Manchester, Birmingham and Edinburgh will be this year’s hot property
Property prices in the UK’s regional cities are expected to outperform the capital in 2017 amid market uncertainty over Brexit and stamp duty.
UK investments face another year of uncertainty in the face of political turmoil, Brexit and a weak pound. But the question that every property investor is asking in whether the UK property market will continue to buck the trend and show the same resilience that has been seen over the past five years, while other investments have struggled.
The answer, according to most experts, is a cautious “yes.” Prices are generally expected to either remain stable or see slight growth across most of the UK. However, there are some areas where significant growth is expected, meaning there is still significant money to be made from residential investment property, if you look in the right places.
Unusually, London does not figure in the top three, although reasonable growth of about 1% is still expected there. But it is to the UK’s regional cities that the most shrewd property investors will be looking in 2017.
Nobody will be surprised to see Manchester at the top of the list when it comes to property investment. The millions of pounds that have been ploughed into regenerating the city centre have paid dividends, and the city has seen steady population growth.
Rental yields are very strong, particularly in the northern and eastern areas of the city, while property prices are still reasonable. For example, a new development of purpose-built studio flats was recently constructed close to the university campus in the Salford area, and these are selling for less than £100,000. But do not expect prices to stay this low for long!
For some years, Birmingham’s resurgence was overshadowed by even bigger and better growth in Manchester. But now, the attention of property investors is firmly fixed on the UK’s second city and the surrounding West Midlands metropolitan area.
There are plans to create 50,000 new homes over the coming years to accommodate continuing population growth, but as demand continues to outstrip supply, there can be no doubt that Birmingham will remain a top investment hotspot for years to come.
The average rental property brings in over £1,000 a month, but there really is something for everyone in the city, and opportunities are to be had at both ends of the property scale.
For example, Castle Vale, to the east, has seen significant investment and improvements in recent years, but is struggling to shake off its 1970s image of inner-city deprivation, and as such, prices (and rents) remain low. At the other end of the scale, the fashionable area of Digbeth is one of the most popular spots for affluent families with money to spend.
Scotland’s capital has a thriving local economy and has also seen significant improvements in infrastructure over recent years.
The city has a large number of students and young professionals, and again, demand is outstripping supply when it comes to homes, spelling good news for property investors.
A number of new developments, such as the £23 million pound Haddington Place complex that opened last year, offer excellent investment opportunities, and there is also a steady demand for family homes in the suburbs.