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10 Reasons to Choose Property Investment 2023

10 Reasons to Choose Property Investment 2023

Download Your FREE Guide to Why 2023 Is the Best Year to Invest in Property Now

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As we venture into a new year of economic uncertainty and significant political instability on both a domestic and global level, 2023 may not initially present itself as the year to invest in the UK property market. 

However, amid this tumultuous period, a number of factors have combined to create a perfect storm when it comes to investing in property this year.  Here are 10 reasons to seriously consider property investment in 2023.    

1.) 2023 Property Market Forecast

While earners across the UK are increasingly feeling the pinch in terms of the cost of living, and nationwide strikes appear to be continuing with no resolutions in sight, it would be reasonable to assume that the property market forecast for the coming year could be a bleak one. 

Interestingly though, this period of widespread financial difficulty could make 2023 an optimum time to invest in property, prompting the question that many already expect they know the answer to:

Will Property Prices Fall in 2023?

Put simply, yes.  According to property experts Savills, property prices could fall up to an average of 10% across the UK this year.  The London market is expected to be hit the hardest with a potential price drop of 12.5%.  While the North West along with Yorkshire and the Humber will experience a lesser but still significant fall of 8.5%. 

This comprehensively answers the question – ‘will property prices drop in the UK 2023? – presenting a bleak outlook for this year’s property market, especially after the sustained levels of growth that have characterised the post-pandemic years. 

However, a nationwide decrease in property values to this extent presents a major opportunity to investors who have the financial means, especially when we consider the market predictions for the next five years, bringing us to our next point.   

Property Investment

2.) Predicted Value Growth

Financially, investing in property is one of the most lucrative ways to earn a return on investment.  But if investors really want to reap the full rewards, they should treat it as a long-term strategy and consider future market forecasts.

Following this year’s expected slump, experts predict UK property values to increase by an average of 6.2% by 2027.  While London will still not have fully recovered within this period, there are some other regional winners, most notably the North West, which is expected to see a price growth increase of 11.7%.  This presents a major capital growth opportunity for investors to earn big returns by purchasing property for much less this year. 

3.) Rental Growth

One of the main reasons for investing in property is the regular rental income that it provides, and going by the UK rental value growth forecast for the next five years, it’s good news if you’re considering an investment. 

Between now and 2027, Savills predict a rental value growth of 18.3% across the UK, with a 6.5% increase in rental values forecasted for this year.  Along with a significant drop in property prices, this makes property investment 2023 an even more desirable proposition. 

4.) Two Types of Investment Returns

As well as being highly lucrative, buy to let property is also a fairly secure and versatile means of investment.  This is because it presents more than one way of making sizeable returns.

In times like these – those of economic turmoil and political instability – investors can opt to hold onto their property until markets stabilise and its value again begins to increase.  They can then choose to sell their property for much more than it was initially purchased, earning them major capital appreciation. 

However, the true beauty is that during the low periods, investors will still earn a regular rental income.  From a current investment perspective, this is exactly the type of opportunity that 2023 presents.

5.) Supply & Demand

Another factor making buy to let property a secure investment proposition in 2023 is the current ratio between supply and demand.  In a recent article, the Guardian highlights that demand for rental accommodation in the UK has risen by 23% since 2021. 

Driven in part by unaffordable mortgage rates forcing first-time buyers to hold off on their plans to purchase a home, demand for rental property in the UK now vastly outweighs supply.  For potential investors, this means that any buy to let property will be easily tenanted, providing an immediate rental income and accommodation to those that need it. 

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6.) Range of Investment Opportunities

One of the perks of the property market is that it presents a wide range of investment opportunities.  While one and two-bed residential apartments may be what initially come to mind, student and commercial properties present equally promising propositions. 

For instance, the UK student accommodation market is currently valued at £4.2 billion and with increasingly popular and more affordable student destinations like Liverpool and Manchester struggling to meet the demand for rental accommodation, there are huge investment opportunities here.  Additionally, purchasing property from different markets allows investors to diversify their portfolio meaning external economic factors will be less impactful.  

