The UK is full of opportunities for budding property investors. If you are just starting out or if you are trying to add to your current portfolio, you may be wondering where you can afford to invest. UK house prices have remained on the rise, and with a growing number of renters, the opportunities are there for property investors. Though property prices are high in certain areas of the country, other areas offer lucrative opportunities that are surprisingly affordable.
Regional differences in the UK are incredibly obvious. There has been a historic north south divide in the country which has become increasingly apparent when it comes to property prices. The government’s Northern Powerhouse Strategy has focussed on trying to redress the balance, to relative success, however the north still remains far cheaper for property. Properties in the growing cities of the North are a great investment opportunity, and prices for city centre apartments are still affordable for many. Though prices are higher than they have been for a long time, capital appreciation looks set to continue so it’s best to invest while property is still affordable. Off plan developments can offer investors a lower priced alternative, with key locations in the city centres constantly being redeveloped.
One key piece of advice is to look for areas which are yet to experience the benefits of regeneration. Regeneration can be a huge boost to house prices, and large coordinated efforts by both council and private sector institutions have led the way in the cities of the north. Projects like Wirral Waters, Manchester’s St Johns and Project Jennifer in Liverpool have completely transformed regions which were once to be avoided. If you can plan ahead and choose an investment property in an area set for regeneration, you will be able to buy it a great price.
According to recent research the top UK cities for buy to let investment are – Manchester, London, Nottingham, Liverpool, Leicester, Cardiff, Birmingham, Sunderland, Newcastle upon Tyne and Glasgow. UK property prices vary wildly from Stoke on Trent which has an average property price of £106,000 to London which is £484,000. Other affordable UK property locations include Liverpool which has an average property price of £130,677 and Sunderland which has an average price of £115,151.
When comparing different areas of the UK for investment opportunities it is also worth looking at how quickly you will pay off the property. One way of finding this is looking at rental yields. A comparison of UK cities for buy to let landlords found that Manchester ranked highest with an average rental yield of 5.55% and an annual rental growth of 5.76%. Property in Manchester city centre can be purchased from property investment specialists like RW Invest who offer high end apartments at an affordable rate. You can get an apartment for less than £100,000 in a great location in Manchester, which is a stark contrast to other more expensive areas of the UK, like in the south east.
When it comes to finding affordable and profitable investment properties, looking to the future is key. Look at areas which are currently affordable but have plans for future growth. Mere affordability isn’t enough to ensure a successful investment – rental yields, capital appreciation and rise in rental returns are all essential. Dependent on your budget, there are a wide variety of buy to let properties available in the UK.