Best Areas to Invest in Property 2023

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.

Liverpool

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.

Sheffield

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.