7.) Off-Plan Investment

As an add-on to the previous point, there is more than one way to purchase investment property and that’s where off-plan investing comes in.

This is when investors purchase property before it’s been completed, usually for below market value.  In addition, property investment companies often offer investors a range of flexible payment structures, allowing them to pay instalments at different points up until completion. 

 At a time when the answer to the key question – ‘will property prices fall in 2023’- is almost certainly yes, off-plan investing is an excellent way to invest in property as by the time the property is complete, it will almost certainly be worth more than it was initially.

8.) Lower Risk Strategy

Although investing in property brings with it a certain degree of risk, it is one of the safer, more assured investments out there.  Compared to investing in stocks for instance, which can fluctuate in value by the hour, the property market is less influenced by external factors and is easier to predict.

Property investments can also provide a degree of financial security during periods of high inflation.  When the prices of goods and services rise, property and rental values often follow suit, offering investors protection against challenging economic circumstances. 

9.) A Truly Passive Income

Unlike many other passive income streams which require a lot of time and effort to get off the ground initially, investment property can be completely passive from day one. 

This can be achieved by hiring a property management company to handle all landlord duties.  Inevitably, this will come at an added cost, but if the goal is for the property to generate an immediate passive income then it is well worth it. 

10.) New Investment Hotspots

Due, in part, to the recent market developments highlighted above and the fact that London property is becoming less and less affordable, a number of new investment hotspots have quickly established themselves across the UK in recent years. 

Key among these are the thriving North West cities of Liverpool and Manchester, where property prices are an average of 40% lower than those in London.  Rental yields in the North West currently sit at an average of around 6%, while property values are expected to grow by 11.7% by 2027. 

The buy to let property market in the North West is growing faster than anywhere else in the UK and currently offers a much more affordable investment opportunity than London, yet another reason to enter the market this year.    

Is Property Still a Good Investment in 2023?

All things considered, 2023 looks set to create a unique and rather unlikely opportunity in terms of property investment. 

With property prices set to fall this year before quickly getting back on track in 2024, investors should seriously consider acting on this major capital growth opportunity. 

Additionally, it is well worth paying close attention to the North West buy to let property market as an area of lucrative investment. 

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Why Modern Property Development is More Efficient Than Ever Before

Why Modern Property Development is More Efficient Than Ever Before

Interested in the growing property landscape in the UK, and perhaps looking into investing for 2020 and beyond? Here are some of the many reasons why modern property development is more efficient that even before, and so worthy of your attention.

It slots into the city nicely

When looking at cities around the country, the demand for prime living spots is high. There is often reduced space to work with, and it might feel like securing a lucrative property within one of the top areas can be impossible. However, many properties actually make the most of the space that’s available, and there is still an abundance of new properties being constructed in desired areas each day.

If you look at Liverpool, for example, the Baltic Triangle area was a once abandoned warehouse sector of the city. Today, the area has now been refurbished and retrofitted with modern, residential property, and a ton of different digital businesses that have quickly become a significant pillar in the city’s thriving economy. So much so, in fact, that new developments are ongoing as the spot is deemed by many as one of the trendiest areas to live in the UK.

Other spots in Liverpool are also founding the basis for ideally located accommodation. A £5bn Liverpool Docks regeneration project is also ongoing, forming the basis for even more job opportunity, tourist attractions and residential property. This is the trend with many cities around the country, as statistics show that more people are beginning to migrate to urban areas in search of better overall wellbeing with regard to wealth and job opportunity.

  • Inside the property

This efficient usage of space also translates from the architecture and design of modern building blocks and towers, into the insides of the individual studios, one bed and two bed apartments themselves. If you look at some of the properties around the Liverpool and Manchester area, many of the apartments that they offer to investors come fully furnished with innovative solutions such as beds with storage compartments and wall hanging space. Look to the Poets Place or Fabric District Residence developments for examples of how modern builds use sleek designs and compact spaces to their advantage.

