When investing in property, you need to consider the location. If you choose the wrong location, you will see low returns on your investment and you will want to avoid this when possible. Fortunately, there is some advice that you can use to help you choose the correct location for your UK property investment.
Looking At Urban Areas
Most property investors will look at urban areas because they are generally the best performing locations. Urban areas are being regenerated at a greater rate than the more rural areas which makes them a good investment option. However, you do have to consider which urban area you look at investing in.
Many property investors are turning to the North of England and investing in hotspots such as Manchester and Liverpool. These areas are becoming more popular compared to the southern areas and the returns are better. The cost of property is lower in the northern cities which ensures a better ROI in terms of buy to let properties.
Where In The Urban Areas?
Knowing that you should look at urban areas is a good step, but you need to choose the right location within these areas. It is recommended that you work with a local real estate expert to better understand the local market. Certain areas of the urban location will generate a better return than others.
If you are not working with a local expert, you will need to look at the level of demand and the typical rental yields. The potential for capital growth is also important as you want your investment to work for years to come. Areas with positive predictions for price growth are the first areas you should look at.
When looking at these indicators, the north-west region of the country is the best option. There is a predicted house price growth of 21.6% for urban areas in this location over the next 5 years. This is higher than any other area in the UK.
What About London?
Property investors no longer consider London to be a lucrative market. This is due to the combination of high purchase price and low rental yields. There is also low house price growth as the market is reaching a peak. This is one of the reasons why many investors are looking further afield.
If you are considering investing in property in the UK, you need to consider the location. This will play a large role in the return on investment and the overall costs of your purchase.