Best of Three: UK Property Investment

Property – alongside cash, bonds and shares – is one of the four most common types of investments. However, as the most popular property saying goes, it’s all about location, location, location. Having the wrong property type in the wrong location can have a dreadful effect on your UK property investment strategy.

With many first time buyers finding it difficult to get onto the housing ladder, demand for quality rental property is at it's peak and many UK investment properties are easily able to cater for the needs and demands of tenants, whether they are students, young professionals or anyone else.

Here we have found three extremely popular locations for UK property investments that have strong rental potential.

Manchester

With a population of 2.5 million and a workforce of 1.2 million, Greater Manchester is the economic powerhouse of the North West, contributing a massive £28 billion to the region’s GDP.

Over the last decade, an extensive regeneration programme has transformed the city, which now boasts a world-class economy based around financial services, computing, engineering, research, broadcasting and communications.

• Average monthly rent: £862 pcm

• Average asking price: £144,496

East Manchester

Back in the day, the only effect of living near a football ground was that residents couldn’t park outside their house on a Saturday afternoon. Now, however, the Halifax says that average house prices in the streets near Manchester City’s Etihad Stadium have risen by 150 per cent in a decade.

Northern Quarter

Property in the Northern Quarter tends to be either converted spaces above the various bars and shops, or purpose-built apartments in new developments. City living had really taken the area to heart and the rental market is always vibrant. With the trend for city living still increasing and the influx of media professionals expected in the area following the relocation of the BBC, as a UK property investment, Manchester properties are likely to show great returns over the next few years.

Top 5 reasons Manchester makes for a great UK property investment:

• Largest economy outside London

• Population growth is three times the national average

• High demand for city centre rental property from well-paid city workers

• Largest university campus in Europe

• Excellent transport links

Yorkshire

UK Property Investment trends are often driven by the economic climate, though it would seem that the Yorkshire buy to let market has made a comeback as a result of the growing number of people looking to rent property in the area as opposed to purchasing.

Investors are attracted to the Yorkshire buy to let market due to the exciting returns that their investment can produce. Yields across the UK are improving consistently and Yorkshire is amongst the most prominent regions. LSL Property Services’ most recent figures show that rental yields for Yorkshire and The Humberside were 6.6% in April, well above the sturdy national average of 5.3%.

The thriving property haven between the cobbled streets of York, the spa town of Harrogate and the bustling city of Leeds, has managed not only to resist the downturn, but some properties have soared in value.

Sheffield

Sheffield city centre offers buy-to-let investors the best returns in the UK, according to research across more than 2,600 postcodes. Comparison website TotallyMoney.com published a report recently that showed investors can expect a gross yield of just over 11%.

• Median monthly rent - £645pcm

• Median asking price - £69,995

Leeds

Gross yields in Leeds average 8.1%.

Investing in a buy-to-let property in a university city such as Leeds can prove a wise UK property investment move as many young professionals settle in the city in which they studied, with many gravitating away from ‘traditional’ student areas such as Headingley or Hyde Park to Leeds city centre and the leafy suburbs of Roundhay, Chapel Allerton or Cookridge.

• Average property rents in Leeds: £872 pcm

• Average flat/ apartment price: £130,495.

Top 5 reasons Yorkshire makes for a great UK property investment

• Soaring property values - prices nationally rose between 3-5% in Yorkshire in 2015

• Well above average rental yields

• Excellent transport links

• Large university population with need for extra accommodation

• According to Eurostat, Yorkshire’s economy measures up against some entire countries in Europe. For example, between 2010 and 2013, more jobs were created in Yorkshire than in the whole of France.

Newcastle

Newcastle came 3rd in the top 10 places for Buy To Let income yield, when compared to the national average of 6%, the North East property market demonstrates very favourable returns - with up to 9% returns available in the Newcastle upon Tyne area.

Newcastle is a global hotspot for investment; intensive cultural and business regeneration is ongoing and has made the area a desirable place to live and work for a varied demographic, who are creating an increasing demand in the Private Rented Sector- up to 50% increase in rental values has been seen in some areas.

The population is on the increase once again and levels of graduate retention are at their highest, presenting the vibrant city as ideal for investment.

• Average property rents: £800 pcm

• Average flat/ apartment price: £129,830

Top 5 reasons Newcastle makes for a great UK property investment

• Accelerated Development Zone – Four sites across Newcastle and Gateshead have unlocked a £92m investment programme

• Excellent transport links

• Rental yields are well above the average UK figure

• 42% graduate retention rate in the North East (the highest outside of London) Newcastle's rental market is strong for both student tenants and young professionals.

• Demand in the Private Rented Sector in Newcastle is growing and out-stripping supply