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Thursday, April 18, 2024

Buy to let Projected: The future of the market in the UK

 

Political instability in the country has raised major concerns among many, and some say that the property market is in a rut due to slowing sales, as many try to ‘wait out the storm’ of Brexit. Here is some closer information on some of the different prospering (and stagnating) areas of the country at the moment, giving an inclination as to what to expect in the coming years.

 

The struggling south

The housing market in southern cities, and in London in particular, is a stagnating one currently. People are anxious to commit to purchasing houses, and investors worry that they will be stuck in a declining area should they fork out for a long term investment.

It’s not all doom and gloom, as prices in the capital are certainly set to rise within the coming years, meaning the market will ameliorate for long term investors, although with much better percentages and averages in other areas of the country, buyers have to ask themselves the question of whether or not it is worth it. Unless you’ve got your heart set on a property that you want to move into personally, or have found a particularly unique offering, you will likely be able to find much better prospects and returns in other areas.

House prices in northern cities, much like the costs and resulting standards of living for tenants, are also typically much lower and affordable. This makes them a lower risk investment, and makes them also more accessible for first time buyers looking to get into the market. While the average house price in London currently sits at £626,102 according to Zoopla, house prices in Liverpool, for example, are at £168,963.

 

A growing student presence

The student property market stays a consistent and lucrative one, in spite of murky waters.

Many cities across the UK have strong (and growing) student populations, and a movement towards luxury accommodation, with features and amenities as well as being close to chosen universities and educational facilities. This means that there is plenty of opportunity for investors to get involved. Both a manageable investment for the first-time buyer and a great addition to a varied portfolio for the experienced, this property type is even proving popular with international investors. It also has many benefits, such as a smaller possibility of void periods.

 

Northern Influence

In the current climate of the property market (and for the foreseeable future), northern cities are dominant, and at the top of many lists for crucial factors such as rental yields and capital growth potential. Here are some of the top cities in the country:

Liverpool

A northern stronghold and cultural powerhouse, Liverpool is one of the most exciting spaces to invest in currently. If the cities’ student population and knowledge quarter weren’t enough to pique the interest of buyers, then the growing digital hub of entrepreneurs and startups in-and-around the Baltic Triangle area should prove an exciting prospect.

RW Invest are one of the many companies offering investors the chance at early access to this area, with modern luxury housing developments to answer the demand from young people wanting to move nearby for job opportunity.

Manchester

Manchester is another influential northern city that experienced a developmental boom a few years ago – similar to the one that Liverpool is experiencing now. The city again is high up on the list for rental yield averages and capital growth, and has the biggest student population in Europe, making it a good spot for the above-mentioned student accommodation.

Nottingham

While Liverpool has the highest number of postcodes within a high rental yield average, Nottingham tops the list for providing the best average yields currently, at 11.99% in the NG1 postcode. The area itself is again an exciting one, with one of the largest student populations in the country, and the transport links make it a desirable area.