Here’s where Property Investors and Landlords should consider their next Property purchases over the next year, taking into account recent price growth, regeneration projects, and increased demand.
RENTAL YIELD: 6.56% HOUSE PRICES: £233,148 (11% up)
Birmingham’s population is currently rising by 10,000 people a year and has the youngest city population in Europe. The city will become more closely connected with London too when HS2 is launched.
Businesses like Goldman Sachs, Deutsche Bank, and HSBC have also launched headquarters in the City.
All this means Birmingham’s housing and rental demand should continue to grow.
RENTAL YIELD: 6.53% HOUSE PRICES: £247,726 (11% up)
Like Birmingham, Manchester has a young population, with a quarter of those living in the City between 0-20 years old. Manchester also has a series of attractive ongoing regeneration projects, including the £1.5 billion project in Spinningfields to give Manchester a new “central business district”.
According to Zoopla, rental demand doubled in Manchester from July to September 2021.
RENTAL YIELD: 3.7% HOUSE PRICES: £394,336 (8% up)
Slough is going to be one of the big beneficiaries of Crossrail, with the Berkshire town set to have a train to central London arrive every 5 minutes during peak times.
Slough itself already has a strong economy, with O2 and Mars UK holding their headquarters in the area. The Slough trading estate is also the biggest business park in all of Europe.
With a better connection to London, housing demand could rise significantly.
RENTAL YIELD: 5.35% HOUSE PRICES: £313,242 (6% up)
Edinburgh’s population has grown by 50,000 people over the last 10 years, and for those looking to rent out BTL properties, Edinburgh is an attractive spot. As of 2018, there were a total of 26,000 undergraduate students at the University of Edinburgh. That, combined with a moderate growth of 6% in house prices over the last year, makes Edinburgh a great spot for Property Investors.
RENTAL YIELD: 5.8% HOUSE PRICES: £523,979 (2% up)
Like Edinburgh, Cambridge is a university city with plenty of opportunity for BTL. According to figures from Maxine Lester, tenants registering for rental homes are increasing 15% year on year (as of October 2021).
The catch is that there are 30% fewer properties coming to the market, causing a disconnect between supply and demand. That could bode well for future projections on an investment.