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1. Single Lets
HMO properties (Homes of Multiple Occupants) once saw high demand for student accommodation. Now, traditional buy-to-lets – single 1-bedroom properties in particular – see higher demand from tenants and investors. This is due to students choosing purpose-built student accommodation, looking for higher-quality, modern designs.
Many young professionals and recent graduates search for 1-bed rentals. Because cities North of London are improving and growing their business sectors and transport connections, such people relocate to these places for work or for a more affordable and commutable location to London.
2. Furnished Holiday Lets
Short-term rentals, seen in the likes of Airbnb, are growing in popularity and demand from both buyers and holiday-goers. The preference for short-term lets over hotels surged with ‘staycations’ following the pandemic, with people wanting the flexibility of a home away from home. Even with more upkeep and management costs, short-term lets have recently outperformed the typical long-term buy-to-let income.
While the holiday let industry is increasing in demand, only 1.5% of landlords are holiday let owners, so competition is extremely low. Short-term rentals allow a more flexible and straightforward investment for landlords. 512 million nights were registered in 2022, which is a massive 7% increase from 2019’s figures and reflects the short-let resurgence from the ‘staycation’ trend. Having more attractive rental prices than hotels, short-term lets prove to be one of the best property investments currently in the UK.
3. Off-Plan Properties
Off-plan properties offer instant equity upon their completion. Due to these developments often selling for 10-15% below market value during construction, this kind of property investment can offer the best rental yields in the UK.
Demand is high for their lower utility bills, up-to-date features, and high specification. Less maintenance is needed, and a new-build warranty is in place. Because of this demand, rental prices are high, and off-plan opportunities are on every investor’s radar. The more desirable the location, too, the greater the returns.
4. BMV Properties
Below-market property investment in the UK is on the rise due to increasing interest rates. Securing a property for less than its worth means greater returns in the long run. Finding them, however, can be a challenge. Competition is high at auctions, where many other buyers gather, and property sourcing alone rather than using an agency can be risky.
Agencies like CityRise keep a careful eye on and specialise in the housing and resale market, with access to hundreds of trusted, motivated sellers. When it comes to sourcing below-market opportunities, agencies can find the best properties on and off the market to guarantee the best possible returns – without the buyer doing a single thing.
The Best Places for Property Investment in UK
The North offers some of the best property investments this year in the UK. Investors look North of London for lower property prices and higher rental yields. Birmingham, Liverpool, Leeds, Manchester, Sheffield, and Hull are some of the best BTL locations. With the average rental yield in the UK being 3.74%, these cities see almost double. What is more, most of the best returns and demand are seen in residential areas rather than city centre living. Commuting from the towns of Manchester, Leeds, and Liverpool to their city centres is on the rise, following the desire for quieter, more open spaces that came with the pandemic.
Schedule a free call with our Investment Consultants to discuss the best opportunity catered to you.
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