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After a rollercoaster year for the UK property market in 2022, investors are welcoming 2023 as an opportunity to seize their next investment. Finance broker, Finbri, reported that over half of investors are ready to expand their portfolio in 2023. Opportunities are available in the UK, with price growth exceeding the rate of London in areas of regeneration in the North.
CityRise is always scouting for the best areas for landlords to achieve their investing goals, whether that be capital growth, return on investment or both. When looking for an area to invest in, several considerations need to be made: the quality of the properties, competition for tenants, the local economy, regional regeneration and more.
As ‘the UK’s Second City’ Birmingham offers far more to investors than first meets the eye. The central location and fantastic transport links make it an idealistic location for tenants who are looking to commute to the north or south of the country. The location means that there are lots of skilled professionals looking for quality accommodation in the city’s central areas. This has driven rental demand and prices to increase, as tenants have been looking to leave London in search of lower rental prices.
Property prices in Birmingham, are typically available at a reasonable cost compared to other UK major cities too. This combined with the city’s property price growth of 8.5% in the past year makes it an ideal location for capital growth. The Big City Plan will only further grow the local economy by attracting businesses and employees from around the country to Birmingham. The effects of this will ripple across the city and cause a property price boom within the next few years.
Liverpool has recently had a property price boom, with property prices rising at over 5 times the pace of London, according to Rightmove. Currently, average Liverpool property prices now sitting at £221,779. The city has planned further regeneration projects, which has caused it to become an investor hotspot. These projects aim to deliver economic increases by introducing new businesses and jobs to the area. While property prices have climbed over the past few years, it is not expected that they will slow down anytime soon. For investors, this means buying property in Liverpool right now is still a great opportunity.
With upgrades to the Knowledge Quarter complete, leading groups of scientists, medical professionals and more have entered the city. This is increasing rental prices further and therefore making Liverpool properties higher yielding. As regeneration on Liverpool Waterfront approaches completion, more new-build apartments will become available off-plan, which has plenty of benefits to investors.
The once-industrial city of Manchester is now often compared to New York City, because of the creative industries and high volume of residents compared to properties available. This has caused property prices to grow by 9.3% in the past year. Manchester is continually attracting more and more businesses and tenants.
Part of Manchester’s draw is the number of amenities available to residents, with Trafford Centre, and Arndale shopping centre. As well as a huge number of cafes, restaurants, and leisure activities around the city. The more tenants coming residing in Manchester have led to increased rental demand and rental prices. This has continually grown year on year and will continue to grow over the next decade, as it is an attractive alternative to London.
As one of Europe’s greenest cities, Sheffield has the initiative to grow as a sustainable tier 2 city in the UK. Property prices are currently valued at an average of £171,600 which is far lower than the prices found in the UK’s largest cities. This allows investors to buy a property with less liquid capital, as the mortgage value would be significantly lower. For seasoned investors who have more cash to invest, they could even consider cash-buying property or having a lower loan-to-value mortgage, which will increase their return on investment as they would not have the expense of interest rates.
Sheffield is currently undergoing the Heart of the City 2 regeneration scheme. This will see the city create up to 7,000 new jobs while building upon the fantastic infrastructure it has created. The main draw to investors will be the capital growth achievable in the city, with an 8.5% growth in property prices in the past year. For shorter-term benefits, Sheffield property has yielded up to 7%, increasing the rate at which you can get a return on your investment.
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