Where Is the Best Place to Invest in the UK?Property Investment Basics
One of the main questions we get from potential investors is where is the best place to invest in UK property, and it’s one we answer constantly.
No two cities or towns have the same property market, and property investors should look for these three main qualities in a city they want to invest in:
- Affordability – You don’t want to be paying too much for an investment property, as this will typically lower your rental yield.
- High rental demand – Areas with high demand from tenants will not only see growth in rent but also have a lower chance of void periods.
- Price growth – Areas with higher-than-average house price growth are desirable as it means investors will benefit more from capital appreciation.
Based on these qualities, we’ve selected two UK cities that we feel are the best to invest in in the UK.
Where Should You Invest?
When looking at major cities in the UK, it is important to value the above three factors highly to help give you the best chance of making a good investment.
You should also value facts such as regeneration schemes in the area, as well as any universities that are close by. Transport links are important for any tenant, and amenities in the area like restaurants, bars, gyms or activities are also desirable.
Given these qualities, we feel two cities stand head and shoulders above the rest of the UK to be regarded as the best places to invest.
Liverpool combines very affordable house prices with high rental demand, as well as some of the best possibilities for price growth in the UK. Over the last five years, the Merseyside city has seen house prices rise by over 40%!
There is also major regeneration all throughout the city, helping to draw newcomers to previously run-down areas like the Baltic Triangle.
Major universities like the University of Liverpool and Liverpool John Moore’s University are in the city, whilst there is a vibrant cultural aspect to the city across restaurants, bars and shopping destinations like LiverpoolONE.
The other major city which we think is one of the best places to invest is also in the North-West – Manchester.
This crown jewel of the Northern Powerhouse has slightly higher prices and slightly slower growth than Liverpool but makes up for it with the major regeneration and incredible career opportunities on offer in the city.
Major employers like the BBC and Nike have offices in the city, while some of the UK’s top universities like the University of Manchester draw thousands of students every year.
Both cities are predicted by Savills to lead the UK in terms of price growth in the coming years, with a growth of 11.7% expected by 2027, higher than other major cities like London or Birmingham.
When it comes to a combination of price, demand, opportunity and potential, we feel wholeheartedly that Liverpool and Manchester are the two best places to invest in property in the UK.