Remember, if you’re an investor looking to purchase a city-centre apartment or flat within a new build complex, it’s important to consider the amenities and facilities within the building itself, not just the individual apartment. Many of these properties offer luxury add-ons and bonuses in order to both entice students by making the property stand out, and make up for the smaller space by way of bonuses. Examples of these modern luxury amenities include built-in spas, gyms and even swimming pools; generally, the idea is to give tenants somewhere exclusive to unwind and socialise outside of their immediate personal apartment space.

property efficiency

It uses technology to its advantage

Another huge benefit of investing in modern property is that you can utilise its modern sensibilities and integration of technology, and this can help down the line in a ton of different ways. Not only is your investment forward thinking and better futureproofed for in the years to come (which is an extremely important factor to think about when you consider that property is a long-term investment strategy), but technology is an enticing factor to tenants and young people, and it can actually save significant amounts of money down the line due to better building materials. Modern apartments and houses tend to have far fewer leaks and better insulation, so you can expect the heating quality to be better of a winter.

Being brand new, modern build property developments are also free from long-standing problems that start to pop up in an existing house. When you purchase or inherit an existing house, you’re also inheriting all of its issues, and the outstanding literal cracks begin to show themselves as the weeks and months progress. These issues can be costly to fix and also an extreme inconvenience for both you and any potential tenants, who won’t thank you for any disturbances and problems they weren’t made aware of when originally moving in.

There might be a couple of initial hitches and stutters when things are getting set up and off the ground for the first time in a new property, but so long as you choose to go with an established developer that has a proven track record, you will typically find the process much smoother and more stress-free than with an old-style property.

It’s competitively priced

Despite increasingly integrating technology into designs and building structures more thoughtfully with modern trimmings and sensibilities, new properties are often affordably priced for investors, especially those that are in off-plan stages of development:

Off Plan Property in the investment, market refers to a brand new property that is still its development phases, and so hasn’t yet been completed. With building work going on at many opportune spots throughout the country there are a lot of spots that will be valuable in the years to come thanks to strong capital growth.

Another great feature to off-plan property is that it is usually offered at a below-market-rate, meaning that as an investor you can get a brilliant deal on a property that is projected to grow in value. Purchasing the prospected property initially at a lower price, many investors have experienced capital appreciation/house price growth in their purchase before it has even been completed, and keys handed over to the first tenant.

There is some uncertainty surrounding new build property, specifically off-plan and its safety as an investment strategy, and this is understandable. After all, you are investing in something that doesn’t yet exist. Thankfully, in the same way, that strides are being made with technology and its use within property construction itself, modern tech such as drone footage and VR viewings give immersive insight to investors.

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6 of the Best UK Investment Blogs to Follow

6 of the Best UK Investment Blogs to Follow

The internet can be an incredible resource for valuable and helpful investment guides and advice, not just for funny cat videos. Want to read some more into investment and finance? Here are six of the best UK investment blogs you should be reading.

Financial advice blog – The Motley Fool

https://www.fool.co.uk/

You might think that a blog with the word ‘fool’ in the title might be something to avoid rather than follow and take inspiration from, but with a purpose statement of making the world “Smarter, happier, and richer”, The Motley Fool makes for quite the popular resource. Established over 20 years ago and covering a wide range of different relevant topics, from up-to-date news, to general blog posts, to guides, the ‘Full-time fools’ and ‘foolish freelancers’ produce a ton of different content. The blog is easy to navigate and use, and is a great resource for anyone looking to become more savvy with their money, and also perhaps look into investment as a financial strategy for the future.

Split into different sections at the top of the site, the Motley Fool gives the latest share tips and guides on how to invest, retirement planning, and personal finance. Thinking of looking into and investing in the stock market as a way of achieving financial freedom? Alongside the latest news and trends on the stock market, the site also gives clear cut advice on investing basics, how to buy shares, and also how to build a solid share portfolio. Investing in the stock market can at times be a volatile and uncertain practice, and so it’s good to have as much knowledge as you can on the field.

