6 Property Hotspots In The UK


6 Property Hotspots In The UK

The drop in the value of the British pound post-Brexit has increased the appeal of properties in many parts of the UK. Here's where investors will find the best deals.

Published on 30 September 2016



One of the world’s fashion, cultural, dining and financial capitals, London has long been a property hotspot. Since the Brexit referendum, however, the city has become an even bigger draw – not just for immigrants but investors too. In an article published in June 2016 in the Independent, real estate agents were flooded with enquiries from buyers in China, Singapore, the Middle East, Europe, the US, and even Australia, who were keen to invest in property in the capital. According to agents, the decrease in the sterling in the wake of the referendum caused the average price of a home in London to fall to €579,200 (£493,107); just seven months earlier, in November 2015, this figure was at a record high of €630,100 (£536,442). When it comes to capital gains, property investments in inner London are expected to generate an annualised return of 7.9 per cent.



As part of the Northern Powerhouse – a group of core cities whose economic growth the UK government is working to boost – Manchester will continue to benefit from the on-going investment in infrastructure. As a result, the property market is expected to remain strong in years to come. In a June 2016 article on the Manchester Evening News, Frazer Fearnhead, CEO of The House Crowd, the UK’s first property crowd-funding platform was quoted as saying that, while the uncertainty surrounding Brexit may cause a brief slowdown in rising house prices and foreign investment, bricks and mortar are likely to remain a sound investment. “Predicted house price growth in Manchester for 2016-20 stands at 24.6 per cent and rental income for the period is expected to rise by 22.8 per cent,” he stated.



This major city in the West Midlands region is an attractive residential property investment location. The most populous British city outside London, it is home to several top schools and universities, and has been undergoing a gradual regeneration in the last few years (the HS2 high-speed rail line to London is scheduled to open in 2026). According to estate agent Clarks Residential, Birmingham is popular with renters and young working professionals, with the top five areas being Aston, Ladywood, Moseley, Solihull and Sutton Coldfield. A 2016 report, entitled Emerging Trends in Real Estate Europe 2016: Beyond the Capital, published jointly by the Urban Land Institute (ULI) and PwC, named Birmingham the fifth leading European city for investment prospects this year.



Home to the UK’s top-ranked university, Cambridge has the best prospects for economic growth of any major town or city outside London in 2016, according to the latest UK Vitality Index, which identifies the main areas outside the capital that have robust and successful local economies. If you are planning to invest in property in this historic university town, you can expect high capital gains. Property 118, an online property forum for landlords in the UK, says that Cambridge property investments are generating an annualised return of 5.99 per cent.



Another historic university town, Oxford boasts beautiful architecture and a number of cultural attractions. With a high number of students and contractors from the technology industry living here, rented accommodation is in high demand. Houses in Oxford are also expensive to buy, pushing many into rental properties. According to an April 2015 article by Sarah Coles in The Huffington Post UK, about 26 per cent of housing stock is private rented accommodation, and demand is still growing. This is good news for investors seeking buy-to-rent properties. While the average property price is £254,514, rents are also high, averaging about £1,489 a month – which means you can expect yields of just over seven per cent.



This port city on England’s south coast has long had a strong rental sector, thanks to its large university student population. Property in Southampton is also expensive to buy, with the average home costing about £143,011 – this is why many young professionals and families prefer to rent until they are able to afford their own home. With rent in this city averaging £1,040 a month, investors who are looking for buy-to-rent properties can expect a yield of over 8.7 per cent, says Sarah Coles in her article in The Huffington Post.

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