If you’re thinking about investing in property, you’re on the right track towards giving your finances an extra boost. Property investment is one of the most lucrative investment options to consider, with the potential to make large returns, especially if you are selective on your investments.
UK Should Be Your Next Investment Location – Why?
The UK property market has had a lot of mixed reviews as of late, with many questioning the effect that the impending Brexit vote will have on investments.
In reality, the UK has plenty of potential for those keen to invest, and should definitely be considered by both UK based investors and those from overseas looking for their next venture. Here are some reasons why the UK should be the location of your next property investment.
The UK property market is thriving in many ways. Significant house price growth has been noticed in many areas of the UK, with the north-west region leading the way. This region, home to major cities Liverpool and Manchester, presented a growth of 5.6 per cent from July 2017 to July 2018.
This house price growth was higher than in any other UK region, including London, where prices actually dropped by 0.7 per cent year on year.
This property price growth is not expected to slow down in the north-west region, with predictions for further growth of 21.6% over the next five years. This confirms that for investors looking to make big returns when it comes to capital appreciation, the north-west region is the best place to look.
Rental yields are another big factor when considering a property investment. In the UK, cities like Manchester, Liverpool and Leeds offer fantastic yields for investors, with an average of 5.55 per cent in Manchester, 5.05 per cent in Liverpool and 4.29 per cent in Leeds.
In certain postcodes, these rental yields reach even higher, with areas of Liverpool and Manchester boasting yields as high as 11.79 per cent and 10.08 per cent.
Property companies with investment opportunities in these cities, such as RW Invest, offer city-centre apartments with yields as high as 7 and 8 per cent, in areas with a lot of capital growth potential.
One of the reasons why buy to let investment has been so successful as of late in the UK is down to the strong levels of rental demand. Demand is massively outstripping supply in a number of UK cities, particularly those with high populations of students and young professionals.
Young people are consistently struggling to buy their first home in the UK, and therefore need to rent for longer periods of time. Cities like Liverpool and Manchester, which are home to many universities and business opportunities, attract a large number of young renters.
In fact, Manchester has recently seen a surge in millennials moving to the city from London, with the overall population having increased by 26 per cent from 2002 to 2017.
Along with the many nightlife options and business opportunities, young people love the appeal of being able to live in or close to the city centre in Manchester – something they struggle to do in London.
All in all, if you’re looking to attract a constant stream of tenants, gain an attractive rental income, and benefit from steady growth, investing in a property in the UK is a fantastic option. Just remember to be vigilant, keeping an eye on the market and only investing in the cities and regions with the best potential.