Finance

Best Places to Invest in UK Property in 2022

Property is probably one of the most popular investment opportunities in the UK right now, with many would-be investors attempting to take advantage of the recent market boom to secure rather lucrative ventures.

However, for many, it may be difficult to get started.

In particular, finding the right spot can be a challenge.

Best Places to Invest in UK Property

Looking for the best place to buy property in the UK?

Here are four of the top contenders!

Liverpool

One of the usual suspects regarding property investment, Liverpool is definitely one to watch you’re drafting your list of potential investment opportunities. 

UK regeneration efforts have helped the city transform into an economic powerhouse – and an extremely profitable one at that. 

With developments like Liverpool ONE and the Baltic Triangle among just a few highlights, Liverpool remains a top spot to invest in 2022.

Over the past few years, the city has seen a continuous uphill trajectory, maintaining its top reputation in 2018, 2019, 2020 and 2021.

And there is seemingly no signs of this changing anytime soon. With both young professionals and students flocking to the city for the business opportunities on offer, it’s probably one of the perfect cities to invest in in the coming years. 

Manchester

With its house prices continually being some of the best on offer in the UK, especially in terms of growth, Manchester is a place with a reputation for reigning supreme in the buy-to-let investment world.

And all signs are certainly pointing towards this continuing to be the case. 

According to forecasts by Savills last year, property prices in the Northwest region are predicted to increase by 18.8% across the next five years. House prices are set to rise 13.1% by 2026 – with the majority of this growth being fastest in the North of England compared to the rest of the country. 

Looking backwards in time – most notably to the city’s considerable rise in capital appreciation returns between 2017 and 2018 – it would also not be a shock if Manchester will again be the one leading the way for price growth in the North.

Over 20 years, Manchester has had the highest growth rate out of every UK city on this list, rising by 326.09% since May 2001. 

Plus, when you factor in the massive average yields of 7.10%, it’s a challenging prospect to argue against. 

Sheffield

Again, displaying its dedication to regeneration efforts, around £500mill has been invested into developing Sheffield’s retail district, as well general improvements to amenities – such as parks- in the area.

As a result of this, central areas in the city have seen rental yields of around 7% – a very nice position to be in, especially in a year of multiple lockdowns. 

With this in mind, Sheffield appears to be a top contender in the property market, with data from Zoopla depicting that property prices have also increased by about 7% in the last 12 months alone.

Additionally, with a strong business foundation of leading business and technology industries, including Rolls Royce and McLaren, it’s hard to see any faults in terms of investment opportunities

Birmingham

The UK’s ‘second city is another with an extensive history of topping the investment market. 

With more projects continuing to be added to its ‘Big City Plan’ – another regeneration effort – investment demand has never been higher. 

Birmingham is also leading the way in terms of rental demand. Between the end of 2020 and the beginning of 2021, reports found a 25.2% rise in demand. Rightmove also saw a 51% increase in rental enquiries city. 

Like Manchester, Birmingham also has a thriving student population propelling its rental demand with about 40% of the population under 25 and 64% of working-age – 2% higher than the national average. 

Data also shows that the average income to property price ratio is a much more rewarding figure in Birmingham compared to anywhere else in the country. This has allowed the city to attract – and retain – skilled workers that can both earn income and then spend it in a rapidly growing city.

The average rent has also risen by 30% over the last 10 years and is expected to further increase by 12% over the next 5, boosted again by tenant demand from young professionals and a rising general population.

So, where is the best place in the UK to invest?

No matter where you choose, it’s vital that you take the time to research your options as thoroughly as possible. None of these cities is the best – in fact, there isn’t even a definitive answer. As with anything in life, property investment differs from person to person, so what works for someone else won’t always be the best choice for you. So, consider your options, take your time and try not to sweat too much about it!

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