After a rather dramatic two years, to say the least, it would be completely understandable if property investment is the last thing you’re thinking of.
However, while you could assume that the UK property market, like many other sectors of the economy, would also fall victim to these challenging times, it has, in fact, rather seen a much more optimistic outcome.
In fact, for those seeking a lucrative new opportunity, property investment might just be the thing you’re looking for.
With this in mind, where exactly are the best places to invest in property in the UK?
Here’s a handy guide outlining where to buy property in the UK in 2022.
With its house prices continually being some of the best on offer in the UK, especially in terms of growth, Manchester is a place with a reputation for reigning supreme in the buy-to-let investment world.
And all signs are certainly pointing towards this continuing to be the case.
According to forecasts by Savills last year, property prices in the Northwest region are predicted to increase by 18.8% across the next five years. House prices are set to rise 13.1% by 2026 – with the majority of this growth being fastest in the North of England and slowest in London.
The city has proven to be a solid competitor with the capital city in the past and sometimes has even been able to overshadow it entirely.
For example, the city has developed a reputation as one of the top destinations for young professionals – on account of an impressive global business and employment growth of 84% between 2002 and 2015 – only narrowly losing out to those in the Midlands.
Looking backwards in time – most notably to the city’s considerable rise in capital appreciation returns between 2017 and 2018 – it would also not be a shock if Manchester will again be the one leading the way for price growth in the North.
Over 20 years, Manchester has had the highest growth rate out of every UK city on this list, rising by 326.09% since May 2001.
Plus, when you factor in the massive average yields of 7.10%, it’s a difficult prospect to argue against.
Another one of the usual suspects when it comes to property investment, with its comparatively low housing prices and massive rental demand, Liverpool is definitely one to watch you’re drafting your list of potential investment opportunities.
UK regeneration efforts have helped the city transform into an economic powerhouse – and an extremely profitable one at that.
With developments like Liverpool ONE and the Baltic Triangle among just a few highlights, Liverpool remains a top spot to invest in 2022.
Over the past few years, the city has seen a continuous uphill trajectory, maintaining its top reputation in 2018, 2019, 2020 and 2021.
And there is seemingly no signs of this changing anytime soon. With both young professionals and students flocking to the city for the business opportunities on offer, it’s probably one of the perfect cities to invest in in the coming years.
Perhaps not the most obvious choice but investing in Nottingham properties might be one of the most advantageous options to consider this year.
Thanks to a combination of low property prices and relatively solid rental figures, Nottingham can generate significant yields upwards of 6.13%.
Following an estimated 9% rise in property prices in 2021, the city is expected to see a further 4% increase in 2022. So, if you want to invest anywhere, now would be a good time to do so.
The city’s emerging economic backbone is equally impressive.
There are many employment opportunities on offer, with Nottingham acting as host to over 50 Business headquarters, including Rolls Royce and Midlands Aerospace.
Also worth consideration is the Queens Medical Centre, which is one of the largest teaching hospitals in the UK and employs over 6,000 medical staff.
On top of all of this, the city also boasts a thriving student population, making up around 13% of the total population.
Also, significantly for investors, the city is overflowing with transport links.
It is credited as being the ‘central cog’ in the UK logistics network, with 77% of the overall population within a one-hour drive – due to the proximity of the M1 and A1.
Furthermore, the Nottingham Express Transit makes it incredibly easy to get to and from work, so investors should target properties close to tram services.
The UK’s ‘second city is another with an extensive history of topping the investment market.
With more projects continuing to be added to its ‘Big City Plan’ – another regeneration effort – investment demand has never been higher.
Birmingham is also leading the way in terms of rental demand. Between the end of 2020 and the beginning of 2021, reports found a 25.2% rise in demand. Rightmove also saw a 51% increase in rental enquiries city.
Like Manchester, Birmingham also has a thriving student population propelling its rental demand with about 40% of the population under 25 and 64% of working-age – 2% higher than the national average.
Data also shows that the average income to property price ratio is a much more rewarding figure in Birmingham compared to anywhere else in the country. This has allowed the city to attract – and retain – skilled workers that can both earn income and then spend it in a rapidly growing city.
The average rent has also risen by 30% over the last 10 years and is expected to further increase by 12% over the next 5, boosted again by tenant demand from young professionals and a rising general population.
With property figures continuing to rise and there seemingly being not a whisper of stagnation on the horizon, this year could be the perfect opportunity to broaden your ventures and invest in UK property.