Victory Place
ManchesterYields: 6.65%
Prices from £204,905
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20
Sep
2024
How to Spot Investment Hotspots
Category: Investment Hotspot
Active Regeneration
One of the most important factors to look out for in an area is active regeneration, which is usually funded by the local council or the UK government. Usually, regeneration projects will transform areas and will improve the quality of life within the city. Keep an eye out for upcoming projects in an area, such as new schools, hospitals, or entertainment facilities. These developments will enhance property values over time by generating more job opportunities, stimulating the local economy, and increasing the overall appeal of the area.
Some of the projects that have seen huge success are Leeds South Bank and Manchester Media City. These schemes led to a significant boost in property prices and introduced a huge rise in jobs, homes, and businesses in the area. Furthermore, rental demand has continued to grow in the areas of regeneration, due to the rising factors and desirability.
Transport Links
Another important indicator of an investment hotspot is strong transport links. Many commuter cities have experienced large growth in recent years, driven by the rise in home working. Excellent connectivity, whether that is by train, bus, car, or plane, allows residents to travel easily, making these locations highly appealing. With tenants increasingly seeking commuter cities to benefit from lower rental costs, access to efficient transport is becoming a crucial factor in their decision-making.
Transport infrastructure also plays a key role in boosting tourism, which in turn strengthens the local economy. Increased visitor numbers often attract further investment, leading to the development of new amenities and services that enhance the appeal of the area. This heightened desirability will not only improve quality of life but also drive up property prices, creating lucrative opportunities for investors.
Available Amenities
An important factor to consider when purchasing a buy-to-let property is the amenities that are available in the area. The key amenities in an area will help determine the level of demand and development that the city receives. For example, in an area aiming to attract young professionals, shops, cafes and bars will be incredibly desirable. These types of amenities enhance the desirability of an area and provide higher retention rates.
Additionally, areas with well-developed local infrastructure significantly enhance the quality of life for residents, making them highly attractive for long-term living. Access to essential amenities such as gyms, supermarkets, healthcare facilities, and schools ensures that daily needs are conveniently met, encouraging long-term residency in the area. While central locations have traditionally offered a wider range of these conveniences, the growing trend toward the “15-minute city concept” means investors can look beyond city centres to discover prime investment opportunities.
Key Employers
Identifying key employers in a city is an excellent way to pinpoint areas with strong employment levels, which can greatly benefit landlords. When a city is home to major employers that hire hundreds or even thousands of professionals, property demand is sure to rise. This puts pressure on the supply-demand imbalance, as the number of available properties can’t keep up with the influx of potential tenants, driving up rental prices.
Moreover, these tenants are often highly desirable, seeking long-term, comfortable accommodations that suit their lifestyle. As professionals with steady income streams, they offer greater financial security, making missed payments unlikely. In contrast, areas with lower employment rates can struggle with tenant demand, and the renters they do attract may not provide the same level of stability. Therefore, investing in cities with key employers not only ensures higher tenant demand but also increases the likelihood of attracting reliable, long-term renters.
Population Growth
When it comes to supply and demand, regions with strong population growth offer some of the most compelling investment opportunities. As more people move into an area, competition for rental properties intensifies, driving up rental prices and boosting yields. This makes areas with steady population growth ideal for investors looking to maximise returns.
Tenants are often drawn to specific regions to pursue a career, educational prospects, or an enhanced quality of life. In recent years, many people have been leaving London for the Midlands, where job opportunities are plentiful and their income stretches further. This migration trend is creating new investment hotspots outside the capital, offering investors the chance to receive high demand, rising rental prices, and long-term capital growth potential. By targeting these hotspots, investors can be positioned to benefit from strong rental yields and increased property values.
Education Facilities
Education is a powerful driver of population growth in UK cities, making it a key factor for discovering hotspots for buy-to-let properties. Students relocating for their studies create a significant demand for housing, with many opting for residential properties rather than traditional student accommodation. More importantly, a large number of graduates choose to remain in the cities they attended university, often securing skilled employment even before completing their degrees. This results in a steady influx of young professionals seeking high-quality accommodation, making areas with top universities prime hotspots for property investment.
Cities like Manchester and Leeds, home to two major universities each with tens of thousands of students, offer exceptional opportunities for investors. These cities also enjoy high graduate retention rates, meaning students are more likely to settle in the area post-graduation. For investors, this is a huge advantage, as the yearly influx of students not only boosts the local population and economy but also sustains a thriving buy-to-let market.
How Can CityRise Make Your Investment Journey More Simple?
Starting your investment journey or choosing your next buy-to-let property can feel overwhelming. With so much to consider, such as rental yields, local amenities, tenant demand, and property viewings, the process can quickly become time-consuming and complex. At CityRise, we take the hassle out of property investment by doing the hard work for you. Our expert team keep a close eye on the property market, partner with trusted developers, and offer carefully curated investment opportunities in UK hotspots that are designed to meet investor needs.
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