Investing in the UK property market is still a good idea, even though experts say house prices may be flat in the first half of 2019. There are still many property hot spots in the UK despite the Brexit uncertainties: One has to know where to look.
While it seems that Brexit has only affected high-value properties (over £2 million) in London and other cities, the average house prices are continuing to rise across the UK, due to the positive price movements witnessed in the regional markets. The weakening of the pound has also made the UK property market attractive to foreign investors, thus keeping the UK property market afloat, even if some experts say it is barely so.
Research shows that the prime locations for property investments in UK are a blend of commuter hotspots, scenic towns and areas with ample employment opportunities. Property investors aiming for long-term fruitful investments – Here are some property hot spots to look out for in 2019:
Birmingham is the host to 5 university campuses and has the third largest inflow of graduates in the entire country. The accessibility of daily commute to London means Birmingham stands a chance for migration of working professionals. The predicted influx of workers coming to live in Birmingham and a projected population growth of c. 15% over the next 20 years makes it a potential property market to look out for in the near future.
Buy-to-let properties are often the best bet to invest in student-driven areas, i.e. around colleges and universities. Coventry, with 2 popular universities and a student body of over 50,000, offers exceptional rental yields with high occupancy rates. As a result, investors looking for a safer bet and steady monthly rental yield should consider Coventry on their priority list for property investments.
The lovely Scottish capital has been ranked as one of the best places to work and live in the UK. Edinburgh is a land of sceneries with easy access to the gorgeous Scottish Highlands, this combined with its rich cultural heritage, accessibility to education and healthcare makes it a perfect spot for property investments. With the economy growth observed last year, property prices in Edinburgh are predicted to rise by over third in the next one to two years. All these factors along with the appealing landscapes, make Edinburgh a prime area for property investors.
Factors such as growth in property prices in the past 5 years and the predicted rise in population by 12% play a vital role for Liverpool to be considered as a potential property investment hotspot. Ongoing construction and regeneration projects launched in Liverpool also make it a preferable place for investors looking for recently built properties.
Typically referred to as the ‘London of the North’, Manchester has always been one of the prime hotspots for investors, and the trend might continue in the second-half of 2019 as well. In addition to having the MetroLink tram extensions and attracting foreign investments, Manchester also attracts a considerable number of young people to invest in properties. ROI on rental properties is currently at c. 8% and with more than 30% properties being a potential source for private rentals, properties in Manchester can prove to be a brilliant investment.
The lead time for any property to be sold and house prices growth in a particular area are positively correlated with the high demand for investments. Properties in Northampton are currently making the shift from “Available” to “Sold Out” in just a period of 33 days. 5% increase in house prices was also observed in the last quarter of 2018 in this area. These factors make Northampton being a potentially great prospect for property investments.
A rise in employment opportunities indirectly showcases the potential for property buyers to attract working professionals searching for rental space. Warrington, being home to an Amazon warehouse and Omega’s to-be-built 17 acres warehouse, will lead the way for job openings in 2019. Migration of people for work has a positive impact on the local property market, especially buy-to-let opportunities. In addition, while Warrington is located between Manchester and Liverpool, many investors prefer it over its larger neighbours. Greater accessibility, lower buying prices with the potential for more jobs are the major reasons making Warrington one of the best areas for property investments.
Despite the adverse prediction of experts regarding house prices, due to weakened currency combined with various local factors, the 7 hot spots listed above should be on your list if you are considering a long-term property investment.