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Which Areas Of The UK Demand An Investment Attention In 2021?

areas to invest in uk property

The primary motive of the investors, while they invest in properties, is to maximise their capital growth to that extent where money will make more money. The investments in property markets have been seen to remain subdued for quite a lot of time but 2021 will be a year that will see quite a lot of shifts in investments in this particular market. House price inflation is predicted to come down steeply and hence investors are looking forward to appreciation with hunting the best property investment areas in the UK. The towns and cities all over the UK have been booming up and preparing themselves to gear up for the investments to flow in. Places like Liverpool, Cambridge, Glasgow, Birmingham, or Leicester are showing steady and rewarding growth in property prices, and investment returns and they are readily considered to be the best places to buy property in the UK.

Keeping in mind the investor’s objectives of proliferating and distributing their capital growth, this is an article written for you to review and generate a steady flow of appreciative cash. Keep following this to understand the current best locations for you to put money in whose return will be secured and high yielding.

So let’s look at the cheapest places to buy properties in the UK to invest for yield. If you are receiving a yield on your investment, it measures how hard your money is working in the market. And to let your money work harder, you must choose the best property investment areas in the UK. To understand your returns better, you can divide the annual rental income by the property value and express it as a percentage. You will find that there will be areas in the UK where the rental values, as well as the yield, is the highest but the property purchase and acquisition prices are too shooting the ceiling. So, settling for areas that are highly over-priced will hugely bring down your yield percentage and that is something you do not want to do.

Below is listed a summary of the best and highest yielding places in the UK:

  • Liverpool L1: 10% yield
  • Falkirk: 9.51% yield
  • Sunderland: 9.40% yield
  • Glasgow: 8.71% yield
  • Liverpool L11: 8.67% yield
  • Cleveland: 8.5% yield
  • Leeds: 7.92% yield
  • Cardiff: 7.61% yield
  • Manchester: 7.60% yield

These are the cheapest places to buy property in the UK and they are ideal for buy-to-let investments owing to the soaring rental returns that follow. Here we are going to discuss a few such top spots to invest your overseas income in.

cheapest places to buy properties in the UK

Birmingham

This is a place in the UK that undoubtedly tops the list for the past few years. This is because, since 2018, this city has been able to attract quite a lot of foreign direct investments from outside South East and London. This is a place that has been able to outpace every other city after London. This indicates that properties both residential and commercial are highly sought after and it is one of the best places to buy property in the UK in 2021.

Manchester

Manchester has been constantly termed as the best place to work and live in the UK. The city has a jostling vibe that attracts families and working professionals to shift their base and find it at home here. Manchester is seen to transform its skylines and residential patterns by inviting high direct investments from overseas into here. As a result, the rental returns are touching the sky and so are the yields on calculated and researched investments into properties.

Liverpool

If you are only thinking about buying-to-let investments, then Liverpool is not going to disappoint you. Liverpool has shown a strong investment yield, the highest in the whole of the UK. The postcodes of L7 and L1 are constant achievers of high yields as high as above 8% for the past five years. This city has been in greater demand because of newer developments coming in, greater career opportunities unfolding, and hence, the demands for tenants are also rising. Overall, it is a wise and the best place to buy property in the UK.

Sheffield

If the first time investors are looking to crack a deal with property investments, then Sheffield is that one place that you cannot overlook. Housing in this area is on the lower end of the scale and does not require a lot of funds to acquire the properties. With good rental yields of about 7.3%, your initial investment is surely going to get paid off and help your money roll more. The city is termed to be a shopping district and both the amenities and its appeal make more of the individuals to settle here affordably.

Leeds

This is a fancy area with the population jumping off over seven times quicker as compared to that of London which makes it clear about the undersupply of homes and properties in this location and how largely can your investment pay off with keeping a good profit margin. This is a notable location in Northern Powerhouse with estimated 7 billion euro developmental plans on hold which can make and proliferate the city to double its size in no time. Properties now affordable will touch prices that first-time investors cannot touch upon. So time is right to make an investment here.

Leicester

If you are searching for the best property investment areas in the UK, then Leicester is your solution because it has shown a growth of above 250% since the beginning of this decade. Leicester is termed as the buy-to-let property investment hotspot and the surrounding is quite cheaper as compared to other places in the country. The tenants also look up to residing here and there are lesser individual-owned and residing homes, making it a market with large potential to grow even more in coming years.

Nottingham

This is a centrally placed city in the UK, and nevertheless, it is a direct position offering access to key destinations across the country and is a great gateway for the investors to pour in finances and develop its infrastructure even more. The prices have seen a soar of about 20% since 2014 and its growth never seems to cease.

Oxford

The city brings back heritage and nostalgia every time it is thought of. From the history it bears to the globally acclaimed educational institutions the city has and its strong contribution in driving the economy, this is a place highly preferred by investors. Property acquisition is easy here and prices are always on a rise and so are the yields.

Cardiff

It is a highly fast-paced and developing city and one of the cheapest places to buy property in the UK. The city is undergoing complete regeneration and infrastructure is heavily funded through foreign investors as well. The connectivity across the nation through Cardiff is on heavy development and average rental yields have increased to about 4-6%. With the population in growth, this is a city you cannot ignore if you have plans to proliferate.

London

Investments in the UK and how can you possibly forget about the capital? The last decade has witnessed the prices soaring up above the reach of commoners and it is predicted to soar even more. This is one of the fastest developing areas in the entire UK and it makes a hotspot for every sort of investment and not only property. The population is rising by leaps and bounds and shortly there will be a good gap in the demand and supply of both residential and commercial properties. Though the property prices are quite high, including that of the home insurance as well, there will be no dearth of rental returns once you set your eyes here. Higher rental returns will promise you to pay off your mortgages, keeping considerable profit back in your pockets.

But to think that the UK has only the cities listed as the best areas for investment is wrong. There are towns scattered around the UK, Wales, and Scotland that too might be on your list of investments if you approach with a proper plan and research. You will be surprised to see how well these locations can pay you off in no time and also are on the path of growth in the upcoming years. Places like that of Falkirk, Kilmarnock, Edinburgh, Paisley, and Aberdeen have proven a respectable return and yield of consistent 7% and above. This is why investors are so keen to look out and search for rental properties in these areas.

Before finalising and moving forward with the ideal locations, try researching first with the postcodes of the places. Though at first, this is a very helpful tool once you start narrowing down, you need to dive deeper to understand the nitty-gritty of each location and give a second thought about investing. Checking the growth trends over the years will help you make a rough sketch on how your returns can be over time and take important decisions likewise.

Hope this article helps in your investment plans and is good to use. Wishing you a happy and safe investing!

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Fabrizio Cravero

Fabrizio Cravero

UK Property investor

Fabrizio is sharing his knowledge about investing in UK properties from overseas. He is based in Hong Kong and provides weekly guidance to his followers.

Fabrizio Cravero

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