Property Investment blog UK – Property reporter

https://www.propertyreporter.co.uk/

Property Reporter is a news site dedicated to property investment specifically, and so if this is an asset class that you’re particularly interested in, it might be worth looking into. As stated above, investment markets are constantly changing and adapting into different things, so you need to keep your eye on developing stories and news pieces as they come out in order to keep you on track. Property Reporter, a property investment blog UK wide, is one of the many sites out there that does just that.

As part of a wider brand encompassing three different sites, Property Reporter is connected to two additional sites also, Commercial Reporter – which offers features and news on the ongoings in the general commercial business sector – and Financial Reporter – keeping you up to date on news to do with, you guessed it, finance.

UK Investment Blogs - Flag & Stocks

Investment advice blog – Skint Dad

https://skintdad.co.uk/

Another successful investment blog for beginners that has been featured in the likes of The Mirror, the Daily Express and on BBC Radio, Skint Dad is a great resource for those with a family and young children to look out for.  Not only does this website offer some great starting investment strategies for those with no savings stored away, but there are some helpful savings strategies outlined which might help you to get some starting cash together quite quickly.

Everyone loves to win something for free, and so as an extra component, Skint Dad also has a competition section, where you can win different prizes and gifts just for visiting. Even if you don’t get lucky, there’s always a nice piece highlighting some different offers and freebies available from high-street stores. They might not help you to establish a long-term investment portfolio, but every little helps, and the tips and tricks on this site might help you to get into a more positive savings mindset, which will, in turn, affect your overall investment prospects.

Investment advice blog – Money Magpie

https://www.moneymagpie.com/

An extremely popular financial resource that’s been featured on the BBC and Sky News, Money Magpie offers a range of different blog articles, tips and tricks on how to make money, how to save money, and how to manage your money. It’s as simple as that.

Everyone’s in a different financial situation, and sometimes it can be difficult to find advice and information that specifically appeals to your own personal investment/savings needs. Money Magpie helps to combat this by providing clear subcategories and ideas for parents, over 50s, students, unemployed, professionals, and those with disabilities. There should be something for everyone, and it’s a great investment blog for beginners.

Best investment advice websites – UK Investing Reddit

https://www.reddit.com/r/UKInvesting/

While this might not be a blog or dedicated site necessarily, it’s a great place to share your thoughts and ideas, and reach out to a like-minded community if you want an outsider’s perspective on how you’re considering investing. Being completely user-generated, you might not always get the valuable opinion of an expert, shall we say, but you also benefit from knowing there will be no bias on what you’re reading.

If you’re not familiar with Reddit, it’s a forum-like website separated into thousands of different subtopics, where users can contribute ideas and posts, ask each other for questions and support, and share success stories and images. This particular arm of the site, dedicated to investment in the UK, is full of helpful stories and trends from investors sharing tips and portfolio advice with each other.

Moneywise

https://www.moneywise.co.uk/

A personal finance magazine and website that has been going for almost 30 years, Moneywise is another valuable resource with a ton of blog posts and investment articles covering some insightful and entertaining topics. The website itself has a variety of helpful stuff, but their award-winning magazine is also just over £30 for twelve months, so if you like having something physical on your coffee table to read of a morning, alongside the investment blogs you should be reading, then there’s an option there for you.

Remember, try to read as widely as you possibly can, and take in information from a variety of different sources in order to form your own opinion. Ultimately, no one can make your own investment and financial decisions for you, and so you shouldn’t take one certain guide or article as gospel. Factor in your own contextual situation and things like current priorities, family, outstanding debts and balances etc, and forge your own financial plan. When done, you might even decide to publish your own guide and pay it forward to the next hopeful investor.

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The 4 Investment Types You Should Avoid

The 4 Investment Types You Should Avoid

There are a ton of different types of investments out there, each with their own rewards and benefits associated with them. Still, some are better than others in terms of factors such as the amount that you can stand to make from them, how trustworthy and consistent they are, and how much risk is involved.

For those looking into the idea of investing their money, here are four different types of investments, each with their own positives, and some negatives that you might want to avoid.

