Best Places To Invest In UK Property In 2021
2020 was a challenging year for many reasons, but the good news for investors is that the UK property market continues to be highly profitable and reliable going into 2021. Whether this is your first venture into the property world or you are a professional portfolio landlord looking to brush up on your knowledge, we have put together this list of the best places to invest in UK property.
Perhaps the most well known phrase in property investment is ‘location, location, location…’ and for good reason. It is a crucial factor which can be the difference between a successful investment and one which fails.
With an estimated value of over £1 trillion, the Buy-to-Let sector is one of the key investment markets for the UK and continues to attract incredible demand. For investors that want to invest in a relatively robust and stable market, the UK remains a solid choice. But where should you put your money? Is it time to look North with your investments?
Check out our list below of the best places to invest in UK property in 2021.
The UK’s second largest city, Birmingham, continues to be one of the most popular investment locations in the UK. Despite fears by some that Birmingham would face the brunt of Brexit uncertainty, the city has in fact been the top performer in the UK since 2016 and this looks set to carry on in 2021.
Recent developments in transport and infrastructure, including the HS2 project, indicate that the city will continue to thrive in the foreseeable future. Companies like Deutsche Bank, KPMG, PricewaterhouseCoopers and DLA Piper have all chosen the city as their base for good reason, and they are bringing young professionals with them. This is a massive positive for any buy to let investor looking at the Birmingham property market. Demand for property in the city is high and it’s expected that due to rapid population growth, they will need nearly 100,000 new households within a decade.
There’s clear evidence to show that Birmingham has the potential to deliver exceptional returns on top of growth. On average, rents have risen by 30% over the last 10 years in Birmingham and it is predicted that they will rise by 15.9% over the next four. As more and more young professionals are looking to swap London for Birmingham, it is expected that the population of the city will hit 1.24 million by 2030.
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Technologically, Birmingham remains ahead of the curve too. 2020 saw infrastructure implemented to harness 5G technology, as the West Midlands began testing innovations. Taking all of the above into consideration, Birmingham is a fantastic opportunity for a property investor and one of the best places to invest in the UK.Get started with Birmingham Property Investment here.
Although overlooked by many, Liverpool is another excellent contender for being one of best places to invest in property in the UK. This is thanks to exciting recent developments, exceptional career opportunities and rising tenant demand across the city. It is central to the government’s new plans to build a Northern Powerhouse, and for that reason it should pique your interest as an ambitious property investor.
Liverpool has always been considered one of the more affordable cities for buying rental property, especially when compared to high property prices in the South. To add to this, regeneration has had a huge impact on demand for the Liverpool rental market after the completion of Liverpool ONE, the largest open-air shopping centre in the country. As a result, Liverpool boasts some of the highest performing rental yield postcodes in the UK.
It is forecast that property prices in Liverpool will rise by 13.1% over the next four years, slightly below Birmingham but still one of the highest rises going forward. Taking into account the affordability of properties in the area, this makes for an attractive investment opportunity.
According to the council’s ‘Liverpool Local Plan’, nearly £14 billion worth of regeneration projects are either in progress or in planning, with the eventual aim of creating 35,000 new homes and 38,000 new jobs. Liverpool also has an excellent income to house price ratio at 4.9 so it is more than worth your time as an investor.Get started with Liverpool Property Investment here.
Referred to as the ‘capital of the north’ Manchester is one of the most exciting places to live and work in the UK. It brings together young professionals looking for excellent career opportunities and a thriving social life, alongside families that are looking for affordability. For these reasons it is a firm favourite for buy to let investments in 2021.
In recent years Manchester has led the way for house price growth in the North and future growth indicators suggest that this will continue. Prices are expected to rise by as much as 17.1% which can be attributed to the city’s rapidly growing economy and population, which have both made incredible strides over the last few years.
Manchester’s expanding infrastructure is further reason to invest. From the Manchester Metrolink to HS2 plans, the Transport for Greater Manchester project is ensuring an efficient, modern transport system around the region.
For Buy-to-Let investment, Manchester is certainly one of the safer bets in the UK. In particular, we recommend the luxury city centre apartment market for any property investors looking at Manchester.Get started with Manchester Property Investment here.
London has long been considered a ‘safe haven’ for property investment, and this opinion doesn’t look like it is set to change any time soon. Despite notoriously high property prices, there are a number of very tempting benefits to investing in the UK’s capital, such as the financial and political stability that the city enjoys.
Many young professionals are drawn to the capital for work, which is why the number of households renting privately in London has shot up from 20% to 30% in a single decade. This has created plenty of opportunities for buy-to-let projects to thrive. Rental demand is huge, so any savvy property investor should be keeping close tabs on the London property market, along with the commuter belt that encircles the city.
Finding the right areas to invest in is crucial to successful property investment in London. While it is the most expensive city for property in the UK, there are some areas of London which are more affordable than others. Some examples of areas that you should consider include Ilford, Romford, Barking, Dagenham, Harlington, and Thamesmead. East London in particular is considered one of the best areas to invest.
Without knowing where the best places to invest in London are, it can be difficult to make a healthy profit. However, if done successfully it offers highly lucrative returns. Carry out your research carefully or work with a reputable property investment firm who can do this for you.Get started with London Property Investment here.
With a central location and direct access to many key destinations, Nottingham should not be overlooked as an investment area. It is well-known for its array of amenities from the retail offerings of the city-centre and Market Square to the restaurants and bars a little further out in Hockley.
More affordable than other major cities such as Manchester and Birmingham, Nottingham offered quality yields of around 9% in several city centre postcodes including NG1 (the city centre) and NG7 (the surrounding area which also includes the University of Nottingham). Driven by two major universities, there is a high student population in the city which creates ample opportunity for buy to let investments.
The market is relatively affordable and sees incredible demand from both professionals and students, providing particularly strong rental yields. Growth is largely maintained around the city-centre, where prices have risen by around 210% since 2000.
Nottingham is also home to Queens Medical Centre, a ‘super hospital’ in the region and one of the largest teaching hospitals in the country, with over 6,000 medical staff adding to the growing demand for accommodation.Get started with Nottingham Property Investment here.
Sheffield is one of the fastest growing cities in the country, yet prices are still some of the lowest out of all major cities in the UK which offers the opportunity to secure excellent prices within the current market. You can lock in stronger yields for when forecasted growth occurs.
There is a huge student population in Sheffield thanks to the city's two major universities, the University of Sheffield and Sheffield Hallam. In fact, as many as 1 in 10 residents there are students. As a result, there is consistently high demand for rental properties.
Taking all this into account, Sheffield is a buy-to-Let investment hotspot, which has seen prices grow by 223% over the last 20-years and still remains one of the most affordable markets with the average property costing as little as £199,000. While Sheffield might be still a few years behind some of its Northern counterparts such as Manchester and Liverpool, it has a bright future ahead if the market continues on the same path. And you have the opportunity to profit from this if you get in there early.Get started with Sheffield Property Investment here.
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It's a very different market in Scotland, it's a smaller market. There's some fundamental changes namely oil and gas with all the issues there and that I know Aberdeen and a few of those places house prices have dropped considerably. So, it
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