As the UK property market continues to thrive, more and more people are looking to invest in buy-to-let properties. But with so many locations across the UK available, it can be difficult to know where the best place is to invest.
To help make your decision, we have compiled a list of the top 10 buy-to-let property hotspots in the UK for 2022. These locations offer great potential for rental returns, as well as capital growth over the next few years. So, if you’re thinking of investing in property, read on for some inspiration!
- Manchester
Manchester has seen house price growth of 7.4% in the last year, according to Zoopla – well above the national average of 3.9%. With house prices in the city still relatively low compared to other UK cities, now could be a good time to invest in property in Manchester.
The city is also a popular choice for renters, thanks to its diverse range of amenities and strong transport links. There is a growing demand for rental properties in Manchester, which means that there is potential for strong rental returns.
Rental yields in Manchester have an average return on investment of 5.2%. This is higher than London (3.4%), Birmingham (4.8%) and Liverpool (5%). With a large student population and strong demand for rental properties, Manchester is a great location for buy-to-let investors.
- Birmingham
Like Manchester, Birmingham is another UK city that is undergoing significant regeneration. This is resulting in the city becoming increasingly popular with renters, as more and more people are drawn to its improved facilities and amenities.
Rental yields are also favourable, making it a city where investors can expect to see a good return on their investment. There are a variety of properties available in Birmingham, from traditional family homes to modern apartments, so there is something to suit every investor.
Birmingham is also set to benefit from several new developments in the coming years. These include the construction of a new high-speed rail link, as well as a host of new office blocks and residential buildings. So, if you’re looking for a city with great potential for future house price growth, Birmingham could be a great option for you.
- Liverpool
Liverpool is another major UK city that offers great potential for buy-to-let investors. The city has seen significant regeneration in recent years, resulting in an ever-growing population and a very high demand for rental properties.
Liverpool’s economy is now one of the fastest growing in the UK, thanks to its thriving business sector and expanding tourism industry. These factors have all contributed to an increase in property prices in Liverpool, making it a sound investment destination. And with excellent transport links to the rest of the country, Liverpool is also an ideal base for commuters.
Liverpool is set to benefit from several new developments over the next few years. These include the completion of the development of the Liverpool2 docks, as well as the construction of a new arena and convention centre. If you’re looking to invest in the buy-to-let market, Liverpool is worth considering for continued high rental demand and house prices are always growing in value.
- Leeds
Leeds has become an increasingly popular choice for renters, who are attracted to its lively atmosphere and excellent transport links.
Young professionals are increasingly looking to Leeds as a property investment destination. The city is bustling with energy, yet still offers relatively affordable property prices compared to other major UK cities.
There is a strong rental market in Leeds, as young professionals are drawn to the city for employment opportunities and its vibrant nightlife. Moreover, Leeds is well-connected, with good transport links to other parts of the country.
Development is also strong in the city, including the redevelopment of Leeds Bradford Airport, as well as several new housing developments in the city centre. This makes it an ideal base for young professionals who need to travel for work. As a result, Leeds is an increasingly popular choice for property investors looking to tap into the rental market.
- Bristol
Bristol has long been a popular destination for property investors, and it’s easy to see why. The average rental price in the city is £1,380 per month, which is significantly higher than the national average of £728.
The average rental yield in the city is 5.5%, which is also significantly higher than the national average of 3.3%. Furthermore, Bristol has seen strong growth in both house prices and rental values in recent years. In the last five years alone, average house prices have increased by 17.5% (compared to a national average of 9.6%), and average rents have risen by 11.8% (compared to a national average of 6.8%).
What’s more, Bristol is set to receive even more investment over the next few years. This includes the redevelopment of Bristol Airport, as well as several new housing developments in the city centre. As a result, few cities in the UK offer as much potential for capital growth and rental income as Bristol.
- Edinburgh
Think Edinburgh and you’ll conjure up images of an idyllic, picturesque city – a UNESCO World Heritage site no less, renowned for its history, culture, and architecture.
