Housing hotspots in 2019 – where should you invest?

For property investors it can be difficult to know where it is best to invest within the UK. But with Brexit uncertainty increasingly taking its toll on the property market, according to the latest Royal Institution of Chartered Surveryors (RICS) research, it is more important than ever to identify the best places to invest that can return good a yield.

Buy-to-let property investment agency, Surrenden Invest, have taken a look into the property market, with help from the Office of National Statistics and Zoopla, to make five predictions on where to invest in the UK property market in 2019.

Founder and Managing Director of Surrenden Invest, Jonathan Stephens, comments;

“Nobody can ever see what the future holds – that’s the case regardless of Brexit. As such, looking ahead to likely investment hotspots is a case of examining the underlying market fundamentals. For 2019, that means cities with youthful populations and strong trends for city centre living. The UK’s rental sector is still growing, so 2019’s hotspots will be those areas in which populations are expanding rapidly, and where employment prospects are sound.”

 

The top five housing hotspots to watch

Birmingham

Between now and 2041 Birmingham is predicted to have a 14.5 per cent population increase making it the top of the property hotspot list for a property hotspot. Compared to the rest of the country Birmingham has a young population, hosting five university campuses with the UK’s third largest inflow of graduates with no prior connection to the city.

Most notably, the addition of HS2 will provide transport accessibility previously not available in the region, meaning travel times between Birmingham and Central London will be greatly reduced. This will have a massive knock on impact for working professionals.

The increased number of predicted working professionals in the future make Birmingham a property hotspot to watch.

 

Manchester

A firm favourite with many investors over the last few years, Manchester looks set to retain its investment accolades. Often referred to as the “London of the North,” new infrastructure in the region as a result of MetroLink tram extensions and the Northern Powerhouse development, have increased its popularity. In 2017, Manchester made it onto the top ten global destinations for foreign investment (as part of the Manchester-Liverpool metropolitan region).

Property prices have increased by 30.60 per cent in Manchester over the past five years and it is estimated that there will be a 14.1 per cent population increase from 2018-2041. The Property Reporter report that 30 per cent of housing in Manchester is in the private rental sector, in addition rental yields currently stand at 8 per cent.

Like Birmingham, Manchester experiences a steady influx of young people into the city with graduate returners at 58 per cent, second only to London. As a result, businesses such as Amazon have used this to their advantage by launching their Amazon Academy, aimed at helping support local businesses.

Demand is currently outweighing housing stock, providing great opportunities for interested investors.

 

London

It is not surprising that London is on the list for top property hotspots for 2019, acting as a hub for a whole host of industries. Projected population increase in this region is 15.4 per cent, with many people viewing the capital as a desirable cosmopolitan city catering for all manner of buyers seeking rental properties ranging from inner city apartments to semi-detached homes in the suburbs.

The Property Reporter single out North-West and West London as interesting prospects, following £4.5 billion regeneration projects in Cricklewood and Brent Cross generating approximately 7,500 new homes, amenities and infrastructure for residents.

In addition, West London is set to welcome the Elizabeth Line in 2019 meaning fast travel in and out of central London. Further regeneration is also expected in areas such as Ealing Broadway and White City, helping to support the local economy and standard of living.

The expanding rental market leaves buy-to-let investors plenty of opportunities in this area.

 

Liverpool

Liverpool has a current population of 495,300 with property price growth of 24.67 per cent over the last five years. Liverpool is expected to experience a population increase of 12 per cent due to its cultural allure and bustling service industry.

The Property Reporter highlights that 42 per cent of the population of Liverpool are under the age of 30, helping drive the city forward into an innovative and engaging city to invest in. This is aided by ongoing regeneration in the city, providing additional amenities for those living there.

 

Newcastle upon Tyne

Newcastle upon Tyne has experienced property price growth of 23.70 per cent in the past five years and its population has been growing rapidly, undergoing 112 per cent growth between 2002 and 2015. The number of students in the region has also increased by 20 per cent since 2000, bringing a new wave of young professionals into the property market and greater investment into the city infrastructure.

This offers the opportunity for savvy buy-to-let property investors to snap up in demand properties.

 

To conclude the regional round-up Stephens comments;

“Each of these cities has its own distinctive culture, which is drawing in young people who will ultimately contribute to the future success of that city. Those working in the housing sector need to respond accordingly, delivering high quality homes in central areas, in order to meet the demand that these young people are driving.”

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