Where is the best place in the UK to invest in property?
The UK is a great place to invest in property, with the opportunity to make returns on your capital in any area or region. As with anything, there are some areas that provide better returns than others and as a result become more attractive to savvy investors.
Before investing anywhere, it is important to do your market research and review the economic and social characteristics of the area. You are buying the property as an investment so it is important that it will be a good investment and deliver the returns that you expect.
So, where are good areas to invest in the UK? The answer, as with most things depends on your personal strategy. For example, are you looking for capital growth, higher monthly returns or a mixture of both? Is this a long-term or a short-term investment?
The North East of England has some fantastic returns available, with some terraced houses providing excellent monthly yields and a good tenant demand. At Switch we are based in the North West of England where you can also get fantastic returns on your capital – some of the best in the UK. So, this is where we focus our attention.
The property group, Savills, has predicted a 5 year property price growth of 28.8% in the North West, which is 7.7% above the UK average, and 16.2% above the prediction for London. Their data is based on Nationwide’s property data, which is one of the most respected data sets available. This makes the North West the place where you can expect to achieve the best capital growth between 2021 and 2025.
In addition, Seven Capital states that the North West has the highest rental yield average (important to note this is an average, with much higher yields available in specific areas of the North West such as the Fylde) of 4.69%, compared with 2.83% nationally. It is important to use a percentage return, as opposed to rental income because the average London property costs around £666,000 compared with just below £196,000 in the North West of England.
Savills believes that rental prices will rise by double figures (percentage) by the end of 2024. This is positive news for property investors, and it is important to remember that rental prices are a lot more resilient than property prices during times of economic difficulties.
So, if you are looking to invest in property, the North West is looking very attractive over the next five years, with the highest predicted capital growth and the highest average yields. At Switch, we are here to support you on your investment journey – no matter where you are based. That means that if you want to invest in the North West, but you are based elsewhere, we can help you to get the best returns on your investment with our fully managed service.
If you would like to find out more, then contact us for a free, no-obligation 20-minute consultation to see whether we can help you on your journey to achieving your financial goals.