The Scottish capital of Edinburgh is one of the most popular tourist destinations in the UK, attracting millions of visitors each year. And it’s not hard to see why – the city offers a wealth of history, culture, and natural beauty, as well as being home to some of the best universities in the country. All these factors make Edinburgh an appealing place to invest in property.
There is a strong demand for rental properties in Edinburgh, especially from students and young professionals. The city’s thriving economy and growing population are also providing opportunities for those looking to buy property to live in or to sell on at a profit.
What’s more, house prices in Edinburgh have been rising steadily in recent years and are expected to continue to do so. So, if you’re looking for a city with good potential for capital growth and healthy rental yield, Edinburgh should be high on your list.
- Glasgow
Glasgow has long been a popular destination for property investors for good reason. Not only is it Scotland’s largest city, but it is also home to a diverse range of businesses and industries. The city benefits from strong transport infrastructure, with two international airports and a major rail hub.
In recent years, Glasgow has transformed, with significant investment in regeneration projects. As a result, the city is now home to a growing number of bars, restaurants, and hotels. With its rich history and vibrant culture, Glasgow is an increasingly attractive proposition for property investors.
The city offers a great mix of tenant demand, price growth potential and rental yields, making it an attractive option for buy-to-let. In recent years, Glasgow has seen strong price growth, with the average house price rising by over 5% per year. This is in line with the wider UK market, which has seen prices increase by around 4% per year over the same period.
The rental yield in Glasgow is also very attractive, averaging around 6%. This is higher than the average for the UK, which stands at around 4%. Tenant demand in Glasgow is also high, thanks to the city’s strong economy and growing population. This makes Glasgow an appealing option for property investors looking for good returns on their investment.
Glasgow is set to benefit from several new developments over the next few years. These include the completion of the Glasgow Airport development, as well as the construction of a new arena and convention centre. If you’re looking to invest in the buy-to-let market, Glasgow is worth considering.
- Sheffield
Sheffield is an up-and-coming city that offers a great opportunity for property investment. Tenant demand is high, and prices are still relatively low compared to other cities in the UK.
The average rental price has grown by 5% in the last year, and it is expected to continue to rise as the city becomes increasingly popular with young professionals and families. Sheffield is also well-connected, with good transport links to London and other major cities.
There are several new developments planned, including the completion of the Sheffield Airport development, as well as the construction of a new arena and convention centre. Sheffield is worth considering as an investment location for its lower prices, continued house price growth and healthy yields.
- Cardiff
Cardiff is the capital city of Wales, known for its beautiful architecture, its lively nightlife, and its friendly people.
Cardiff is also a buy-to-let hotspot, with properties in the city experiencing strong growth in recent years. Buy-to-let investors have been drawn to Cardiff by the city’s strong economy, with house prices rising by an average of 5% per year.
The city’s universities are also a major source of rental demand, with students often struggling to find affordable accommodation. With its excellent transport links and plentiful amenities, Cardiff is an ideal location for buy-to-let investors. And with house prices expected to continue growing, now is an ideal time to invest in property in Cardiff.
- Belfast
Belfast is one of the most up-and-coming cities in the UK, and property prices are reflecting this. The city has seen a boom in investment in recent years, and there are no signs of this slowing down.
The property market is strong, and there is a growing demand for rental properties. Belfast is well-connected, with excellent transport links to the rest of the UK and Ireland. And, of course, the city has a rich history and culture, making it an attractive place to live.
The buy-to-let market is booming, and house prices are forecast to continue to grow. There are many reasons for this, including the city’s strong economy and its growing population.
If you’re thinking of investing in property in Belfast, you should get a feel for the different areas of the city. There are plenty of opportunities for buy-to-let investors in Belfast, and with the right property, you could see healthy returns on your investment.
Conclusion
The UK is a great place to invest in property, and the buy-to-let market is thriving. If you’re thinking of investing in property, now is a great time to do it. And with house prices forecast to continue to grow across the UK, there are plenty of opportunities for buy-to-let investors to make a healthy return on their investment.
