It has been claimed that London’s housing market has become even less affordable with the number of luxury apartments priced at over £1m increasing and the number of Londoners leaving the capital hitting a 10-year high. As a result, London’s commuter towns and the northern regional cities are rising in popularity.
We have rounded up the best buy-to-let hotspots for 2018 considering entry prices, capital appreciation and rental yields:
There is no surprise that Manchester has been tipped for another strong year in the property sector. It has been described as the “shining beacon” of Northern England with many young people looking to live, work and play in the vibrant city, which has in turn caused the population to balloon in recent years. Last year it was claimed that the population is growing almost 15 times faster than homes being built.
JLL predicts that the Manchester economy will expand by 2.7% a year, above regional and national averages. Employment growth is also expected to be stronger averaging around 1.3% a year in the next three years. Manchester is an obvious choice for property investment and is expected to continue to grow steadily in the future.
Sheffield is moving in the same direction as Manchester and is predicted to see a similar level of success in the coming years. House prices in the city have increased 27.1% in the last five years according to Zoopla and they will continue to grow as demand for housing in the city increases.
With promising job opportunities and a lifestyle which is both exciting and affordable, many young professionals are desperately looking to move to the city. The retention rates from the city’s universities are also impressive with more than 25% of annual graduates choosing to remain in Sheffield, which is testament to the city’s offerings.
Sheffield city council have huge development plans for the city including a brand new Retail Quarter. For further information on Sheffield as a buy-to-let hotspot, please read our Sheffield guide.
Manchester’s neighbouring city of Salford has also made the list of places to watch in 2018. Property prices in Salford have increased more than 30% over the last five years, indicating that the property market is going from strength to strength.
With MediaCityUK, the purpose-built hub accommodating ITV and BBC in the process of expanding its site by 200%, employment opportunities will continue to increase and a move to Salford will appeal to many more young people looking to start their promising careers. Salford gained recognition for its ability to attract innovative start-ups last year and became the UK’s top city for start-up growth, outranking the likes of London and Manchester.
Although the spotlight has been shifted towards the key northern cities, investors are still able to achieve excellent returns elsewhere in the UK. As one of the most popular London commuter towns, Chatham has benefited from a huge regeneration programme which has seen £1bn of investment injected into the local area.
The appeal of London seems unlikely to die down any time soon which means young people will have to look for homes further out in the commuter towns where there are direct public transport routes into London. Less than 35 miles away from Central London, Chatham is proving to be a popular choice for people being priced out of London. Equally, investors are turning their attention to this location with house prices having increased 47% in the past five years.
If you’re looking to invest in any of these areas contact our team today for free expert advice!