Property is one of the oldest and most widely-known forms of investment.
So long as you put the work in, even in 2023, it can be a rather lucrative venture for many investors.
In the UK, property is still a thriving market.
According to a recent report by Zoopla, the 2-year boom experienced by the residential rental market is set to continue steadily into this next year, with residential rents continuing to run well ahead of earnings growth. Average rents for new-lets have risen by 11.1% in the past year, with average income increasing by 6.7%.
Whilst rental inflation has slowed slightly from 12.3% in mid-2022 alongside this, there is no clear sign of imminent slowdown.
As well as this, recent predictions see property in the UK rising by 6.7% across the next 5 years, with certain regions (such as the North West and Yorkshire) expected to increase by 11.7%.
All of this is good news for investors, with the potential for strong long-term capital growth and rental returns.
But, with the market constantly shifting and fluctuating, where should you look to find the best investment?
In this guide to the best places to invest, we will explore some of these cities and hopefully help you start your property investment journey today!
Famous in the property investment world for its high yields and reasonable prices, Manchester is consistently one of the best places to invest in the UK.
And, with prices in the North West expected to increase by 11.7% by 2027, it would be no surprise to see this city topping investment guides for years to come.
Quickly becoming intense competition for London, perhaps even eclipsing it entirely in some regards (i.e., affordability), the city has also seen an increase in world-class investment opportunities lately and unrivalled market demand.
Furthermore, a recent report has found that the ratio between supply and demand in the city has caused rents to rise rapidly, making it the second-strongest city in the UK in terms of rental growth (again, right on the heels of the capital city).
Manchester is also expected to see the highest economic growth rate out of all major UK cities, meaning this year is the perfect time to invest and get the most out of the city’s capital appreciation potential.
Second to Manchester in terms of capital growth, Liverpool property investment offers a variety of advantages for those looking to get involved.
Like Manchester, this is an area that frequently appears on investment guides, owing to its robust regeneration, property prices and demand.
Put simply, Liverpool is a top choice for many investors – with the city being one of the most affordable and lucrative on this list and the market as a whole.
The maritime city has beaten out some of the largest cities in terms of capital growth, seeing increases of 14.1% on the year and 32% across the last five years.
Throw in a vibrant student and young professional demographic, as well as constantly growing demand and rising rental prices expected in 2023, and it’s practically any would-be investors’ dream venture.
Alongside this, in an effort to combat climate change, many developments have begun to implement eco-technologies to transform their units into ‘eco-properties’.
This is precisely what the name implies – i.e., developments that are purposely built with sustainability in mind – and offers a unique selling point for investors/landlords (as well as being quite beneficial for the planet).
While this city boasts some impressive gross rental yield (9.23%), its capital growth is slightly lower than the other two cities on this list.
By 2027, the city is expected to see price growth of 9.6%, which – while high – is, of course, slightly below the other examples.
However, this is a perfect example of why average stats don’t always tell the whole story.
Like the other cities on the list, Glasgow offers a great investment opportunity in 2023.
Alongside ongoing expansions to its transport links, including a “game-changer” metro system to accompany the subway that loops around the city, the city’s affordable prices and high costs could potentially bring in some impressive returns for investors.
However, it’s important to note that growth has been sluggish in recent years, so you should only consider Glasgow property investment if you are looking to value rental income over capital appreciation.
Whilst these cities represent some of the best to invest in right now, as with all investment opportunities, things can change at any given moment.
So, it’s crucial that you keep up to date with the latest statistics and new additions to the world of property investment.
To keep it simple:
- Follow the markets.
- Watch out for the latest population and growth data.
- Make sure that you’re putting your money in the right place.
With UK house prices expected to rise by 6.2% overall in the next five years, now, more than ever, might be the best time to get started with property investment!