UK Property Investment Hotspots in 2022
With 2022 predicted to be fantastic for investment, we’ve put together the UK property investment hotspots of the year. Don’t forget to bookmark this page so you can come back to it throughout the year.
There are a number of locations in the UK that are emerging as very profitable places to own property. So, where are the UK property investment hotspots in 2022? Let’s take a closer look.
Where are the top UK property investment hotspots in 2022?
Birmingham
First of all, let’s start with a vibrant city that still holds the title of one of the best UK property investment hotspots. We are talking about Birmingham. This city has grown enormously in recent history and remains a favourite for investors, with price growth of around 17.44 percent in the last five years. It is even forecasted for prices to grow by 24 percent in the next three years. Indeed, 2022 looks to be a continuation of this success and more projects are emerging from the Big City Plan. It is also going to be a big year as the city is hosting the Commonwealth Games 2022.
Often something that investors look for is affordability and this is something that Birmingham offers. According to Knight Frank research, the ratio of average income to average property price is excellent and this means that skilled workers are staying in the city. Young professionals are also leaving London and coming to Birmingham, which is thought to drive up rent prices by around 12 percent over the next five years. The population in 2030 is predicted to be 1.24 million.
Rental yield in Birmingham
So, what is the rental yield for property investors? You are looking at above 6 percent in one- and two-bedroom apartments. There are new developments coming too, which gives plenty of opportunities to invest. For example, this includes St Martin’s Place.
Expected population by 2030
1.24M
Average rental yield
>6%
Predicted price growth in the next three years
24%
Bracknell
Next, is the town of Bracknell, which is within the Greater London Urban Area. The connectivity it boasts to London is something that is appealing, as well as being affordable for many. In fact, there are many famous and global businesses in Bracknell, including Microsoft and Dell.
Rental yield in Bracknell
Many people are attracted to this town since it is undergoing regeneration. Prices have grown by 249% in the last 20 years, however it still offers property at half the price of London. This means investors can also enjoy higher yields. Bracknell offers 5.48 percent while London offers 2.90 percent. Therefore, Bracknell is a town with opportunities, and you can look to capitalise on many young professionals looking for somewhere to live near London.
Price growth in last 20 years
249%
Average rental yield
5.48%
Edinburgh
If there is one city in the UK that investors know they can depend on, it is Edinburgh. Scotland’s capital city remains one of the best UK property investment hotspots in 2022. While prices have risen in Edinburgh, which will influence rental yields, there is still a demand to live in the capital. This means that you do not have to worry about turnover.
Over the next five years, it is predicted that price prices will rise by 24.4 percent. This is one of the best growth rates in the country. There are investment opportunities popping up in the city centre and this includes build-to-rent apartments.
Predicted price growth in the next five years
24.4%
Glasgow
While Edinburgh often gets a lot of attention, Glasgow is a big city in Scotland that is set to experience great economic growth over the next five years. In fact, it may soon rival Edinburgh’s place among the top UK property investment hotspots.
When it comes to sale prices, they are estimated to rise by around 24.4 percent by 2027. In addition, rental growth is supposed to be around 10.5 percent in the next five years. Glasgow Council has made it clear that the city is due to double its population by 2030 and there are around 4,000 rental homes, as well as multifamily schemes, being built that allows investors to become part of the plan.
Rental growth in the next 5 years
10.5%
Rental homes in development
4,000
Predicted price growth in the next five years
24.4%
Leeds
Next on the list UK property investment hotspots is Leeds. It continues to be a fantastic city to invest in when it comes to property. In particular, if you are looking for long-term rental opportunities, this is a Northern city to consider. In fact, around 73 percent of households in Leeds are renting, which is a lot of people in a city of 800,000.
Rental Yield in Leeds
The good news is that demand for rental properties is looking to increase. In the next five years, it is predicted by JLL that there will be a demand growth of 28 percent. With many build-to-rent schemes, this is a massive opportunity you can take advantage of. The average rental yield in Leeds is 5.76 percent.
