10 UK Hotspots For Property Investment In 2021

Are you looking for UK buy-to-let opportunities in 2021?

There were assumptions that 2020 was going to be the year the property market recovered. This was after the challenges presented by 2019, as well as Brexit. Then the coronavirus pandemic began. Lockdown was certainly not on anyone’s radar or something that could have been predicted. However, the property market in the UK defied the odds and it still enjoyed a lot of progress. In fact, investors are calling it a mini-boom and it is sent to continue up and down the country into 2021. So what are the hotspots for property investment in the UK?

hotspots-for-property-investment

The RICS survey reveals some good news that all investors are going to want to hear. In September 2020, every region in the UK enjoyed a rise in house prices. This meant an 18-year high in property prices. Singletons, couples and families continue the demand for housing, as priorities are changing through the global pandemic. Homeowners are upgrading and downsizing, as well as many looking to take advantage of the stamp duty holiday.

Indeed, there are going to be a lot of good opportunities with the current state of the property market. Let’s take a look at the best places in the UK for property investment in 2021.

How we have chosen the UK buy-to-let hotspots…

First of all, it is essential to explain the criteria we have used to choose the best places to invest in in the UK. This is going to allow you to gain a better understanding of our findings and how you can enjoy buy-to-let property investments in the UK.

Here are factors that we considered during our result:
      • Property prices
      • Regeneration
      • Career prospects
      • Demand from tenants
      • Demographics of tenants
      • Transportation links
      • Buy-to-let opportunities
      • Population

Hotspots for Property Invesetment | Birmingham

hotspots-for-property-investment

Since 2016, Birmingham has been an upcoming place in the UK to consider investing in. Indeed, it is going to continue to be one of the best spots for property investment in 2021.

Known as the second city due to its populace and GDP, Birmingham is starting to benefit from the Big City Plan, as well as being the home of the Commonwealth Games 2022. These are just some reasons why JLL state that the City of a Thousand Trades is set to be the fastest growing city in the UK over the next five years. In particular, a 19.5 percent rise in property prices is predicted to be on the cards.

For many people, affordability is one of the best things about the city. For example, Knight Frank Research has found that Birmingham enjoys a fantastic average income to average property price ratio. In other words, it is a city that is intriguing and keeping skilled workers. They have the income to enjoy a good life in Birmingham and contributing to the growth of the city.
 
For property investors, you will be interested to know that there has been a 30 percent rise in average rents recorded in the last 10 years. Indeed, there is a predicted rise of 12 percent over the next five years too. This is due to many young professionals that are deciding to leave London. By 2030, there are set to be around 1.24 million people living in Birmingham.
 
In the city centre of Birmingham, the market is dominated by one and two-bedroom apartments. Property investors are enjoying rental yields of around 4.7 percent and 5.5 percent. More promising figures are sure to emerge with improving quality standards and developments like St Martin’s Place.
 
Transportation links are an important factor to look into. Indeed, this is something that Birmingham benefits from and will continue to do in the future. The Midlands Metro is continuing to expand and work is still being continued on HS2.
 

Here are some statistics you are going to want to know about Birmingham:

Average price

£202,162

Average rental yield

5.4%

Predicted price growth in the next five years

14.2%

Hotspots for Property Investment | Bracknell

A town in Berkshire, England that is experiencing a period of growth is Bracknell. Since London has not been doing well when it comes to recovery, South East towns are emerging and boasting affordability. Indeed, they still have good transport links that allow people to travel to the capital.

 

Bracknell is growing in popularity and it is already a base for many well-known companies. This includes technology brands, such as Dell and Microsoft. Regeneration is accelerating in Bracknell and this is going to bring many rewards for the town and mean that it is going to be in-demand in the future.
 
Over the last two decades, there have been price rises of around 249 percent. Interestingly, prices still remain almost half of what you can expect of the average property in the capital. In other words, investors can look forward to higher rental yields. In London, this would be 3.04 percent, while Bracknell offers 3.98 percent.
 
There is a regeneration plan that is worth £770 million. This is due to have a fantastic impact on property prices in the area. Indeed, it is likely to be one of the factors that have led to the predicted 17 percent rise of prices in the next five years by knight Frank Research.

Average price

£383,788

Average rental yield

3.98%

Predicted price growth in the next five years

11.02%

Hotspots for Property Investment | Edinburgh

Moving up north on the map to Scotland we find that Edinburgh is still one of the best spots for property investors in the UK. Over the last 10 years, the price growth of property has been exceptional and this is set to continue into 2021.
One thing to realise is that this can lower rental yields. However, the demand to live in Edinburgh, Scotland’s capital city, remains very high. Therefore, the desirability of this spot means that there is less turnover when you invest in property in Edinburgh.
 
Research from JLL also suggests that there will be growth in the city’s economy. Over the next five years, this is predicted to be around a 17.1 percent growth in property prices that can be enjoyed through property investment. This is one of the highest growth rates you will find in the UK.
There is a lot of future developments happening in Edinburgh that look promising. In particular, there are new-build apartments in the city centre that are going to be in demand and good investment opportunities.

