It seems an inconceivable question, relatively speaking, as to whether there would be any spots in the UK that had property that wouldn’t be hot next year.
After a two year period where the UK property price growth never dipped below double figures, we’re certainly not saying there are any areas that we could really consider to be cold, but that being said there are clearly areas across the country with more potential for growth than others.
There are many factors to consider in that assessment, such as population, economy and relative wealth but, as always, investors want to know the next hot spots.
There are, as always, areas that some may not have considered that are on a quickly upward trajectory, but there are also areas that were already glowing hot that will simply continue to grow quickly and consistently.
As property investors, we’re usually on the look out for a new opportunity, so we’re going to have a go at tipping you off to our places to watch for next year.
We’re barely at Halloween just yet, but as investors we’re usually looking 6 months in advance, so here are our top tips.
Manchester
A decidedly boring and predictable answer, but this tried and tested investment area simply won’t let up when it comes to growth and opportunity.
Considering it was particularly vulnerable to pandemic pressures – with its economy susceptible to tourism and hospitality uncertainty – it has blown away all pre-existing doubts to come back roaring in the face of adversity.
As written by BuyAssociation, “Manchester is still one of the most promising places to buy property. With a population of more than 2.5 million, the city and surrounding areas are thriving.
The average price of a flat there is £198,686, leaving room for capital growth as well as maximum yields. In fact, the average monthly rental yield is extremely high, at 6.14%.”
Birmingham
Contentiously referred to sometimes as England’s second city, with Manchester a very irritated participant in that argument, Birmingham hasn’t always classically been considered a hot spot for property, as such.
Having said that, the city has seen a huge surge in investment in recent years, with the city centre and surrounding areas undergoing huge regeneration. The surrounding urban areas, and university towns, have benefited from this hugely.
In the same article from BuyAssociation, it’s noted “Similarly, it has a population of more than 2.5 million, and this is forecast to grow significantly. From a property investment perspective, yields are also excellent at around 5.9% on average. Property prices are slightly cheaper, with an average flat costing £179,619. Over the past 12 months, this has actually increased by 10.77% as more investment and regeneration has impacted the region.”
Regardless, as a UK property investor, it’s certainly worth a moment of smugness as the past 2 years of success fade into the distance, but with another year of opportunity emerging on to the horizon.
In truth, the whole UK represents huge value and opportunity, it’s just that these two areas are probably some of the best around right now, for varying reasons.
If anything, it’s worth speaking to an agent or advisor now to plan your next move.