The UK property market is being hailed as the hottest ever competition to buy, with buyer demand per property for sale more than double pre-pandemic levels.
According to the latest Halifax Price Index, house prices in August 2021 were around 7% higher than recorded in the same month last year.
All in all, for those looking to invest this year, property seems to be the best possible option.
Where, though, should you look?
Aside from the usual suspects, some new contenders have thrown their belt into the ring somewhere like Manchester or Liverpool.
Luton
As people begin to tire of London, citing various issues such as rising costs, they’re starting to look beyond the capital for new ventures.
For example, there has been a spike in those seeking Luton investment property for sale, with opportunities in the town blossoming, showing substantial value, demand, and increased house price growth.
With its close proximity to London and its reputation for solid transport links, Luton appears to be one of the most appealing investment alternatives.
According to Rightmove, property prices in Luton have increased by 7% over the past year, a total average of around £290,200.
Considering the area, with average southern property valued at £345,075 and the UK average house price currently estimated at £250,341, most would agree that you’re not going to find prices as low as this, especially if you’re looking at property close to London.
At its epicentre, central Luton is a fantastic location for those looking for the best place to invest.
Containing wards like Dallow, Farley, and South, the LU1 postcode currently offers the most affordable property prices on this list at only £259,580.
Better yet, the region has seen property prices grow by a whopping 56.06% in the last ten years, most likely in part due to its growing student population, as well as the blessing of those aforementioned world-class transport links.
With London just 22 minutes away from Luton town centre, with railway connections to Leeds and Sheffield, all the way to Brighton and Gatwick, Central Luton is a crucial investment hotspot with room to earn far higher returns.
Birmingham
Despite an extensive history of dominating the investment market, Birmingham is still a rapidly expanding city, with its growth rates being one of the highest in the country.
A considerable aspect of this appeal is affordability.
Data suggests that the average income to property price ratio is massively more rewarding in Birmingham than anywhere else in the country.
With the demand for high-quality property constantly rising, the UK’s Second City is able to utilise this advantage to attract, and more importantly, retain, skilled workers that can spend their income in this rapidly growing city.
Average rent there has also risen by 30% over the last decade. This figure is expected to increase by 12% over the next couple of years, boosted by increasing demand from young professionals leaving London and a rising population set to hit 1.24 million by 2030.
Throw in an impressive regeneration project – the ‘Big City Plan – investment demand for Birmingham has arguably never been higher.
Manchester
Manchester is another one with a reputation for reigning supreme in the world of buy-to-let investment.
Similarly, this looks like something that will almost definitely remain the same for some time, with house prices in the city continually being some of the best in the UK for the past few years, especially in terms of growth.
As property prices in the entire North West region are predicted to increase by 28% across the next five years, there would be little surprise if Manchester was the one leading the way.
The city has seen major transformation over recent years, seeing a significant increase in property prices. A recent study showed that Manchester homes had seen the highest price increase over 20 years, with a rise of 143%, from £73,910 to £179,537.
Another solid competitor with the capital city– perhaps sometimes even eclipsing it entirely – all signs seem to point to a rise in capital appreciation returns, the likes of which to rival its impressive increase between 2017 and 2018.
Manchester is one of the top destinations for young professionals – on account of an impressive global business and employment growth of 84% between 2002 and 2015 – only narrowly losing out to those in the Midlands.
Liverpool
With comparatively low housing prices and massive rental demand, the maritime city is undoubtedly a place to keep your eye on.
Regeneration efforts have helped the city blossom into an economic powerhouse – and a very profitable one at that.
With developments like Liverpool ONE, the Knowledge Quarter, and the Baltic Triangle being just a few highlights, as well as ranking eleventh in a recent list of the world’s best cities for mental wellbeing, Liverpool remains a clear contender for a top spot to invest in, both this year and 2022.
As mentioned, Liverpool boasts some of the most impressive investment property for sale with high rental yields that are almost impossible to ignore.
And, since rental yields are such an integral part of any buy to let property investment, it’s not hard to see why Liverpool is deemed a top property hotspot.
Over the last few years, the city has continuously been on an uphill trajectory, maintaining its top reputation in 2018, 2019, 2020 and 2021.
Unless people suddenly tire of the Beatles or football, this is a location that might just make an investor squeal with delight.
Despite it looking – and occasionally, being – apocalyptic, UK property investment seems better than ever. With the future looking to remain promising, it could be the best time to jump in and get involved!
Possible header image – Photo by Maria Ziegler on Unsplash – (https://unsplash.com/photos/jJnZg7vBfMs)
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