UK property is considered among the most attractive investment options in Europe. For many investors, the potential for good returns in many of the UK’s cities is a motivating factor, as is the opportunity to build a portfolio and maintain a steady income over time. However, as with any investment, knowing which regions promise greater yields than others and the major types of investment are vital aspects to keep in mind.
A significant number of property investors in the UK consider the following forms of investments:
- Buy to Let: Buy to let is popular with investors as it provides returns in the form of capital growth and rental income. This form of investment is considered a long-term venture.
- Buy to Sell: Investors who buy to sell typically purchase a property, undertake refurbishment, and then sell it for a higher price. It is a good option for investors seeking to achieve large returns in a relatively short period.
- Property Development: Some investors choose to undertake the construction of a new property from the ground up. This form of investment gives the investor full control over the venture, and once the building is complete, it is sold for a profit. However, developing a new build can take time and require significant resources.
Based on these options, new investors looking to invest for the first time, or existing ones looking to add more properties to their portfolio, can make an informed decision. Zuneth Sattar belongs in the latter category, having begun his property interests with residential units for rental purposes. These still make up a large portion of his property business, and he is continually looking to the UK’s hotspots to add to his portfolio.
Birmingham is a common choice for investors looking to invest in a high-performing city with promising future prospects. Between 2002 and 2015, the city is estimated to have recorded a 163 percent rise in residents, translating into increased demand for housing. Additionally, the average rental rates have risen by 30 percent in the last ten years, and observers predict these rates to rise by 15.9 percent in the coming half-decade.
The city’s location provides excellent access to international and domestic transport links, and its economic expansion has appealed to many brands and businesses with offices in the city. Furthermore, key projects such as the development of the High-Speed 2 (HS2) rail line, the 2022 Commonwealth Games, and the extension of the Midlands Metro are all expected to boost Birmingham’s economic activity and appeal as a vibrant and diverse city.
With a steadily growing population, Manchester is not only increasing in numbers but also in economic activity. More than 2,000 foreign-owned businesses have a presence there, and the city’s economic growth rivals that of the entire UK. All these positive trends combine to result in a demand for residential properties to cater to the city’s need, thereby assuring investors of good returns should they choose to invest in Manchester.
Liverpool offers considerably lower house prices than other close cities. Additionally, the city has various regeneration projects in the pipeline that promise to increase economic activity, not to mention a vibrant port, top universities and a thriving tourism industry. Liverpool is also well connected to transport links, ensuring that residents can connect seamlessly to other parts of the UK.
For investors, the potential of strong yields is quite appealing, especially considering that house prices in this northern city remain comparatively lower than other major regions in the south.
Home to a strong student population, Cardiff’s appeal as a property investment hotspot is boosted by the resilient performance of its purpose-built student accommodation (PBSA) sector. PBSA units are the preferred choice for many of the city’s students. For investors, these units promise potentially good returns, given the rising student population.