Coming out of the last 12 months, the UK property market is continuing to see interest ramp up across the country. Since last summer, the rental property market and property investment market have taken off, buoyed by the stamp duty holiday and the pandemic reshaping how people view property.
When investing in property, working with property market experts can help you choose properties that hit certain criteria that enhance their investment potential. If you’re considering investing this year, then here are four of the best places to invest in property for 2021.
Birmingham
Holding its place among the top cities to invest in, Birmingham has seen an exciting level of growth over the past five years. As elements of the Big City Plan come together, aiming to transform the city center into a world-class destination, property investment in Birmingham is looking to capitalize on these positive developments.
The February 2021 HomeLet Retail Index puts the West Midlands within the top five regions to see a rental yield increase of over 5% in the past year. Investors operating within the private rental sector have already seen healthy returns here, showcasing to new investors in Birmingham what they could potentially receive.
Leeds
As one of the major northern forces, Leeds has started making big strides toward potentially overtaking Manchester as the best place in the north to invest in property. Long-term real estate investments are particularly popular in Leeds, as almost three out of four people within the city are renting and there is a persistent demand from new and existing tenants.
Leeds is also set to become another competitive media hub in the north, with Channel 4 on its way and the BBC announcing its intentions to move jobs out of London and into Leeds. With ITV already sitting comfortably within the city, there is likely to be a jump in both demand and average property price once these moves are completed.
Newcastle
If a low-cost investment with a good yield is what you’re looking for, then Newcastle has the answer for you. Picking the right NE postcode is crucial as some outperform others, but you can uncover some of the UK’s best rental yields on offer with smart property investment in Newcastle.
The city is comprised of a large amount of young professionals, owed to the retention of its graduates from Northumbria and Newcastle universities, as well as a good concentration of business start-ups. With this comes a demand for rental properties close to the city centre, which investors can provide through the right real estate investments.
Manchester
Although Leeds may be snapping at its heels, Manchester currently remains the ideal place for property investment in the north. The traditional northern powerhouse delivers a promising alternative to careers in London for young professionals and graduates, with many businesses considering Manchester as a viable location for their main office over London.
As exemplified by Homelet’s Rental Index for February 2021, the rental yield in Manchester continues to lead the pack within the north and even betters the Midlands. As big businesses continue to shift their focus away from London and the northern infrastructure improves, both rental yields and property investments will grow – meaning purchasing rental real estate now could put you significantly ahead for the future.
It is likely 2021 will still have some surprises in store for us which will impact the property market in one way or another. Armed with the right information from property experts such as HomeLet, you’ll be able to make your investments go further and get the results you are after.
