Best Locations For Buy To Let Property Investment In UK

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Best Locations For Buy To Let Property Investment In UK

Best Location For Buy-To-Let | When choosing the best investment property locations, it is essential to consider several important factors, such as rental yields, capital growth potential and ongoing urban regeneration initiatives. In this article, we will highlight the best buy to let cities in the UK (Liverpool, Manchester and Birmingham) based on the above mentioned criteria. Moreover, we will also introduce some nice overseas locations for investors to explore.

Table of Contents

Latest Rental Market Report By Zoopla

Highest Rental Inflation Locations In The UK

Zoopla has published its latest rental market report in March 2024. According to the report, as of January 2024, rents in the UK have risen 7.8% in the last year. Liverpool, Manchester and Birmingham are among the top 10 cities with the highest annual percentage change in rents. 

 

Table 1: Top 10 Highest Rental Inflation Locations In The UK

City Annual % Change In Rents Average Rent (pcm)
1. Edinburgh 11.5% £1,263
2. Glasgow 10.9% £951
3. Newcastle 10.6% £833
4. Southampton 10.0% £1,121
5. Manchester 9.6% £1,070
6. Cardiff 9.2% £1,119
7. Birmingham 8.6% £934
8. Liverpool 8.3% £801
9. Bristol  7.6% £1,389
10. Nottingham 7.4% £947
UK 7.8% £1,223

Source: Zoopla Rental Market Report, March 2024

 

Highest Rental Yield Locations In The UK

In terms of rental yield, according to Zoopla’s latest rental index, Liverpool ranks among the top 10 cities with an average gross rental yield of 7.43%, while properties in the North West offer an average gross rental yield of 6.52%. Properties in London offer the lowest gross yields in the UK, averaging 4.92%.

 

Table 2: Top 10 Highest Rental Yield Locations In The UK

City Average gross rental yield
1. Sunderland 8.50%
2. Dundee 8.07%
3. Burnley 7.96%
4. Glasgow 7.90%
5. Middlesbrough 7.85%
6. Aberdeen 7.45%
7. Liverpool 7.43%
8. Blackburn 7.41%
9. Hull 7.30%
10. Grimsby 7.07%

Source: Zoopla Rental Index, December 2023

 

Among the top 10 rental yield areas, Zoopla has highlighted Liverpool as an attractive opportunity for property investors. This is due to the city’s relatively low average house prices, excellent employment prospects, and large student populations.

Property Investment Location: Liverpool

Rental Yields Of Liverpool Property Investment

Investing in Liverpool’s property market offers an appealing opportunity for investors globally. The city boasts some of the UK’s highest rental yields, averaging a gross rental yield of 7.43% and reaching as high as 10% net yield in certain central areas. This makes it an attractive option for buy-to-let investors aiming for consistent rental income.

 

Student Accommodation Investment Liverpool

Liverpool’s buy-to-let property market presents an attractive prospect for investors looking for stable returns and long-term growth. The city’s robust rental market is driven by a strong demand for quality rental properties, particularly from students and young professionals. Click here to discover our new and exclusive student property investment in Liverpool centre!

 

Affordable Entry Price for Liverpool Investment Properties

Moreover, the affordability of property prices further enhances Liverpool’s appeal for buy-to-let investments. According to January 2024 data from the Land Registry, Liverpool’s average property price for all property types was £176,371, with and average property price for flats and maisonettes at £134,204. With notably lower property prices compared to other UK cities, investors can enter the market at relatively low costs, enabling them to build diversified portfolios more quickly and achieve higher returns.

 

Ongoing Regeneration Projects In Liverpool

Furthermore, ongoing regeneration projects in Liverpool, such as waterfront developments and the revitalisation of areas like the Baltic Triangle, indicate significant growth potential. These initiatives not only enhance the city’s infrastructure and amenities but also contribute to the appreciation of property values, providing investors with the opportunity to capitalise on the rising prices of buy-to-let properties.

 

For further insight, our articles on Liverpool property investment delve deeper into the advantages mentioned above:

 

Property Investment Liverpool: Everything You Need To Know

Liverpool Property Investment: A Prime Choice for High Returns And Growth Potential

5 Reasons Why You Should Invest In Liverpool

Liverpool: The Smart Choice for Student Property Investment

Best Areas To Invest In Liverpool | New Hotspots And Regeneration Projects.

