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    2024 Property Market

    After a rocky 2023 property market, 2024 looks more promising for investors. Even as the market adjusts to mortgage rates and house price inflation, buyer power will rebalance and be more open to price negotiations.

    For activity to ultimately return, either house prices must continue to fall alongside rising incomes or mortgage rates should reduce. Luckily, for those who have been holding off buying, 2024 property forecasts are showing either solution to be likely.

    Have you missed our 2024 Property Market Forecast? Catch up here!

    Is Investing in London Property a Good Idea?

    Many look to London for property investment due to its population, tourism, and business growth. 30% of the country’s rental supply may come from London, but the capital offers rental yields of 4.92%. This is the lowest in the country. Most of the best rental yields in the UK are found far North of London.

    Even though London led the way with house price reductions this year, ever-widening the North-South Divide, it remained the most expensive part of the country to live. For example, the average London tenant spends 40.2% of their income on rent, compared to the UK average of 28.4%. However, despite this, renting remains cheaper than monthly mortgage repayments compared to the North.

    Buy-to-let properties in London are home to low returns and some of the highest property prices in the country. These alone make property investment in London highly unprofitable. Even demand is reflecting this trend. Rental demand is currently 20% lower YoY. It is forecast to grow by 2% over the next year, but this is the lowest increase since 2021. This greatly reveals what tenants are looking for. Many are following businesses moving North for more affordability and the region’s ever-growing potential.

    So, if not London, what are the best areas to invest in property in 2024?

    london

    Best Areas to Invest in Property 2024

    Leeds

    Leeds is not just one of the best areas in Yorkshire for property investment in 2024 but in the UK. It is the unofficial capital of Yorkshire and a key player in the region’s economy. Its population of 800,000 adds to this – a growth rate 7 times the rate of London in the last 20 years! 65,000 of this population are students, in constant need of a rental property. With 73% of Leeds currently renting and average rental yields reaching 6.5%, there is endless investment potential.

    The likes of the Leeds South Bank project and the Leeds City Square and Transport regeneration will continue to raise the city’s economic success and desirability for both businesses and young professionals. What is more, 2024 will continue the success of LEEDS 2023 Year of Culture and influence even greater capital growth potential over the year.

    Liverpool

    Liverpool has the perfect complimentary combination of affordable property prices and high rental yields. Prices in Liverpool average £191,335 alongside gross yields of 7.5%. The city is certainly one of the best areas in the UK to invest in property, especially in 2024. Following the success of Eurovision in May 2023, Liverpool is on an upward trajectory – of a £250 million increase to its economy over the next 3 years, no less. Even rental growth is expected to thrive, increasing by 15.9% over the next 4 years.

    As well as a thriving student destination, filled with 70,000 a year, Liverpool is also a global hotspot for both tourism and business start-ups. Thanks to the ongoing regeneration of Liverpool Waterfront, its business sector is making the city an even bigger magnet for young professionals. From affordability to capital growth, there are many reasons to invest in Liverpool.

    Manchester

    Manchester is named the ‘Canary Wharf of the North’ for a reason. Due to the growth of MediaCity, Manchester has long been London’s main rival – and its house prices have been growing in reflection of it. Despite this, with average prices sitting at £251,038 and average monthly rent reaching £1,515, the city remains one of the top investment hotspots. Even the city’s outskirts offer fantastic ROI, due to Manchester’s ongoing regeneration, and are city favourites for commuting.

    The average rental yield for Manchester is currently 7.2%. This means a great return on investment potential, which will only continue to increase. The city has an impressive forecast for rent growth over the next five years, making it one of the best areas to invest in buy-to-let property in 2024.

    Birmingham

    Birmingham sees high tenant demand from young professionals who leave London in search of better affordability. Birmingham is the UK’s largest hub of professionals, second to London, with approximately 100,000 workers. The population of the Heart of the Midlands is even forecast to reach 1.24 million people by 2030. What is more, 40% of the city’s population is under 25. All of these relocating young professionals are in constant demand for rental properties.

    Its rental market alone makes Birmingham one of the best areas to invest in property in 2024, before even looking at ‘Our Future City Plan’, the budding new tech hub, and the entire future of Birmingham’s house prices.

    Up and Coming Property Areas in the UK 2024

    Bradford

    Not only has Bradford been named the best city for first-time buyers, but it has also been recognised as the ‘Best City in the UK for Investors’. This is simply down to its affordability, fantastic connectivity, and growing desirability. With regeneration in Bradford improving the public realm and investing more in its business sector, seen in the city centre One City Park, this city is certainly one of the best up-and-coming property areas for 2024.

    Net yields near 7%, low FTB house prices of £104,643, and young population make Bradford one of the best places in Yorkshire to invest. Its youthful population is due to its rewarding university, as well as its ideal commutable location for Leeds. With its combination of affordable prices and demand from young professionals, Bradford benefits from highly profitable returns.

    Hull

    With average rental yields reaching a gross of 7.30%, Hull is currently the highest-yielding area in Yorkshire. As regeneration in Hull continues to improve the public realm and resident pride, and its lead in the green revolution takes the UK by storm, Hull certainly makes for a great investment choice.

    The best places to live in Hull span across both the city centre and the suburbs in terms of affordability and desirability. Properties in Hull City Centre are £30k less than Hull’s overall house price average of £164,997. This creates fantastic opportunities rare in investment hotspots, where city centre property can be cheaper than commutable districts. Here, investors can greatly benefit from both assured shorthold tenancies and short-term lets.

    Leicestershire

    Leicester is a fantastic investment choice for the Midlands. Average property prices in Leicester are £264,558, values which have more than doubled since 2013. Average rent reaches £1,235 PCM, making an average yield of 5.6%. In the heart of England, this area and Leicestershire as a whole benefit from major connectivity. Key train stations, airports, and motorways are within reach, connecting to the rest of the country and the globe, and offer great short-term let opportunities for those travelling across the country.

    Loughborough is a popular choice, only 30 minutes from Leicester. As a thriving spot for students and young professionals, following the town’s famed sports university, Loughborough sees endless rental demand.

    Intrigued by Property Investment?

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    Investing in property is a big step. Need more guidance on whether it is the most profitable way to invest your money? We can help with that.

    There is always something to learn about property investment. Both new and seasoned investors can always benefit from more knowledge, hints, and tips – and remembering the reasons why investing in property is the best way to accumulate money.

    Click here to download our 8 Reasons to Invest in Real Estate guide.

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