As the UK emerges from restrictions that have been in place for the best part of 18 months, activity in every area of the economy is now ramping up again, and quickly.
In the UK, property across the country has increased in value over the year to May by over 10%, which is quite staggering when you think that it’s one of the biggest yearly jumps seen for decades.
More impressive still is that UK property didn’t stagnate or drop in one of the most pronounced economic shocks in world history. That may sound slightly dramatic, but it remains true that it is quite remarkable that it flourished in such tough conditions.
This means that credit must be given to property investors who not only ignored a lot of the doom mongering, but actively went out and saw the opportunity that was there for the taking.
With that in mind, we’re taking a look at some of the UK’s best investment cities right now, as reported by Property Wire.
Ranked number one, Manchester is probably high on most investors’ lists and won’t come as a big surprise.
This calculation is based on the amount of people who rent as a proportion of housing in the area, and as reported in the article, “Manchester is the major city to offer the greatest potential to Build to Rent investors, with private rentals accounting for as much as 30.7% of the city’s property stock.”
With a young population, a booming economy and three world class universities, the city is likely to increase that number within the next few years as graduates settle in and migrate to the city.
Despite large rental price drops over the course of the year, the capital still remains very popular with private renters, despite rents still taking up a large chunk of disposable income.
It was noted by Property Wire, “London is home to by far the highest volume of rental stock with just over one million private rental homes, accounting for 28.9% of all dwellings.”
The capital has a much higher entry price for investors looking for buy to let investments, however, as a proportion of housing stock, the city still wins out in this regard, and that trend is likely to continue.
Investing in the UK
Although Manchester and London are the two standout candidates in this list, it must be said that pretty much anywhere in the UK is a good place to invest right now, with prices rising and demand following closely behind.
The north west of England probably represents the best value right now, taking into consideration yields and rental growth, However, it’s highly unlikely that anywhere in the UK won’t be experience a similar boom.
The key takeaway should be for investors to ensure they invest what they can in the market right now, to make the most of these increases and the surge in demand, as competition is likely to mean that prices will continue to increase.