of first-time buyers, meaning that there remain millions of would-be buyers who have little choice but to continue to rent. 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The city's employment increased by 84 percent between 2002 and 2015, making it a top choice for young professionals, only surpassed by locations in the Midlands like Birmingham. second highest economic growth of 30 major European cities in 2021, one of the youngest populations in the UK with 38.7% between 18 and 35 years old, city continues to drive strong gross rental yields at 7.02%, the second highest in the north west, regeneration, the Liverpool Waters scheme will be one of the most impactful for the city, the city experienced the greatest property price increase in the country at 10.7%, from June 2021 to June 2022, according to Zoopla, with a gross rental yield of 6.49%, The average rental yield in Nottingham increased by an impressive 13%, High-spec studios, 1 and 2-bedroom apartments for sale, Resident-only access to amenities such as a gym, spa treatment rooms and private garden area, Prime location within the London Commuter Belt with hassle-free travel to the capital and Reading, At the centre of a 770 million large-scale regeneration project changing the landscape of Bracknell. From pickle themed cafes to the London Marathon, here's our top 11 things to do in London this month! For those that want to invest in property for rental income, these are the best areas for property rental yields: Rental yields tend to be stronger in areas that have undergone extensive regeneration and are close to city centres. Theres heavy investment in the local infrastructure, Universities and retail areas of the town which is going to make it a more attractive place to live for professionals. According to the Irwin Mitchel and the UK Powerhouse Overcoming Disruption in 2022, Nottingham ranked 15th out of the 50 cities ranked in terms of economy and growth with a GVA of 9.8 million and GVA growth of 7.4% for Q4 2021. It is estimated that another 100,000 people will move into the city centre by 2025, creating a significant demand for rental properties. Should I invest in a buy-to-let property in 2022? In recent years, the private rental sector in the UK has grown significantly, with 1.7 million more people renting than a decade ago. Price Growth in Five Years: 39.56%. The best place to invest in property in the UK is Bangor - an exceptional opportunity for anyone considering property investment. Average Rental Yield: 5.71% It is essential to conduct thorough research before investing in a buy-to-let property to ensure that the investment is likely to generate a healthy return. The Great North Rail project has also provided better connections and shorter journey times to key areas of the North, with improved capacity allowing 40,000 more passengers to travel throughout the region increasing tourism for Manchester significantly. Your email address will not be published. This guide explains what it is and why it's crucial! Advertisement. Looks like that email address is already registered. Revealed: where is the most profitable place to buy U Need a reliable moving company in London? Buy-to-let boomed along with the rest of the property market last year; now banks are gearing up for the momentum to pick up this year. HMOs are particularly popular in Sheffield due to its large student population, and if you pick the right area you can achieve better yields with S1 and S3 achieving 5.7% and 5.5% on average, according to PropertyData. Having previously been voted as one of the top places to live by the Sunday Times, Nottingham continues to prove itself in the affordability stakes. Image caption: ATGImages/Bigstock.com These are all essential success indicators for investors looking for stable, long-term rental demand. One of the fastest-growing cities in the UK, Birmingham has regularly been dubbed one of the best UK cities for property investors, a fact that remains in 2023. This has led to lucrative returns for landlords who have invested in the citys property market. The Midlands Metro expansion continues to offer easy access to emerging West Midlands destinations while work continues on HS2 a generational development that will revolutionise Birmingham and provide faster commutes to the capital. Its a fast-growing city and the headquarter to a lot of large businesses, attracting professionals and particularly young professionals just out of the local universities, which means rental prices are relatively high. Here, we look at how Section 24 - the amount of tax relief that landlords receive -functions, how it affects rental income, and what options landlords have. Why Invest in UK Property in 2022? - SevenCapital You can navigate to your particular section of interest using the table of contents below: We certainly hope so, or we wouldnt be here! You want to avoid locations that are rural, have poor transport links, a low amount of large employees there are also areas that are seen as quite prestigious where the values are higher than you can achieve from a rent perspective so they dont really make sense, like Oxford, or York for example. All 6 cities saw house price and