 

Discover our select investment projects located in Liverpool

 

Property Investment Location: Manchester

Annual Rental Price Increase Of Manchester Investment Properties

Manchester City Centre has emerged as one of the top investment destinations in the UK. Investing in Manchester’s robust property market offers investors highly attractive rental yields, along with an annual positive capital growth rate, despite a negative average for the UK. With an average annual increase in rental prices of 9.6%, Manchester stands out as the ideal location for those seeking substantial returns from a thriving rental market.

Student Retention Rates In Manchester

As the capital of the North, Manchester boasts high-quality educational institutions, a diverse range of businesses, and excellent transportation links. A recent survey revealed that nearly half of university graduates in Manchester choose to remain in the city for employment opportunities. The city’s vibrant nightlife and growing reputation as a hub for technological innovation attracts young professionals seeking a fascinating lifestyle.

Manchester’s Innovative Projects

Moreover, Manchester is rapidly evolving into a major international gateway, boasting well-connected road, rail, and air links. Manchester Airport has commenced the next major phase of its £1.3 billion transformation programme, which includes the construction of a new pier connecting to Terminal 2. Upon completion in 2025, approximately 80% of all passengers will utilise the expanded Terminal 2.

 

The UK Government has initiated various projects aimed at revitalising Manchester as the economic powerhouse of the North. Manchester now competes with London and the South across various sectors, including media, financial services, engineering, and technology industries, all experiencing exponential growth due to government-led regeneration efforts.

Manchester’s Economic Growth

Manchester has consistently been one of the top-performing cities in recent years, with its growth potential and rental market poised for further expansion. 

 

According to Manchester’s city council , the population living in the city centre is expected to increase to 100,000 by 2026, while total city centre employment is projected to reach 315,000 by 2040.

 

The establishment of FTSE 100 companies in the innovative North Manchester business and technology district will also sustain the local economy’s growth for years to come. 

 

Discover our select investment projects located in Manchester

 

Property Investment Location: Birmingham

Annual Rental Price Increase Of Birmingham Investment Properties

Apart from investments in the North, Birmingham stands out as a promising option among the top places for investment in the UK.

 

Situated in the West Midlands, Birmingham is recognised as the UK’s second-largest city. Similar to Manchester, investing in Birmingham’s property market translates into attractive rental yields. 

 

According to Zoopla’s latest rental market report published in March 2024, the city  witnessed one of the most significant rental growth rates at 8.6%. 

 

This trend is expected to persist due to substantial regeneration initiatives such as the Big City Plan, as well as the city’s strategic location linking the south and the north of the country. 

 

Positive Capital Growth Rate For Properties In Birmingham

While property prices in many other urban areas experienced declines, Birmingham’s properties still maintain an average annual positive capital growth rate. 

 

However, it is worth noting that Birmingham’s property prices are higher compared to many cities in the north, so investors seeking more affordable properties may find better options in Liverpool and Manchester.

 

Discover our select investment projects located in Birmingham

 

Best Locations For Student Accommodation Investment

At Advantage Investment, we aim to shed light on prime buy-to-let locations, with a particular focus on optimal areas for investing in student accommodation. When considering the best place to invest in student accommodation, Liverpool stands out due to its advantageous investment conditions, including higher rental yields compared to London and attractive property prices.

 

Our select student property investments in Liverpool city centre offer benefits such as no stamp duty, assured rental income for up to 10 years, and fully managed properties. These features make them an ideal choice for investors seeking stable returns and hassle-free investments.

 

Explore our extensive articles supported by figures on student accommodation investment: 

 

Student Accommodation Investments: Everything You Need To Know
UK Purpose Built Student Accommodation (PBSA) Market Overview
6 Reasons Why Student Property Investments are Increasing in Popularity
Student Property Investment Locations: Northern Cities The Ideal Choice
Liverpool: The Smart Choice for Student Property Investment

You May Also Consider Buying Off-Plan Overseas

For seasoned property investors looking to diversify their portfolios beyond the UK or British individuals eyeing overseas retirement or remote work havens, exploring off-plan investments in Dubai and Marbella holds significant appeal. 

 

Both locations boast diverse investment opportunities, from beachfront villas to urban apartments, catering to various preferences and investment strategies. 

Dubai Investment Properties

Dubai’s vibrant economy, tax-friendly environment, potential for high rental yields and capital growth on properties make it an enticing option. 

 

Discover our select investment projects located in Dubai .

 

Marbella Real Estates

Meanwhile, Marbella’s  favourable climate and upscale lifestyle offer a serene yet luxurious destination for retirement or remote work. 

 

Discover our luxury Spanish real estate projects located in Marbella

More Updates

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