Generally, the UK property market is projected to do well in 2020. You might think that due to political uncertainties, and stagnating house prices/sales in some areas of the country, that it isn’t the best investment type to go with at the moment, but the opportunity for success is still very much apparent in some thriving cities and apartment types growing in demand.
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Establishing and maintaining a positive investment strategy is something that many people aim to do, but when looking at property specifically, how do you make sure that you’re putting your money in the right areas and giving it the best chance at success? Well, for starters, here’s some more information on the importance of finding the right area.
Investing in the UK property market – Where do I start?
Investing in a general area that is enjoying growth will likely improve your chances of getting positive returns on your investment (and being successful with your venture), but there is a lot more that you could be doing.
Looking at the North West of the UK, for example, cities such as Manchester and Liverpool are among the most popular, but they might not provide a completely equal investment opportunity, at least at this current point in time. Assessing the market closely, property investment company RWinvest suggest that Liverpool is experiencing the same sort of economic growth and development boom that Manchester experienced a few years ago at this point, and while Manchester still remains one of the best investment prospects in the country, the opportunity to get in at an early point in Liverpool while the development is still thriving could possibly prove to be a more lucrative venture.
A closer look at Liverpool’s property market
Once you’ve chosen the city (or area) that you want to invest in around the UK, you then want to delve deeper, and look towards the specific streets, sectors and pockets of the city that might be the most popular among tenants, the most financially beneficial in terms of initial cost and rental yields, and the most exciting in terms of long term growth and promise.
These factors are particularly important to consider when thinking about the amount of different areas within your chosen city, as in a large city area such as London, for example, there are a wide variety of different prices, property styles and demand levels depending on where you’re looking. It goes without saying that it is beneficial to know the area that you are looking to invest in well, or at least to have done your research – or sought out advice from advisors/like-minded investors that have experience in the area you’re interested in.
As mentioned earlier, let’s take a specific look at Liverpool’s property market, and some of the most attractive prospects there.
Delving even deeper into this, Liverpool is one of the most promising areas of the country currently, with the top rental yield averages in the entire country according to Totally Money, and also six postcodes within the top 25, more than any other UK city. This means that all around the Liverpool city area, there are a ton of different places where the opportunity is there to make money on buy to let, but there are some places that are better to look towards than others. Perhaps unsurprisingly, the most lucrative postcode on the list is the largely central L1 postcode, which offers averages of 10%, the only postcode currently in the UK to reach this figure.
Highlighted hotspot – The Baltic Triangle
The Baltic Triangle area of Liverpool, for example, just outside the city centre, is one of the best places that you can invest in currently. A thriving pocket of the city with a growing number of bars, restaurants and nightlife, the area was once deemed the ‘coolest place to live’ in the UK by the Times, and many young people are looking to live and work their as it develops. Now home to a range of innovative digital businesses, the section of the city contributes massively to Liverpool’s economy, and is even a short walk away from the city centre, meaning residents wouldn’t be missing out on living at the heart of the famous city. These sorts of features show not just why the area is popular with investors and tenants, but also why it is perhaps more of an exciting spot to go for than other parts of Liverpool, despite them also having investment promise.
Property Profiles – Notable spots throughout the UK
To summarise, here’s an interesting piece of information about a few of the most interesting investments spots in the UK currently, that you should be taking note of to be in with the best chances of lucrative returns.
Average house price (according to Zoopla) – £178,668 – On the rise
Rental yield averages – 5.05% and above – Up to 10% in the L1 postcode
Notable feature – Aside from the stellar rental yield averages in this northern powerhouse city, which when paired up with the affordable pricing can make for a faster-than-average investment strategy, Liverpool’s regeneration is worth paying attention to.
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Average house price (according to Zoopla) – £653,828 – On the rise
Rental yield averages – around 3.05%
Notable feature – While London might not be the best investment strategy for everyone, due to its struggling rental yields and steep prices, those with significant capital can snatch up a beautifully placed property in an undeniably desirable, landmark city area. High-end, luxurious properties might cost multiple times over what a student apartment might cost in the north, but there is a market for them.
Average house price (according to Zoopla) – £226,676 – On the rise
Rental yield averages – Up to 7.92% in LS2 postcode
Notable feature – Again, much like Liverpool and other northern cities, Leeds is experiencing exciting levels of growth, which always help investment prospects, but another big reason for its appeal is the student population. Known as a culturally vibrant and opportunity-filled student city, many want to live there, and so many need accommodation.