rental growth in 2022 Increased mortgage rates did impact the sales market in the second half of the year Rental growth hit record levels, up by an average of 15.8% in 2022 across all 6 cities Manchester saw the strongest rental growth, up by 22% in 2022 Despite the lower property prices, the income is relatively good as an average, attracting skilled workers and making it an attractive area for tenants, and in turn a hotspot for landlords. We've done the legwork for you and have put together this guide to the top moving companies in London. Average Rental Yield: 6.49% Landlords must pay income tax on this net rental income, which is added to any other income earned during the year and taxed accordingly. Rental properties (buy-to-let) 2 . Leeds is ranked as the UKs eighth best area for rental growth, with an 11.4% increase on average rental income from Q4 2020, regeneration developments totalling in excess of 3.9 billion over the last ten years, with an additional 7.3 billion anticipated for the years ahead, key towns in the South East have taken the limelight. If you use the statistics for flats, however, then youre looking at an 8.22% yield, average! Another factor that makes Manchester an attractive location for landlords is the high demand for rental properties. Knight Franks rental market forecast estimates that there will be a 20.5% cumulative increase over the next 5 years across the UK. With house prices shooting up all across the country, Manchester property prices saw an increase of 19% in some areas. You've been added to our mailing list. With Londons property market experiencing lower growth than other parts of the UK, a number of key towns in the South East have taken the limelight, offering more affordability and still delivering connectivity with the capital. Wave of mega projects mounts in 2022. Despite the potential risks, many investors are attracted to the UK property market because of its resilience and ability to provide steady returns. A whopping 41% retention rate for graduates attracts fresh twenty-somethings looking for housing too. Cloudflare Ray ID: 7d27ba5028572523 If you look at PropertyData statistics who breakdown the average asking price by postcode and provide a rental yield you can see that there are particular postcodes that are more attractive than others, with the likes of NG1 representing a 7.2% yield, and NG7 following close behind with 6.7% the two particular areas of note. Average Rental Yield: 7.02% Its no secret that house prices have been on the rise all over the UK. 7 Best Areas to Invest in Property Near London - SevenCapital Were experts in property investment, dealing with hundreds of properties every year and highlighting opportunities to investors on a daily basis so we get to see which areas are regularly snapped up and offering the best opportunities. If youre thinking of buying an investment property, Leeds can be a great place to do so. But places change. With house prices expected to continue to rise in 2022, property investment could remain a popular choice. Meanwhile, Nottingham, Leicester, and Norwich were the top buy-to-let areas for bungalows. The free download has been sent to your email. There are some postcodes that have particularly good average yields as well, like L1, L4 & L5 which are all 6% or over according to PropertyData. However, it is worth noting that capital growth rates can vary depending on location and other market factors. Birmingham. Furthermore, a 770 million regeneration plan is impacting property prices positively, contributing toSavills forecasting rises of 19.1% on average over the next five years. While capital growth prospects are behind those of Manchester and Birmingham, they are still expected to reach around 16% over the next 5 years, making Liverpool of the best cities for property investors. Price Growth in Five Years: 43.49%. As evident above, Birmingham, Liverpool and Newcastle generate some of the highest rental yields, with the two biggest cities achieving above the UK average of 4.71%. Bracknell gives an opportunity for investors looking to capitalise on long-term growth and reliable income in the booming young, commuting professional demographic close to London. The average house price according to Zoopla the average house price over the last 12 months in the Liverpool area has been 205,395. The average house price in Sheffield is fairly reasonable too, with Zoopla stating over the last 12 months its sitting at 225,746 and the average rent again according to home.co.uk is 886pcm which provides a reasonable 4.71% yield. The Big City Plan, a 20-year city-wide transformation project, has surpassed its halfway point and has made huge improvements to the city centre, several suburbs as well as infrastructure and transport. 