What to Look for in your Next UK Property Investment Location
What to Look for in your Next UK Property
We’ve all been there… You’re looking for a new property investment, and conflicting news in the headlines points you all over the place in terms of location. Well, there are a number of interlinking points to consider when choosing where to purchase buy to let property, and if you take them all into account, finding the right destination can be easy.
Low Property Prices and High Rental Yields
Crunching down on the numbers is always the main focus for many investors, and it’s simple to see why. If analysed correctly, the market can provide generous rental yields off the back of low-cost property, but it’s essential to source the most superior areas throughout the UK that can deliver on results.
First of all, how attractive are high rental yields if you’re paying extortionate amounts for buy to let property? It’s possible to find a location where properties are affordable but still assure good rental returns. This winning combination can be achieved by looking into cities that offer high quality accommodation at much lower prices.
These cities tend to be slightly smaller and thus lower profile than the likes of the UK capital, so can’t afford to bump up prices so highly in the meantime, but properties actually perform better in northern locations compared to London on the whole. As underdog locations become more prominent in the future as the Northern Powerhouse catapults into success, property costs will inflate and echo the same patterns visible in London’s market. This will allow investors to cash in on capital gain, referring to property investments that have increased in value over years of ownership.
Ruthless Regeneration Projects
Regeneration is another solid indicator for lucrative property investment opportunities. Besides, who wants to live in a run-down street with little to no inspiring projects evolving nearby?
Multiple regeneration projects are taking place across the Northern Powerhouse including some of the largest investment schemes in the UK. Improved accommodation, innovative office spaces, stylish shopping complexes and more leisure facilities are just some of the vital features being redesigned to embellish the consumer experience in urban regions.
Investors can look for where it’s at by searching for regeneration in areas of interest. Locations that are attracting investment in housing, commercial and leisure developments are more than likely confirmed to pull in more people, and are big hits for property investment.
Unrelenting Tenant Demand
RWinvest say that ‘demand for property in the UK far outweighs supply’, and it is areas where this is most felt that investors should look to invest in. Cities in particular are the most sought-after locations for young people and students – rental accommodation’s target tenants.
Populations in British cities are generally rising but an influx of these two demographic groups is adding fuel to the already burning fire. Residential property currently doesn’t contend with the amplified number of tenants seeking property near or in the city centre, in terms of both quantity and quality. The truth is that there’s a desperate need for more luxury rented pads, but for now, rental yields are given a rare platform to reach all-time highs.
Additionally, only a shocking 26% of students have access to purpose-built student lodgings, insinuating an extreme lack of stock on the market for this kind of property. Investors need to locate cities with several high-ranking institutions that boast the biggest student numbers. If there isn’t enough high-quality student accommodation close to campus, investors can close in on the best apartments in the area that are sure to appeal to savvy undergraduates.