2019 Hotspots: Buy to Let Property Investment
Investors wanting to Brexit-proof their portfolio in 2019 will be looking to growing and youthful populations as a key-influencing factor alongside cities with strong investment prospects due to a thriving local economy and high levels of regeneration and investment from government initiatives such as the Northern Powerhouse.
2018 Population: 1,147,000
Property Price Increase Rate since 2013: 36.8%
Birmingham is top of the list of the best UK Buy-to-let cities in 2019. There is an incredible level of inwards investment here, huge development in Birmingham’s infrastructure and a predicted population growth of 13.5% to reach a population of 1.3 million by the year 2039. Birmingham has the youngest population in Europe and their five universities feed talented post-graduates and young professionals into the local and global businesses setting up headquarters here.
Birmingham has the largest business, professional and financial services hub outside of London and has attracted huge corporations like HSBC, Deutsche Bank and PwC. The growth and demand for City living, with contemporary apartments is securing investors rental yields between 5 and 10%.
The development of High-Speed Rail 2 (HS2) brings London closer than ever but Birmingham is also home to many large scale developments;
£700 million Paradise development
£500 million Birmingham Smithfield regeneration and Arena Central
Birmingham won the bid to be the first City tested for 5G mobile network
Hosting City of the 2022 Commonwealth Games
Birmingham was the second fastest growing UK city in 2018 and has forecast growth over the next 3 years 2019 – 2021 of 14%.
New Developments in Birmingham to watch in 2019:
The Interchange, prices from £120,000
Arden Gate, prices from £192,000
2018 Population: 545,500
Property Price Increase Rate since 2013: 33.6%
Manchester is at the heart of the Northern Powerhouse and continues to impress because of its incredibly strong rental market and student population. With a very young population just like Birmingham, this is feeding key talent into the cities economy and fast tracking the cities growth. It is on track to experience a 14% population growth over the next 20 years and is one of the UK hotspots for foreign and UK investment. Manchester is a top performer in the UK property investment market as a result.
Manchester has a 70% graduate retention rate making it the highest outside of London. The supply and demand for more rental properties has seen the cities skyline filled with new developments providing modern, high quality city living apartments. Enviable employment options are available and will see the cities growth continue for many years to come. Over the last 10 years alone it has increased by 27%!
Manchester’s significant levels of investment bolsterers its credentials, Manchester remains a consistent performer alongside Birmingham and Liverpool in the UK’s top areas for rental growth in 2019.
New Developments in Manchester to watch in 2019:
The Waterhouse, prices from £143,000 on the River Irwell
Deansgate Square South Tower, prices from just £177,000
2018 Population: 161,055
Property Price Increase Rate since 2013: 53%
Newcastle’s population has grown by 112% between the years 2002 and 2015. It’s city living lifestyle has also appealed to many more young professionals in recent years so this is a city to watch as it is likely to follow in the steps of other northern cities like Manchester and Liverpool.
Experts have identified Newcastle as one of the most affordable cities for property and it is ideal for BTL property investor favouring long-term growth and where they can get in early. On the commercial side, Newcastle has attracted very large companies such as British Airways, Nestle, HP, Siemens and Ubisoft that cover a wide range of industries.
Newcastle is not far behind Manchester in experiencing some of the highest staff and graduate retention rates in the UK. There are enviable employment opportunities that continue to grow and these are further supported with a £12.5 million investment in the digital infrastructure of the City that has delivered one of the fastest broadband speeds in the UK and it has provides free city-centre Wi-Fi.
Although property prices in Newcastle have increased at a slower rate than some of its northern counterparts, they City has still shown very positive property price growth over the last 5 years increasing by a huge 23%.
New Developments in Newcastle to watch in 2019:
Quayside View, prices from £87,000
Contact our investment team to explore property investment opportunities