2021 defied all expectations in terms of the economy, in spite of all the lockdowns and Covid-19 issues, the economy and property market boomed and its expected that it will continue well into 2022. Leicester has excellent connectivity via national rail with large cities like Birmingham and London, because of its location inside the East Midlands. There are many reasons why tenants - and investors . Registered office: 1 London Bridge Street, SE1 9GF. Specifically, where are the ideal locations for UK real estate investments in 2022, and if you already know where to invest, what should you be on the lookout for? Its a bit of a curveball and perhaps an area you wouldnt expect us to recommend, but the North Yorkshire town has boasted some really impressive capital growth stats over the last few years and the house prices are rising at an incredible rate. As an investor, you might want to look at yields higher than that though, and its all about picking the right area and types of investment property. At the same time, a growing population and increasing rental demand means that investors can get solid returns by investing in Leeds. For your next investment 22.5% Price Growth Expected by 2025 Low Supply Driving demand 14.5% Rent Growth Over the next four years Thank you! They detail that the average rental in Manchester over the past 12 months is 1,323. If you're looking for a long-term investment, where you'll generate an income as well as any capital growth, buy-to-lets could be the right option for you. It isnt essential to have knowledge of the area, but it helps a lot. Landlords - Find quality tenants faster than ever before for only, Latest News: Landlords offered 6,000 to house tenants on benefits, Latest News: Landlords to evict disruptive renters with 2 weeks notice. Keep up to date with Simply Business. These cities have future growth predictions of 18.8% by 2026 while also offering high capital gains over the last 12 months, with prices rising between . Manchester is the number one location in Aldermore Banks buy-to-let city tracker, which ranks the UKs best areas for buy-to-let. No 1 Hagley Road St Georges Townhouses The Kettleworks Bridgewater House Ridley House Madison House The Landmark Fabrick Square The Quadrant Gresham House Shoreditch Hotel North Star Swindon Pershore Road Stirchley Premier Inn Lincoln Lyndon House Erdington Eastwood House Auchinleck House Lansdowne House Rutland House While rental income is crucial to cover the costs associated with owning a property, such as mortgage payments and repairs, capital growth is the factor that can make it a lucrative investment. The Commonwealth Games placed an international spotlight on Birmingham and further boosted the citys appeal. Bracknell is one of these towns. 20 Best Cities in UK to Buy Investment Property in 2023 - ProfitableVenture The 'second city' will soon serve as a major hub for HS2, one of the most exciting infrastructure projects in a generation and a big reason why Birmingham is continually one of the best places in the UK for real estate investment, in addition to the top-notch connections from Grand Central and Birmingham International Airport. Additionally, Birmingham remains the most popular destination for people moving out of London; and with 40% of the population being under-25 and a student retention rate of 49%, Birmingham has a sizeable potential rental market. Key metrics we look at are: This allows us to build a complete picture of a locations potential buy-to-let performance, while also highlighting emerging towns and cities that might not be traditional options for investment. Cost of living - latest: Cost of household appliances from July This highlights several key best places to invest: Birmingham Derby Leeds Manchester Sheffield Liverpool Newcastle Leicester Nottingham Glasgow With all of these points considered, we're able to build out a complete overview of the best property investment areas in the UK. If youre looking to buy and rent out a larger property, here are the top five hotspots where we saw the most HMO landlords take out insurance during 2022: Its no surprise that all of these cities have multiple universities and strong employment markets, making them popular with young professionals and so appealing to HMO landlords. Find this article useful? Despite the record-breaking property prices, buy-to-let investment can still yield significant returns in 2023. And while it is currently valued at 60,000, that 40,000 increase is small in monetary terms from smaller percentage gains seen elsewhere when the property cost more in the first place. Here we can see the true impact of Londons decline and how regional markets have steadily become the best places to invest in UK property 2023. Another major contributor to Nottinghams rising population is Queens Medical Centre, a super-hospital thats also a leading teaching hospital in the UK and home to over 6,000 medical staff, many of whom are looking for residential accommodation within the city. Best UK rental yield hotspots for 2022 - Provestor Sorry, something went wrong. Guide to Investing in Property in the UK | The Motley Fool UK Is Property Still A Good Investment UK 2022? - Explained There will be a point however that its worth buying more expensive properties because of the amount of work or management fees associated with managing multiple cheaper properties. For those looking to invest their money in property, we take a look at some of the best UK cities for property investors in 2023. It noted that an investment property in the region in 2018, for an entry-level investor, may have only been 20,000.