Where to invest for buy to let in 2018?
With buy to let, location is everything. Where you invest can significantly determine a substandard investment from a successful one – even a high spec, fully furnished property will struggle to bring in a rental profit if it’s in the wrong location. Tenant demand, strong rental yields, affordable prices and capital growth should also be a focus for all potential buy to let property purchases.
As the popularity of buy to let increases, it’s important for investors to understand the key attributes of a good location. Spotting trends can allow you to pinpoint a good hotspot and secure a great investment deal. Our team has a proven track record of being ahead of the curve, and through careful research and thorough analysis, we’ve highlighted four cities where you will see great returns for your money this year.
Predicted Price Increase: 28.2% over the next 5 years*
Average returns via Sequre: 16.3% PA
Economy Worth: £59.6bn
The city has consistently remained a favourite among buy to let investors for several years. It’s topped reports for the highest rental yields in the UK, fastest growing property prices as well as obtaining a high graduate retention rate. As the London property market has suffered, Manchester has built a great reputation over the years and is arguably the number one buy to let location in the UK right now.
With the second fastest growing economy in the UK, Manchester has more in store for the future. A recent report by Deloitte highlighted Manchester as one of Europe’s fastest growing cities and a number of multi-million-pound projects are in the pipeline for the coming years, which will boost the property market even further; this includes projects such as the expansion of MediaCityUK, Airport City and Circle Square. Economic growth has also been propelled as Manchester remains the key driving force behind the government’s Northern Powerhouse project. As a city for investment and employability, the future is bright.
Predicted Price Increase: 22.8% over the next 5 years*
Average returns via Sequre: 20.2% PA
Economy Worth: £121bn – the UK’s second largest economy
Following on from being named as the city of European Culture in 2008, Liverpool’s popularity has soared. Heavy regeneration and continued investment has transformed the city over the last decade and with this development came a booming property market.
The city itself is considered a thriving business district, bringing in a wealth of economic growth thanks to its powerful links across the globe. This international status has made Liverpool a hotbed for tourism as well as a desirable location to both live and work. With the likes of Paddington Village already creating a buzz in the area, Liverpool has already begun to see an impact on growth levels and is predicted to see over £5.5bn worth of future investment within the next five years.
Predicted Price Increase: 13.7% over the next 5 years*
Average returns via Sequre: 11.5% PA
Economy Worth: £19bn
The East Midlands region is predicted to have one of the fastest growing property markets in the UK, with Leicester currently flourishing. Over the last 12 months there has been a sharp rise in the number of property sales within this area and Leicester will no doubt continue to be the driving force behind the significant growth predicted over the next 5 years.
For investors looking for capital growth in a city currently on the cusp of the boom, there’s no doubt that Leicester is the ideal location. With a booming tourism trade and a strong workforce of over 1.2 million, rental demand is on the increase. Along with several new residential developments in the pipeline, such as Space Park and the restoration of Friars Mill, 2018 is set to become a pivotal year for the property market in this city.
Predicted Price Increase: 21.6% over the next 5 years*
Average returns via Sequre: 14% PA
Economy Worth: £64.6bn
Being a major university town makes Leeds a prime location for buy to let. Three large universities within the city centre keep the student population high and the city retains a continuous cycle of tenant demand as a result. Investors can take advantage of graduates and young professionals on a constant search for high quality rental property.
The South Bank regeneration scheme is currently the largest regeneration project underway in Europe. Once completed, this new initiative will expand the realms of the city centre and create thousands of new employment opportunities as well as a number of modern residential developments. This scheme is set to transform Leeds as a city and could further strengthen an already thriving economy and business growth. For landlords, rising house prices and strong rental yields are a tell-tale sign of what Leeds has to offer.
Looking to start or expand your property portfolio in 2018? At Sequre, our team of professionals are best placed to advise you on your next investment choice. No matter what your level of experience in property investment, Sequre can provide you with discounted property in the right locations that benefits from both capital growth and high rental yields to bring you the best possible returns. To find out more, call us today on 0800 011 2277.
*Figures from JLL forecast