Great Alternative Property Investment Destinations in the UK

UK property is currently performing well, particularly in major regional markets, and is proving popular with investors both at home and overseas. Knowing exactly which part of the UK to invest in is the key to success. For many, the days of heading straight for London have been ended by high prices and ever-dwindling yields, but many of the UK’s regional cities, especially those in the North have proved more than ready to step into the gap. Some of the markets which really stand out at present are:

Manchester

Manchester is home to 2.5 million people and the largest economy of any UK city besides London. The average asking price of properties in Manchester at the moment is at a relatively affordable level of just under £144,500, while the average rent is an attractive £862pcm. Yields are therefore strong, and with a fast-growing population and significant levels of investment lined up, the future of Manchester looks very bright indeed. Key investment districts include the East of the city close to the Etihad stadium, which has reportedly seen price rises of 150% in ten years, and the North which is seeing heavy development of both new stock and converted space.

Leeds

Offering average yields of 8.1%, Leeds is a strong choice for profit-focused investors. Like many of the UK’s best markets, it partly draws strength from its status as a university city with a significant student strand in its population. There are a number of established student residential areas in the city ideal for attracting this crowd, and many students are now starting to favour other areas, such as the busy city centre or the less urban suburbs. Rents are significantly above national averages, prices are lower than Manchester, and price growth across the whole county of Yorkshire is currently strong and is expected to stay that way.

Newcastle

Newcastle has been singled out more than once as being among the UK’s best buy-to-let destinations. Returns can be up to 9% in key areas, putting them around 50% above national averages, thanks to low prices and strong rents. Once again, student property investment plays a key role, with properties targeting this demographic performing especially well. Excellent transport links, recent cultural regeneration programmes, and a strong business scene all serve to create high levels of demand. A wealth of new development projects and a major investment programme worth a total of £92 million across four key sites, meanwhile, serve to provide a number of opportunities for investors to get involved in the Newcastle property market.

Sheffield

One recent report suggests that Sheffield offers the best returns for buy-to-let investors of anywhere in the UK. After analysing over 2,600 postcode areas around the UK, TotallyMoney.co.uk found that gross yields on offer for investors in the city were an impressive 11%. Sheffield is one of the key cities in Yorkshire – a county which, as mentioned above, is currently experiencing robust capital growth.

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Peter Scully

Marketing Director at SF Media

Keen author and blogger. Peter writes on a number of topics he has a personal interest in, including brand promotion, marketing, social media, online marketing and small business advertising.