So, what are the 4 types of investments to avoid? Or at least to be aware of? And what’s the best type of investment? Here are our picks across some of the different types of assets to invest in currently.

What are the 4 types of investments?

Stocks

An investment within a small piece or ‘share’ within a company, stocks are one of the most common investment types that people choose to involve themselves in. With an abundance of different smartphone apps making it easier than ever to get educated and engrossed in the stock market, it can be an attractive way of getting started.

Stocks typically require a fairly hands-on approach, which can be tricky for busy working professionals or those who don’t take it seriously, as you need to monitor the market for tweaks and alterations, selling your stocks when high in order to make a profit. Some larger stocks do pay dividends – regular payments based on the company you invest in’s earnings – but unless you’ve got significant shares in a company, you won’t stand to make that much.

The trade-off here is that having a large share in a company could put you back at risk, as you’ve got all your eggs one basket and could face losses if your chosen company hits a bump in the financial road. It’s certainly a stressful endeavour trying to strike a balance with this investment strategy, and it’s why many opt to go for other asset types that are a little more plain sailing.

While investing in stocks can certainly prove to be lucrative, they require a lot of attention, and are often based on predictions that aren’t set in stone. One crucial factor that you should consider when investing is to consider what your goals are, as if you’re interested in establishing a stable financial buffer for retirement or later life, stock investment might not be for you. Certain stock investments tend to be volatile, meaning that they can fluctuate in value quite drastically, and so if you want to maintain and preserve your capital, you might want to put your money somewhere where you know it won’t disappear.

Managed mutual funds

Don’t want to decide on the individual companies and investments that you’re making, and would rather someone else manage your capital on your behalf? A mutual fund investment involves putting your capital into a pool with other investors into a portfolio, typically paid back in dividends based on the results.

One of the benefits of this investment strategy is that it can help to provide you with an automatically diversified portfolio, as your funds will be allocated to a range of different companies on your behalf. The risks that can occur, however, such as market fluctuation, inflation, and currency exchange (if your mutual fund diversifies to foreign companies, too), are still apparent.

Another risk associated with mutual funds lies in if the company or money manager in control of the fund cannot afford to make the payments required to the different investors. Those concerned about these sorts of risks, and want to have direct control over their own financial future, might want to steer clear from this strategy.

Bonds

The name’s bonds, savings bonds. As an investment strategy that has protections in place, a bond doesn’t come with the traditional worries and concerns that other investment strategies might have. Money that you put in is often protected, and you’re assured to get back what you paid in when it matures.

However, the security and simplicity of bonds can also be their downfall. Due to their low-risk and often fixed-rate, bonds aren’t the most lucrative of investment methods by a long shot, and investors with a significant amount of capital could stand to make a lot more on their investment if they chose to go with something different.

In attempt to diversify their portfolio, some investors choose to put some of their capital into foreign bonds from overseas, alongside their typical ones. The risks that come with this type of strategy are twofold: not only will it be more difficult to understand subtleties and shifts in the market, due to not being local, but unpredictable shifts in the exchange rate can come back to bite when the bond eventually matures.

Index Funds

Similar to mutual funds, Index funds are a great way of getting a diverse look at different types of investments, as they provide many different stocks based on an index of successful companies. Financial planner Jeff Rose advises paying close attention to ‘actively managed index funds’ as one strategy to avoid, as these companies increase the price of what was once a low-cost investment, and ask you to “pay for something for nothing”. There’s nothing wrong with allocating your funds to be invested on your behalf if you don’t have the time, but make sure it’s worthwhile.

What’s the best type of investment?

Types of investing strategies – Property

If looking for a long-term strategy, you might want to look towards the different types of assets to invest in.

Investing in property – once you’ve found the best type of property to invest in – could be a viable option. A tactile asset class that is often regarded among the most secure, it can be a great way to foster long term growth over time, in preparation for later life.

