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The UK’s Next Top Property Investment Hotspots

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With covid and Brexit, it was projected that the property industry would take a downturn. However, the property investment market has been one industry that has remained active through the past 18 months. A boom has been reported across The UK for both residential and commercial properties. However, it has seen changes within location choice. When choosing a property to invest in location is the top priority to get right if you are wanting for a high yielding future-proofed investment. House prices within the UK have risen the fastest in over 7 years, with an increase of 10.9%.

For many years there has been a significant north, south divide when looking into prospect properties. With the north and midlands being the favoured areas. A recent survey from FJP Investment has found the UK’s top property investment hotspots for the coming year. Although this has largely unchanged there was a slight change towards new areas.

The independent survey was completed by more than 500 property investors who have one to two more properties within the UK. Upon asking introduction questions it found that 44% of investors asked, wanted to expand their portfolio in the coming year. Within this, the location mentioned 40% of the time was London.

Following London for where property investors are considering their next purchase:

  • West Midlands 32%
  • East of England 26 %
  • South West 19 %
  • East Midlands 17 %
  • Yorkshire and Humberside 16 %
  • Scotland 15 %
  • South East 15 %
  • North West 13 %
  • North East 9 %
  • Wales 5 %
  • Northern Ireland 5 %

Lastly, the survey also found 44% of UK property investors are now considering more rural areas following the pandemic. Jamie Johnson, CEO of FJP Investment, commented: “London has retained its crown as an investment hotspot, despite speculation throughout the pandemic that the city may have lost its appeal as a place to live, work and invest. Yet our research also shows that regions such as the West Midlands and East of England rank high among investors’ wish lists, and we should expect these areas, along with the likes of the North East and North West, to attract a high level of property investment in the coming years.”

However, the best property investment areas all depend on your purpose and goals. Different statistics and data are better for different goals. If you are looking to buy and then resell you would ideally look for locations with capital growth. On the other hand, if your goal is a more build to let investment then perhaps consider areas that are better for rental yield.

Research conducted by Select Property used data such as rental dwellings growth, employment rates, number of start-ups, search volume around each of the locations, and property value. It drilled down into more specific city and town results for which is the best for property investment, concluding that Southampton ranked first place. Other top locations were Manchester and Liverpool all showing steadily growing employment and robust businesses. Lastly, Birmingham with the preparations for the Commonwealth Games 2022 well underway. It is predicted that Birmingham will be the fastest-growing region, with prices rising by 24% by 2025.

Adam Price, chief executive officer of Select Property Group stated “As the UK economy bounces back after the pandemic, investing in areas that have scope to grow in terms of population, employment and GVA will be key for securing the best ROI. Cities with excellent commuter links outside of London, or those with growing digital industries like Manchester will always be attractive to renters, meaning property investors can still find excellent value and opportunities in the right areas.”

How to finance your property development?

If you are looking to grow your development business or looking to renovate your next build-to-let project, you will need property development finance. This can cover a variety of options, loans, and mortgages for a vast array of eligible people.

Here at BLG we are experts in our field and have funded various buildings across the UK. We offer various loans and agreements. Providing access to our dedicated teams they talk you through your options for both commercial and residential property developers.

We pride ourselves on making fast decisions with flexible terms to allow you to move quickly, contact us today.

WHAT OUR CUSTOMERS SAY ABOUT US

"A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

“We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

“As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

“I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

"From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

“I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

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