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.