Investing in property, if you have the capital, can benefit you in different ways. First of all, as a long-term strategy, you’ll have control of a tangible, secure investment in an area of your choosing, with the potential of capital appreciation – growth in value on your original purchase price as the area develops. There are a lot of areas across the country at the moment that are experiencing mass amounts of growth, and so providing you select somewhere projected to continue thriving, this could be a great opportunity.

Perhaps the best type of property to invest in at the moment, certainly in the UK, would be student accommodation. In large part due to the vast number of students across cities in the UK, student property typically has low void periods, meaning that you will have a better chance of sustaining a consistent source of income through rental payments. The combination of relatively low purchase prices and high monthly rental payments also means that the yield percentages on student properties are also much higher than average, more so than any other property type.

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The Best UK Cities For Buy to Let Investment

The Best UK Cities For Buy to Let Investment

In the UK, there has been some uncertainty surrounding the property market, begging the question of whether real estate investment is worthwhile. While some investors have queries regarding Brexit, many have continued to pursue lucrative property investments. Buy to let property is one of the most popular real estate ventures in the UK, with many first-time investors capitalising on opportunities in some of the best buy to let hotspots in the UK. These are determined by the rental yield percentage, which helps investors figure out their expected rental returns before they decide to buy.

If you’re unsure where to get started in the buy to let market, you should take a look at some of the top-ranking cities in the UK, which have the highest rental yields in the country. By investing in these areas you can benefit from high rental returns as well as capital growth, as many of these cities are located in significant regeneration areas. This means you can benefit from below-market prices now while also benefitting from huge returns later if you decide to sell when the areas are fully evolved.

Liverpool

A city of culture that is constantly in a state of regeneration, Liverpool is home to some of the most lucrative buy to let areas in England with rental yields up to 10% in central postcodes including L1. This area has gone from strength to strength since Liverpool’s crowning as the capital of culture, and more investors have flocked to this northern city where they have purchased properties near massive regeneration sites like Liverpool One, which is a large residential and retail complex in Liverpool’s city centre worth £500 million.

Recent transformations have taken place near the waterfront, with Liverpool’s famous waters being completely reinvented to improve the economy through mass tourism. This has also transformed derelict neighbourhoods like the Baltic Triangle which was once home to empty warehouses but is now known as one of the most sought-after locations for both residents and businesses. Here you can find the Baltic Market – a cultural hub full of food stalls, bars, and live music, which was one of the first venues in the area. There are also a variety of businesses which are there to stay, as well as plenty of off-plan property developments which have proven popular with investors and tenants.

Manchester

Another northern city that has taken the buy to let market by storm is Manchester, which has also been dubbed as the UK’s second city due to its thriving industries and economy which are in close competition with London. Many companies and UK citizens have moved away from London and headed to Manchester to benefit from a more affordable lifestyle and lucrative opportunities. This population increase has persuaded investors to look towards the capital of the north to benefit from high rental yields and unmatched tenant demand across Manchester.

Central Manchester has become popular with young professionals who are looking to live near lucrative job opportunities, while also enjoying the convenient lifestyle that comes with city-centre living. This includes neighbourhoods like Ancoats, which has been labelled one of the trendiest areas in the UK, where you can find water-front apartments with everything you need on your doorstep. Students are also privy to this area, as well as Salford, which has become more popular since the construction of MediaCity, where the University of Salford and esteemed media companies like BBC and ITV now reside. This is excellent news for investors who are looking to purchase properties in this area as demand will be significantly high, enabling them to up their rental charges.

"This includes neighbourhoods like Ancoats, which has been labelled one of the trendiest areas in the UK, where you can find water-front apartments with everything you need on your doorstep".

Birmingham

The other contender for the UK’s second city, Birmingham is also an accessible location for renters, with it landing itself in the fourth position in the top ten of the UK’s best buy to let areas in 2019. They may be set to increase their rank if plans for the HS2 train line come to fruition, as this will offer residents faster and more convenient access to other major cities including London. This connectivity is also set to increase further regeneration in the city centre as an extension of Birmingham’s Big City Plan, which involved the development of transport links, housing, office and retail space which is what the city needs.