Average price

£333,691

Average rental yield

4.19%

Predicted price growth in the next five years

12.33%

Hotspots for Property Investment | Glasgow

Another city in Scotland that will be interesting for property investors is Glasgow. It is predicted that the economy in this busy city is going to be growing at the same rate as Edinburgh during the next five years.

In particular, over the next five years, sale prices of property are set to rise by 15.4 percent. There is also predicted to be rental growth in Glasgow, which is by 13.4 percent. In addition, there are a lot of future developments that are promising in the city. This includes 4,000 rental homes and other schemes. Indeed, the city centre population is set to double by 2030.

Average price

£194,545

Average rental yield

5.2%

Predicted price growth in the next five years

15.05%

Hotspots for Property Investment | Leeds

If you are experienced when it comes to property investing, you probably knew that Leeds would be on our list as one of the UK hotspots. Indeed, this is going to be one of the best cities in the North for long-term rental opportunities.

A very interesting statistic for property investors is that 73 percent of people in Leeds are renting. This is a high percentage for a city with 800,000 people. Therefore, you can look forward to tenant demand when you offer rental opportunities in Leeds. Over the next five years, JLL states that there may be a rise of 13.7 percent in rental demand.

Average price

£268,037

Average rental yield

5.1%

Predicted price growth in the next five years

9.4%

Hotspots for Property Investment | Liverpool

One of the best places for investment in 2021 is Liverpool. This is a city that can provide fantastic rental yields despite weaker price growth than other places around the UK.

In fact, you will be pleased to hear that some of the postcodes with the best rental yields in the UK are found in Liverpool. In addition, JLL states that there will be a 13.1 percent rise in property prices in Liverpool over the course of the next four years.

But let’s get back to rental yields in Liverpool. For example, L1 is a much-desired place to live in Liverpool and you can enjoy a rental yield of 8.1 percent per year. Alternatively, L7 boasts rental yields of 10 percent annually.

 Liverpool is going to continue to grow in the near future. Regeneration is happening in this city, such as the Liverpool Waters Scheme. Almost 17,000 jobs will be created with this £5.5 billion plan.

Average price

£186,527

Average rental yield

5.3%

Predicted price growth in the next five years

8.45%

Hotspots for Property Investment | Manchester

Perhaps a large city you expect to see on our list is Manchester. Indeed, this is a hotspot for investment due to its capital appreciation returns over the next five years.

Future growth is also looking good, with JLL predicting a 17.1 percent rise in property prices moving forward. The economy is growing in Manchester, as well as the population.

If you do not want to invest in London, Manchester is the next option. It boasts an 84 percent growth in employment between 2002 and 2015, becoming a popular city for young professionals. What’s more, the Great North Rail project is set to improve transport links, meaning that 40,000 more passengers can get to where they need to go.

Average price

£186,527

Average rental yield

5.3%

Predicted price growth in the next five years

8.45%

Hotspots for Property Investment | Newcastle

Home to one of the best rental yields in the country is Newcastle. By population, this is the eighth biggest city and it is an affordable hotspot. It offers a lot of potential for the future since it has an amazing graduate retention rate.

In addition, it has a growing start-up business scene. in other words, young professionals are coming to Newcastle and they are wanting to stay. Rental properties will be in demand.

Newcastle is also home to corporate headquarter and other career opportunities. The city can offer something for everyone. So, properties are highly sought after and this makes Newcastle a good investment opportunity in 2021.

Average price

£198,307

Average rental yield

6.5%

Predicted price growth in the next five years

6.2%

Hotspots for Property Investment | Nottingham

Making it onto the list of the UK hotspots for property investment is Nottingham. Perhaps this was not a city you considered before. But, in the last few years, it has made a lot of progress and it is more affordable than other big cities in the UK.

Importantly, there are good rental yields to be enjoyed when you invest in Nottingham. This include about 9 percent in popular postcodes, such as NG1 and NG7, in 2019. Although this has slowed down due to the pandemic, it is likely to remain at a good rate. The tenant demand is high due to being home to two big universities. There is also a large hospital, Queens Medical Centre, which has around 6,000 staff. In other words, rental properties are highly sought after.

Average price

£214,435

Average rental yield

4.66%

Predicted price growth in the next five years

16.92%

Hotspots for Property Investment | Sheffield

Last but not least, we have Sheffield. 2020 saw this city begin to show potential for investment. Indeed, it is likely that this potential is going to be realised in 2021 and moving forward.  In particular, rental yields are going to be where Sheffield excels.

A lot of money has been spent to improve the shopping district within Sheffield. This has been about £480 million and it is having a tremendous effect on the city. More amenities are being made available to meet demand in the area, which is causing rent yields of around 7 percent in some central postcodes.

Lockdown has certainly not affected Sheffield. In fact, Zoopla has found that sales were up by 20 percent by the end of 2020. 

Average price

£209,405

Average rental yield

5%

Predicted price growth in the next five years

11.41%