Predicted demand growth
28%
Average rental yield
5.76%
Households in Leeds that are renting
73%
Liverpool
If you are serious about property investment, one of the best places in 2022 is going to be Liverpool. You can expect excellent rental yields at 4.82 percent on average. Of course, there are some postcodes that are much higher than this, such as L1 or the Baltic Triangle. Property investment hear can return rental yields of 8.1 percent. Other postcodes, such as L7 are also high-performing, boasting 10 percent annual rental yields.
Over the next four years, JLL believes that property prices will increase by 28 percent. There is a lot of regeneration happening in the city, in particular, the Liverpool Waters scheme. This is a 30-year development that is set to cost £5 billion, which will include 17,000 new jobs and plenty of interest for people looking to move to Liverpool.
Predicted price increase
28%
Average rental yield
4.82%
Manchester
When it comes to UK property investment hotspots, you know that Manchester is going to be on the list. This northern city’s price growth over the last five years, particularly in 2017 and 2018, is unseen anywhere else in the UK. However, the excitement does not stop there. In fact, future growth looks to be amazing with a predicted 28 percent price rise coming in the next few years. This is going to be down to the growing population, as well as economic growth in the area.
Young professionals are particularly attracted to Manchester. It is an alternative to London and there are a lot of career opportunities in the north. Demand for housing here will continue with the Great North Rail project.
Predicted price rise in the next few years
28%
Newcastle
For affordability, make sure that you pay attention to property in Newcastle in 2022. Despite some challenging capital growth in recent years, it is a fast-growing city, with many graduates choosing to stay in Newcastle. In particular, it is popular for start-up businesses, as well as being home to corporate headquarters. With so many career opportunities here, there is plenty of opportunities to be successful with rental properties.
Rental Yields in Newcastle
As the eighth biggest city in the country, Newcastle offers good rental yields at an average of 5.23 percent. In particular, you can enjoy higher yields at about six to seven percent in certain postcodes, including NE1 and NE2.
Average rental yield
5.23%
Nottingham
Nottingham is often underestimated when it comes to property investment. However, this city is due to show everyone how much potential it has in 2022. You will find that properties are going to be more affordable here compared to other major cities.
Education is driving a lot of people to Nottingham. In particular, there are two UK universities here, as well as Queens Medical Centre. This means that there is demand for rental properties by students and professionals. We are talking about there being more than 6,000 medical staff looking for somewhere to live near Queens Medical Centre.
Average rental yield
4.92%
Rental Yields in Nottingham
While rental yields have decreased due to the pandemic, sitting now at around 4.92 percent, studies have shown that it shows long-term future growth. In fact, JLL has stated that Nottingham will display the best yield growth and capital growth in the country.
Sheffield
One of the budding UK property investment hotspots in 2022, Sheffield has a lot of potential, especially if you are looking for good rental yields. Lockdown struck a lot of areas around the UK hard, but one place that came out on top was Sheffield.
This city in South Yorkshire has also had substantial investment by local authorities and this includes £480 million in the shopping district. Not only does this attract more people to the city, but it has also helped with yields in nearby postcodes, with them being about 7%.
Shopping district investment
£480M
Average rental yield
7%
Which UK Property Investment Hotspots are Best for Property Rental Yields?
If you are looking to make a rental income, there is plenty of opportunity in the UK. The main cities you want to look at when it comes to good rental yields are Birmingham, Manchester and Leeds. These are affordable and desirable cities, with Birmingham offering a 6.56 percent yield.
Surprisingly, Bracknell also makes the list for one of the best places in the UK for rental yields. This town might be in an expensive market, but it still offers a 5.48 percent rental yield for investors to enjoy. You should also not rule out investing in Scotland, with both Edinburgh and Glasgow delivering long-term yields and expected rent growth in the next few years.
UK Property Investment Hotspots are Best for UK Property Capital Gains?
If you are looking for capital gains investment, there are many key areas in the UK you will want to examine. Namely, Birmingham is proving to be a good place to invest, with a 24 percent growth rate in the next five years. In addition, this city has experienced one of the best growth rates in the last 12 months. Manchester and is also predicted to show price growths of 28 percent in the next five years.
In Scotland, Glasgow is making a lot of progress and offers many affordable property investments opportunities. Over the last five years, it has experienced price growth of 17.01 percent and will boast a 24.4 percent increase in the next five years.