Investing in property – particularly buy-to-let – is a popular choice for both landlords and people who want a nest egg or money-earner on the side. It is, however, important to remember that it must be viable to let the property. In order to make the most out of your property, it is vital that you choose a dynamic market where there is enough demand for your type of property. This article outlines 5 British cities which are attractive options where the rental market is thriving. Remember – research any area yourself before deciding to buy!
Birmingham: The Second City
Birmingham is a great investment potential – a period of growth nicknamed the ‘Brummy Bounce’ has made it an attractive option, with PwC naming it the 6th best city for investment in Europe. There is great potential for student housing in areas like Selly Oak – near the University of Birmingham campus – and the Perry Barr area near the Birmingham City campus and Villa Park. Transport links to London and major cities are superb, and the tech industry and plethora of employment opportunities in the city makes it a target for recent graduates. Nearby Solihull and Sutton Coldfield are some of the most desirable places to live in the country and have links to Coventry and Birmingham without the feel of a city centre.
Hull: City of Culture
Often the butt of unfair jokes, Hull has come into its own recently as a thriving city. As the UK City of Culture in 2017, Kingston upon Hull is beginning to show the rest of the country what it has to offer. Property prices are reasonable compared to similar cities in the South, and rent yields have historically been good for landlords. As a seaside town, Withernsea can draw an impressive return for investors. Investment in the city and a new wind turbine factory opening have increased interest from investors recently, so property prices may be set to rise in the near future.
Manchester: heart of the Northern Powerhouse
Consistantly featuring on lists of top places to invest in property over the past few years, Manchester has earned its place in this article. The idea of the ‘Northern Powerhouse’ is most evident in Manchester, and the thriving student community and local identity contribute to the city’s dynamic atmosphere. Good bus and cycle networks in areas like Fallowfield and Moss Side near the University of Manchester campus have made them an attractive area. Heading towards Salford, areas like Claremont and Langworthy are attaining the best rental yields and are equally popular with students, being situated between the University of Salford and Manchester city centre.
Gloucester: an historic Cathedral City
Gloucester is often overlooked and followed by the caveat ‘not Cheltenham’, but this small, unsuspecting city has a lot on offer for renters and landlords. Packed to the brim with historical importance, with a university and stunning surroundings, Gloucester is very different from the other cities on this list. Redevelopment and regeneration spearheaded by the Gloucester Quays development is a sign of things to come in the city. Matson offers a fair amount of ex-council stock for those looking for cheaper rents, while Churchdown and Abbeymeade offer more upmarket spread that is attracting a more professional renter. Gloucester has a large and diverse renting population, making it a solid bet for investment.
Glasgow: Scotland’s modern city
Glasgow has previously been listed as the best place in the UK for student rentals, and as home to the University of Glasgow, Strathclyde and Caledonian, Glasgow City College and the Nautical college, it is no surprise. The West End is the most popular area, not just due to its large student population and proximity to the university, but the vast array of attractions and things to do in the area. Kelvingrove, Byres Road and Ashton Lane all offer very different benefits for renters, so landlords should think about the type of tenant a property will attract. Cathcart has more families, graduates and professionals and is close to the city centre, while Tollcross was renovated for the Commonwealth games. Both are central and offer an alternative option to student housing.
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