Birmingham is an excellent location for investors as it is one of the most popular cities for young professionals, with 40% of the population under the age of 25. This generation is more likely to rent rather than buy, as on average this group does not have the capital to buy homes and would, therefore, prefer to rent. Graduate retention is also high in this West Midlands city, as students are attracted to its affordable prices, wide-ranging job opportunities and quality of life, which makes them more likely to stay.

Glasgow

Investors looking to find the highest rental returns in the UK should turn to Glasgow city which offers yields up to 7.5 per cent and has shown continuous growth year on year. This is due to several factors, with one being the talent available in Glasgow, with 46% of Glasgow residents being educated to degree level in the city known as the academic heart of Scotland. This is great news for businesses who have made a move to this Scottish city and has resulted in a massive surge of investment interest. Investors look to target the massive student population who are enrolled in four of Glasgow’s top universities and are looking for suitable accommodation in sought-after areas like The Shawlands or Merchant City.

Glasgow has also become a prime spot for businesses who are looking for convenient and connected office space in the heart of the city centre. This includes tech companies who are looking to be located near the Clyde Waterfront Innovation Campus at the University of Glasgow, which is set to be the Scottish version of Silicon Valley. This will entice techpreneurs and students to Scotland’s second city, which will, of course, enable demand to increase for housing surrounding these areas, which investors should capitalise on.

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Manchester Property Hits the Jackpot For Capital Growth

Manchester Property Hits the Jackpot For Capital Growth

One of the first things that buy to let investors consider when venturing into their next property deal, is whether their chosen asset is going to increase in value over time. Without a rise in price, property provides little to no potential for capital growth, with only assured yields a source of rental income. Although future house price predictions can never be accurately forecast and market conditions are subject to speculation, there are some clues when it comes to finding the best areas for capital growth that will help provide a secure and profitable exit strategy for investors.

The latest statistics released by Hometrack who analyse house price trends across 20 of the UK’s largest cities put Manchester on top for capital appreciation on property investments. Dubbed the largest power-base next to London, the northern location overtakes southern destinations with recorded price inflation over the last 12 months as high as 7.7%. Compared to rival property hotspot, London, where house price growth was only 0.8% in the same period, it’s clear that Manchester is leading the way for the most lucrative property investments in 2018.

The data from April this year shows how Manchester’s positive growth has been consistent over the last three months as well as the past month respectively, with incremental bursts beating fellow northern hotspots in Sheffield and Newcastle. Cambridge and Oxford are somewhat add-ons of the London market that used to contribute considerably to its price growth, but these areas are now seeing bigger slumps than ever and are struggling to rank highly for price inflation. Across the two locations, growth only reached a high of 2.1% over the past 12 months in a reflection of the dwindling property market towards the south shores of the country.

According to Hometrack, the average growth rate for cities is 4.9% and 4.5% across the UK. Manchester’s colossal surge in house prices outstrips both of these figures to highlight that it’s a major contender for property investment, not only surpassing London but most other parts of the UK too. But how do investors know that the trend is going to last? Property company JLL have in fact predicted that Manchester’s capital growth will reach 28.2% between June 2017 and June 2021 in an immense market revolution.

Rising house prices tend to have negative connotations, but for buy to let investors, price inflation equals property gold. The average Manchester house price is £153,600, which is still relatively low when compared to the average of £490,100 in London. Investors can acquire lower-cost properties and receive better prospects for capital growth in the future to allow buy to let players to cash in on their Manchester investments.

Manchester’s record levels of house price growth haven’t been witnessed in the market since 2005, awarding it with the UK’s strongest regional property rating, and experienced companies like RW Invest are urging investors to get involved as soon as possible in order to reap the benefits of capital appreciation. The underlying market conditions indicate healthy market strength in Manchester which also assures investors with affordable properties and strong rental yields. Now establishing itself as a go-to location for investment in buy to let property, Manchester has become a lucrative alternative to London and it’s notoriously trying market.

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