5 of the best places to invest in the UK

April 28, 2022 8:59 am Published by

Today we’re sharing with you our top five best places to invest in the UK.

When you’re looking to invest in property, there is plenty to consider. The area you look to purchase is arguably the biggest consideration of them all.
It may seem obvious, but some of the key factors to bear in mind when considering the location include:

  1. travel links
  2. area regeneration
  3. career opportunities
  4. tenant demographics and demand
  5. buy-to-let opportunity
  6. property prices
  7. rental yields. 

So, where are the best places in the UK to invest?

Vibrant towns and cities across the country, such as Leeds and parts of Kent, are experiencing something of a property price boom right now. According to the ONS, the average UK house price increased by 10.2% annually to March 2021 with a further increase expected in this years figures. This is the highest annual growth rate seen in the UK since August 2007, demonstrating that now is a great time to make a BTL purchase.

We’ve compiled some of the best places to invest in the UK taking in to account all these key factors. Read on to find the best towns and cities to put your money.

The best places to invest in the UK

1. Birmingham

Birmingham is a great investment city for buy-to-let property right now. The city is undergoing an extensive redevelopment and regeneration programme in preparation for the 2022 Commonwealth Games. The Games will give a major profile boost to the city, increasing career opportunities and population size. As well as its fantastic existing transport networks, there is also work continuing on HS2 travel links.

With an expected population of 1.24 million by 2030, an average rental yield of 6.56% and, according to Rightmove, as much as 24% price growth predicted by 2025 it is a great UK city to invest in right now. New developments with unusual and enticing features are a great place to start considering an investment. One example is Lockside Wharf, with an estimated completion date of 2023.

2. Leeds

Leeds is a pivotal part of Yorkshire’s economy and is almost certainly one of the best places to invest in the UK. London aside, it has the country’s largest banking and finance sector. Consequently, this gives it huge appeal to young professionals. In addition, Leeds has a renowned university, providing student tenant potential.

With a population of 800,000, the private rented sector is now the second largest behind home ownership in the city and, according to Leeds City Council, has a larger market than that of the social housing sector. There is consistent and long-term demand for rental properties in Leeds and the city has an average rental yield of 5.76%, so investing your money here must be given serious consideration, especially due to the range of beautiful and vibrant locations

3. Kent

Known as the Garden of England, Kent is a good place to invest and provides an alternative to the struggling London market. With excellent transport links, including fast train services direct into the capital, as well as international rail links, connection to major motorways and an airport, there are some great towns and cities to explore in the county that provide investment opportunities. Aside from its close proximity to London, Kent has its own standalone reasons that make it a prime BTL investment prospect. Kent’s growing economy is supported by the North Kent Enterprise Zone, which develops modern industries such as medical technology.

Notable places in Kent worth considering include Canterbury. With a rental yield of 4.07%, it’s the county’s main student city. Canterbury has a total population of 55,000, attracting millions of tourists annually due to its impressive Cathedral and historic background. There is huge demand from a variety of potential tenants in Kent such as locals, London commuters and students. This varied rental market means that there is scope for those who make property investment within the area. With large proportions of Kent sitting within the London commuter belt, the county has one of the highest rental demands in the UK.

Canterbury best places to invest in the UK

4. Manchester

The city of Manchester has always been known as a great investment location. It continues to be a leader in price growth for the North of England. With an average rental yield of 6.5% and a vast assortment of potential tenants from students to young professionals, it is an exciting area of the country to be investing in. With its yearly influx of students, Salford is definitely worth considering. This is because it provides consistently strong rental yields as a part of Greater Manchester.

Property prices are expected to continue steadily rising in Manchester with JLL forecasting a further 6% increase in 2022, it is clear to see the city intends to continue being a market leader. The growth lies mainly with the city’s ever-growing economy and population. It has great existing transport links and is widely seen as a great alternative to London. A new rail project expected by 2022 will allow 40,000 more passengers to travel throughout key UK cities, including Manchester, significantly increasing tourism to the area.  Manchester is something of a stalwart for investors and that doesn’t seem to be changing anytime soon.

Manchester

5. Newcastle

In the North East of England, Newcastle is one of the most affordable locations in the UK. With Zoopla stating that, on average, property starts from £137,627.  It’s these low property prices in comparison to other areas of the country that make it hugely appealing to investors. However, that’s not to say that prices aren’t increasing. In the past five years alone, Newcastle has seen growth of up to 13.37%. The increase in rental demand from this popular city has boosted rental yields to as high as 5.23%. With a population of 300,00, the demand is there.

In recent years there has been huge development within Newcastle’s economy with the city becoming an emerging hub for the creative and digital sectors. It is also a major student city, with around 42,000 students. While its current transport links aren’t as strong as other key UK cities, such as Birmingham and Manchester, the planned HS2 rail link will hugely bolster their offering and bring it up to date with rival locations.

Newcastle best places to invest in the UK

Is property still a good investment in 2022?

With the current economic uncertainties, bricks and mortar are still considered one of the safest ways to invest money. For those considering an investment, any of these locations work. Personally we believe Leeds or Kent are a great place to start your search in though. This is because Leeds has one of the best rental yields in the UK. In addition to this, Leeds has vast amounts of opportunity and growth. Kent has high rental demands and links to London, which are likely to increase over the coming years. 

 

This guest post was written by Dwell Leeds. Dwell are a multi-award winning Estate & Letting Agent in Leeds who make moving simple by providing the highest levels of customer care in our industry. Combining the latest and best in modern marketing technology with traditional values, we are able to deliver a best-in-class service to our community.

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