What Are the Best Places in the UK to Invest in Property?

If you’re interested in investing in the UK, it’s important to find out about the best places to buy property before committing to a buy to let purchase. In this detailed guide, we’ll discuss the different benefits of each property investment hotspot, helping you select the best place to invest in property in the UK. Here, you’ll find information on the UK cities with the most affordable property prices, the highest rental yields, and the strongest capital growth potential. We also offer details on how the UK property market has changed from 2018 to 2020, and how Brexit is predicted to affect property investment in 2020 and beyond. If this sounds good to you, scroll down to read our guide to the best areas for buy to let.

Where is the Best Place to Buy Property in the UK for Affordability

When thinking about investing in property, it’s likely that you will have set yourself a personal budget to stick to. If you’re just starting out in property as a beginner investor, you may not have a huge amount of money available to make the investment, so will want to explore the best places to buy property for a low price. Even if you’re not a beginner and you’re simply looking to build up your portfolio, affordability is still an important element to consider. While affordability doesn’t necessarily indicate a good investment, it’s definitely worth identifying the areas where property prices are lower before exploring their potential further.

Out of the eight top buy to let hotspots listed above, here are some options for the best place to buy property in the UK when it comes to affordability.

Where to Invest in Property for Capital Growth

Aside from generating regular returns in the form of rental income, part of the beauty of UK buy to let investment is the ability to benefit from an attractive return on investment thanks to capital appreciation. Capital appreciation, or capital growth, is a term that’s used to describe a rise in property values over time. The more your investment property grows in value, the larger return you will have when you choose to sell the property further down the line. This is why, when researching where to invest in property, cities with a high level of capital growth are key. If you want to know the best place to invest in property, UK investments in the following cities should be top of your list.

The Best Place to Invest in the UK For Rental Yields

So we’ve talked about affordability and capital growth, but what about rental yields? Rental yields are a big factor to keep in mind when deciding where to invest in the UK. In the same way that capital growth dictates the level of return on investment that you’ll recieve thanks to added value, rental yields indicate the amount of rental income you can expect. For a lot of investors, the best place in the UK to buy an investment property is an area with high average rental yields to ensure the most significant returns possible.

Based on the average rental yields for each of our top eight buy to let cities according to Go Compare, here are the best places in the UK to invest in property for high rental returns.

North Vs South

By analysing the most popular buy to let cities, it’s evident that there’s a clear divide between the North and the South when it comes to property investment. Five of the eight cities in this list to the best place to invest in property in the UK are located in the North. The remaining cities are based in the Midlands and Scotland, with no Southern cities offering signs of a high-performing property market in terms of yields, affordability and growth. So why is it that the best areas for buy to let tend to be up North?

Let’s start by looking at property prices in three of the top cities in the South. In Brighton, average property prices according to Zoopla stand at £470,496. In Bristol, the average is a little lower at £330,443, and in London, the average property price is a whopping £979,200. Because of these high purchase prices, it’s difficult to generate high rental yields.

How is Brexit Expected to Affect the UK Property Market?

While we know that property prices in a number of UK cities are currently performing highly, with some fantastic rental yields and property growth areas in the UK, the issue of property prices after Brexit is one that still leaves many investors feeling uncertain. If you’re wondering ‘where is the best place to invest in property following Brexit?’ and whether the best places to invest in property in the UK for 2019 will remain promising after our exit from the EU, the following information should help.

After leaving the EU officially on the 31st of January, the UK has entered into a transition period that will last until the end of 2020. During this period, the UK will negotiate with the EU until a final deal has been reached. The main reason that Brexit has affected the UK property market over recent years has been due to uncertainty brought on by the vote. Following Boris Johnson’s election victory in December 2019, however, things have massively improved in what’s been named the ‘Boris Bounce’.