Investment in rental properties is one of the most popular ways to save for the future in this day and age. With returns of between five and eight per cent possible, and a rise in demand as fewer people opt to own a home year after year across the UK, it’s no surprise that rental investment is thriving across the country.
But investing is about more than simply buying a rental home and waiting for the money to start rolling in. You need to know where to invest, and why, to ensure you have the best chance of success. Here, we take a look at a few of the stars of the British rental market and why they make great places to invest in property.
Without a shadow of a doubt, the Northern Powerhouse cities are some of the best to invest in at the moment away from London. With a focus on creating a thriving economy in the north and investment to back up those desires, it’s clear that places like Liverpool, Manchester, Leeds and Sheffield have the potential to bring investors in property therein strong returns for years to come.
The regeneration of Liverpool and the subsequent migration of more businesses there in the next few years is set to make the city a fantastic modern place to not only work, but also live. This is likely to bring an influx of young professionals to the city, who will be looking for purpose built rental properties that give them the lifestyle they want to lead.
It’s a similar story across the Powerhouse as well, with Manchester seeing a continued rise in media companies and Leeds’ rise in digital marketing industry standings both helping to bring more skilled young people to the region, increasing demand for investment in new rental stock.
And things are only likely to get better in the major northern cities over the next few years, with the government having recently announced better transport links, which will see the Northern Powerhouse linked better to the rest of the country through HS2, with the work set to start in 2021 and finish by the mid-2030s.
Birmingham has a number of different reasons to invest, chief among which in recent years has been its rather sizeable student population. But times are changing, and it’s now the business potential that Birmingham has that is helping it step up to the plate as a place to spend on property.
In recent years, the city has become something of a hub for the tech industry, benefiting from the skills exodus of young qualified people and the Shoreditch exodus, which has seen young professionals look for new places to live and work, and companies following them to the second city, which has helped to push demand therein.
At present, Birmingham is a growing tech city, with over 6,000 companies employing more than 40,000 people, but it’s not done yet. Tech is growing 32 per cent faster than any other industry in the UK, and as it continues to grow, it will only bring more and more potential tenants to the city, making it a prime area for investment from those looking for a piece of the rental market.
With the high prices for renting properties in London – many private tenants are paying far in excess of £1,300 per month for small flats – it’s no surprise that in recent years there has been something of a trend for people who work in London to live outside of the capital and become commuters, and it’s a trend that is still ongoing.
Look at any number of towns surrounding London, and you will see a rise in the number of people who are heading into the city for work each morning. This makes places like Luton, which is close to the capital, has great transport links and a fantastic investment plan behind it, a great place to invest for the future.
Luton currently has a strong level of demand for rental homes that is only likely to grow, as well as a multi-billion pound regeneration plan in place for the future, and the ability to allow those with the foresight to invest there to make fantastic returns in the coming years.
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Experience Invest Developments are in property hotspots across the UK and provide investors with assured rental returns.
Located in London Victoria, Experience Invest has a team of property experts ready to answer questions about UK investment property. Contact the team today to find out how the team can help you with your next property purchase.