With house prices falling and a general slump in the property market due to factors ranging from the cost-of-living crisis to increased mortgage rates, many buyers are wondering what the best locations are to purchase property going into the new year.
Whether you are buying a home to live in or to let out, getting the location of your next property right can save you thousands of pounds and will help the value of your home increase at a greater rate compared to other areas, increasing the capital value. Investors can also benefit from higher rental yields.
In this article, we’ve analysed the best up and coming locations in the UK where you can get value for money and see a nice return on your investment.
Manchester
Manchester has been a favourite for property buyers over the past several years and shows no sign of slowing up, with average rental yields of 8.5% and predicted property price rises of 19% by 2026.
The city has witnessed extraordinary development in recent years with high-rises popping up all over the city centre and the city becoming a popular alternative to London for young professionals.
Oxford economics has also predicted that Manchester will see the highest economic growth rate of all UK cities. With this, it’s easy to see why it’s such a good location to buy!
Liverpool
Property in Liverpool is very affordable compared to the rest of the country, with the average property price sitting at £150,000 compared to an average UK house price of £265,000. Better still, prices are also predicted to rise by 19% by 2026, meaning there is plenty of money to be made by investing in property here. Rental yields average at 7.2%, making it particularly attractive for investors.
Previously suffering from economic decline, huge investment has turned Liverpool into an economic and cultural powerhouse with plenty to offer people of all ages.
Birmingham
If you don’t want to invest in the north, Birmingham is a good option with low house prices averaging at £218,000 and great growth of 16% by 2026.
Benefitting from a convenient, central location in the country, the arrival of HS2 will only make the city even more connected. The Big City Plan will also bring additional jobs and investment to Birmingham, meaning demand for property will increase significantly over the coming years.
Nottingham
Nottingham boasts some of the top rental yields in the country at 9.5%, meaning it is extremely popular among investors. Relatively low house prices at approximately £180,000 also mean a good level of affordability, with growth of 16% by 2026.
According to property portal Zoopla, the average time to sell a house in Nottingham was 25 days, demonstrating the demand for property here.
It is a popular city among young professionals and particularly students (who make up 13% of Nottingham’s population), meaning there is a lot of demand for rental properties.
Burton
If you’re not looking to buy in a major city, the town of Burton in East Staffordshire is showing some strong numbers. Property prices are predicated to increase by a whopping 22% in the next five years and property remains affordable with an average house price of £205,000.
Burton is conveniently located, with Birmingham, Derby, Leicester and Nottingham all within commutable distance, making it a great contender for a city worker who wants to escape the urban jungle when not working.
Preston
Another alternative to the big cities, Preston lays claim to some impressive rental yields, averaging out at 9.2%. Coupled with this, house prices are very low, at an average of £150,000. Overall, it has the second highest rental yields and third highest capital growth in the UK.
On top of this, there is a £435 million infrastructure development plan going ahead in the town, which will in turn only attract further business and development.
This article was written by an online estate agent House Sales Direct. If you wish to sell your house fast and for free, then head over to the House Sales Direct website for more property related information and enquiries.
