When investing in property it can be difficult to decide where is best for you. In this blog, we will highlight areas best to invest in based on house price trends, average monthly rental and yield. The information below has been collated using Property Deals Insight tools.
Over the last 5 years, Manchester has seen a dramatic increase in house price trends. House prices have increased by 43.27% thanks to a combination of factors, including investment in infrastructure and the migration of businesses from London to the North. Manchester is a major city in the Northwest of England with a rich industrial heritage.
In recent years it has seen significant investment from authorities, making it one of the most well-connected cities in the UK, physically and digitally. The area has also become a media hub thanks to MediaCityUK, the home of the BBC, ITV, The Hut Group and many other household names.
The city has five universities, making it a great place to source talent, and a huge 60% of graduates from the area choose to stay in the North West to live and work providing a great opportunity for property investors.
North Norfolk making the list may come as a surprise but in the last 5 years, house prices have increased by 39.18%. Why? Well, with more families opting to holiday in the UK for staycations combined with an increase in people moving to the coast for a slower pace of life, North Norfolk is a great place to consider investing. Some North Norfolk hotspots include Cromer, Holt, Sheringham and Fakenham.
North Norfolk also has a great range of primary and secondary schools making it appealing to families looking to escape the rat race of London and enjoy spending time outdoors with their children.
The local authorities have also invested £400,000 in the regeneration of Cromer Pier as well as around a further £600,000 investment in the surrounding areas. The local councils have also been investing in improving transport links between towns and villages, making it easier for residents and visitors to move around without the need for a car. If you are looking for an investment that is a little different, take a look at North Norfolk.
Leicester is renowned for being one of the most multicultural cities in the UK and it seems that is not its only attraction as house prices in the city have increased by 38.85%. Like
Manchester, Leicester is a city on the up. The city has 5 theatres, a great shopping centre in the form of High Cross, and endless dining options to suit every taste. A city packed full of culture from arts to food to history, it is a city that has something for everyone and a great place to consider investing.
The city has continued to invest in transport links and has a direct train line to St Pancras, King’s Cross making it a great option for commuters looking to get more for their money and enjoy a little piece of the countryside with all the city benefits.
Leicester is another student-heavy city with two great universities as well as several colleges, providing an opportunity to invest in student accommodation. With around 66,000 students in the city, student accommodation is always in high demand.
Another city in the Midlands makes our top 5 – Nottingham has seen an increase of 37.62% over the last 5 years. Famed for its role in the Robin Hood legend, the city is home to museums, art galleries, markets and much more. A city that also has strong student connections with two well-established universities and multiple colleges, but it isn’t just a student hub!
The City Council has already begun putting in place a secure plan for recovery from the Coronavirus pandemic, including support for local businesses. The city is on track for an intense regeneration of the Southern Gateway, a £250 million redevelopment. There has also been investment in facilities such as a shopping centre, restaurants and other leisure facilities. The area has also benefited from HS2, providing better and faster links to London, making Nottingham a great option for families looking to move away from London but who still require easy access to the country’s capital for work.
Liverpool is the fastest growing city in the UK outside of London, so it is no surprise the city has seen a 34.36% increase in house prices. A city with a deep-rooted music heritage, this city thrives on culture from pop music to art and more. The city also boasts great transport links by sea, rail and air.
A more attainable city to live in than London, Liverpool has become popular with young professionals determined to get on the property ladder. With over 250,000 students each year in the area and more than 40% of graduates finding employment in the city, the first-time buyer market provides a great opportunity.
Let’s not forget families, as there are lots of great schools in the area, making Liverpool a popular location for those with young children as well as those of secondary school age. The local authority continually invests in education and the Skills for Growth agreements across the city join public, private and academic organisations to address current and future needs.
It is no surprise that all 5 of the top areas to invest based on monthly rent are in and around London. We have selected these areas based on a 2-bedroom property.
At the top of the list, with an average monthly rental of £3,314, is the City of London; this encompasses the financial district. The area has years of financial history and is home to some of the country’s biggest earners. The homes around this area include new-build, modern high-rise apartments as well as character-rich older properties.
With London property prices sky-high, many are opting to rent to get a taste of the city. All areas of London receive regular investment and as the country’s capital, there is no doubt London is a great place to invest.
The Royal Borough of Kensington and Chelsea is an Inner London borough with royal status, which also comes with a royal rental price tag of £3,109. Despite being the smallest borough in London and the second smallest district in England, the area is densely populated. This affluent borough holds some of the most prestigious postcodes including Notting Hill, Kensington, South Kensington, Chelsea and Knightsbridge.
The area is home to Harrods and Harvey Nichols along with a long list of high-end brands and boutiques, making it a shoppers’ paradise. As well as being a shopping haven, the borough is also home to a whole host of museums, universities and restaurants.
