Top 3 cities in the UK to invest in

PUBLISHED ON Dec 30, 2019

Residential real estate investing across the globe has come under increasing pressure over recent years. However what is also certain is that universally, the demand for private rentals continues to grow, and overall, despite any Brexit uncertainty, the UK remains one of the most stable markets in which to invest globally. This means there are still good opportunities for returns in the UK’s residential property market, if you know where to look.

Birmingham

Topping the list for 2020, Birmingham is one of the most popular locations for overall investment in the UK. Last year the city attracted the highest number of foreign direct investments outside London and the South East and with £billions in projects either ongoing or in the pipeline, it’s showing no signs of slowing down.

With 1.2 million residents already, Birmingham’s growth has outpaced all UK cities outside the capital in recent years, leaving a chronic under-supply of homes. As such, property price growth since 2014 has hit 19.30%, with Knight Frank predicting a further 12.5% by 2022. With rental yields for 2019 sitting comfortably between 4.4% and 5.3% according to PropertyData, the future looks bright for investors.

Manchester

Manchester continues to be one of the most exciting places to live and work in the UK – attracting young professionals chasing top careers and families alike.

The city has already enjoyed a raft of investment which has transformed its skyline and appears to be enjoying a resulting ‘ripple effect’, arguably similar to that of London over the past decade.

Property Price Growth since 2014 sits at 22.09% and rental yields have remained fairly strong, reaching an average of 7.30% in the Fallowfield area.

Liverpool

Liverpool is one of the highest-performing Buy-to-Let hotspots in the UK for rental yields. According to Property data the postcodes L7 and L1 are regularly achieving yields of 8.2% and 8%, with rises of 15% and 12% in the last five years respectively.

While price growth has slowed during 2019 after an outstanding Q4 of 2018, the birthplace of the Beatles remains a top investment destination in the North thanks to exciting developments, exceptional career opportunities and rising tenant demand throughout the region. JLL expects that property prices in central Liverpool will rise by 2% and rents by 3.5% throughout 2020.