Top 10 Best places for property investment in the UK 2021
Updated: Aug 16, 2021
UK housing market has been booming to say the least as we bounce back from the pandemic woes. Many had predicted a market crash or some sort initially at the start of the pandemic but the government had other ideas. Considering the UK tops the list of tax income from property industry and the industry overall contribution to macro-economy amongst the G7 countries, it only makes sense that the government will do everything to keep the industry booming to keep the economy going. This market was fuelled by the stamp duty holiday as well as first time buyer 5% deposit scheme as per the government's plan. We saw the ever rising asking prices and the time it takes to complete the sale was also significantly shortened. The conveyancers we spoke to have informed us that they had been extremely busy where they had to work overtime to keep the clients happy.
We don't know whether the market's record-breaking prices and transaction levels will continue into 2021, but one thing is certain: the market will go in either direction. For investors, the question will be, more than ever, where are the top cities and towns to invest in 2021 due to shifts in priorities transforming the landscape of demand across the UK.
In this blog-post, we take a look at the top 10 places to invest in the UK analysing trends and data from multiple key sources including JLL and Zoopla, taking account of top areas for both past and forecasted rental yields and capital growth.
Where are the best UK property investment areas for B2Ls?
Before we jump into talking about the best areas to invest in the UK, we first need to understand what metrics we use to analyse and evaluate the investment opportunities. The key metrics we use are-
Property Prices – Rental Yields – Tenant Demand – Population – Regeneration – Career Opportunities – Tenant Demographics – BTL Opportunities – Transport Links
Average Price: £202,162
Average Rental Yield: 5.4%
Price Growth in Five Years: 14.2%
Birmingham has had a strong run for the past five years and it is at the top once again as the best place to invest in the UK. Average rents have gone up by 30% over the last 10 years and are expected to rise by 15.9% over the next few years.
Tenant demand and populations tend to go hand to hand and the good news is that Birmingham's population is expected to hit 1.24 million by 2030. In terms of transport link we have a midlands metro extension and other investment projects such as HS2 and Common wealth game 2022.
Average Price: £242,311
Average Rental Yield: 5.37%
Price Growth in Five Years: 15.76%
Manchester, a true Northern powerhouse in terms of property, continues to gain traction as a top investment destination, with house prices projected to rise another 17.1 percent, according to JLL.
The city is now the #1 choice for young professionals in the North West, thanks to a plethora of career options in worldwide corporations and an 84 percent increase in employment between 2002 and 2015.
Manchester shows no signs of slowing down, with the Great North Rail project set to begin in 2022, allowing 40,000 more people to commute throughout the North's major cities
Average Price: £186,527