Properties in the borough of Kensington and Chelsea have always been in high demand and it is unlikely that will change, making it a great place to invest.
An area at the heart of London, Westminster is the 3rd best place to invest if you are looking for areas with high monthly rent, coming in at £3,080. Another area popular with affluent professionals, the area has seen investment in infrastructure and continues to be one of the most popular areas for international businessmen and women to stay.
The city of Westminster is one of the UK’s leading business centres, offering great access to new talent, the chance to widen networks, develop new business leads and greater access to finance options. If you are looking to invest in an area with incredible connections, Westminster is the place for you.
Camden takes the 4th spot on our list with an average monthly rent of £2,237. You may not have considered Camden for investment but despite its alternative reputation, the area is popular with bloggers and influencers who are now some of the highest earners in the country, as well as artists and musicians.
The town is famous for its markets, filled with bright colours and independent sellers. Camden also has a rich food scene with flavours and dishes from all across the globe. As well as its markets and street food, Camden is home to street performers and great live music venues. Away from the lively centre is a pretty canal and some luscious green spaces to explore. Camden really does have something for everyone.
Richmond upon Thames is a borough in the South West of London with an average rental fee of £1,941 a month making it slightly more affordable. Richmond upon Thames is the only London borough on both sides of the River Thames.
Famed for its beautiful green park, Richmond is a great option for families looking for a London home with space for children to play. Across Richmond upon Thames, there are more than 100 parks and open spaces providing lots of safe spaces for children to run around, as well as plenty of places for young couples and professionals to spend summer evenings.
The area is also popular with rugby fans as it has close proximity to Twickenham stadium, home of England Rugby. For those looking for some culture, Richmond upon Thames is home to Hampton Court Palace and Kew Gardens. There really is something to keep everyone happy in Richmond upon Thames.
Our next top 5 focus on the areas to invest that produce the best annual yield. We have selected these 5 areas based on the average yield for a 2-bedroom property.
This may be a surprise for some property investors, to see a town in Cumbria at the top of the yield list, but with an impressive 13.42% average annual yield it should not be discounted.
Barrow-in-Furness is a town steeped in industrial heritage and in the 19th, century became the biggest iron and steel centre in the world. Its deep history makes for some great transport links thanks to well-established sea and rail transport network.
Barrow-in-Furness has 60km of coastline, historical buildings and is in close proximity to the Lake District, making it popular with hikers and those who love the outdoors. There is lots for families to enjoy including a zoo and theatre. If you are looking for somewhere a little different from the usual investment spots then definitely take a look at Barrow-in-Furness.
We won’t spend too much time on Nottingham as this is the 2nd time it has ranked in one of our top 5 areas to invest in but it is clear to see that there are plenty of fantastic opportunities for investment in Nottingham. The city sees an average annual yield of 8.31% and, as we stated a little earlier in this article, is a great city.
The third area from the midlands to make a top 5 this year, South Derbyshire combines a mixture of well-developed urban areas with historic rural settlements. The average annual yield for the area is 7.96% making a great area to invest.
What towns and villages are in South Derbyshire? Some popular towns and villages include Aston-on-Trent, Bretby, Cauldwell, Hollington and Kings Newton. The area has great schools, making it popular with families, as well as great transport connections to London. You can be in London in just 89 minutes, offering the best of both worlds for commuters of city life and weekends in the countryside. It is easy to see why South Derbyshire takes the bronze position on our top 5 areas to invest based on annual yield.
For the 4th spot, we are heading back up North to Tameside. A borough of Greater Manchester, Tameside is just behind South Derbyshire with an average annual yield of 7.73%.
In recent years, Tameside has received and continues to receive, a high level of inward investment. The area continues to see a steady increase in companies relocating from other areas of Greater Manchester as well as from across the UK, thanks to a strategic motorway network.
There has also been significant investment in Droylsden Marina where high-quality homes, restaurants, hotels and commercial offices are being developed. This multi-million-pound investment is part of a 5-year transformation of the south of the town, an investment sure to only increase annual yield, if choosing to make an investment in the area now.
Stockton-on-Tees also referred to as Stockton, is a large market town in County Durham and the average annual yield for the area is 7.05%. Another area in the North of England that continues to see investment from local authorities as well as businesses. Major regeneration and development across the Tees Valley area is underway and will see the development of both residential and commercial properties.
A hub for the manufacturing industry, investment in the area is attracting international businesses looking for a new home for their factories. The area has a strong labour
workforce with great skills and the cost of living in the area is low, making it an attractive option for those looking to get on the property ladder.
We hope this article has given you some new areas to consider if you are looking to increase or begin your property portfolio. For more information and advice please contact us and we will be happy to help.