Top 3 Buy-to-Let Areas [2022]

Top 3 Buy-to-Let Areas [2022

Buy-to-Let property investment is proving to be one of the best strategies for investors at the moment, with the UK market, in particular, seeming to stand tall amongst the rest.

With 2021 seeing some of the most prominent house price growth in more than 15 years, now more than ever may just be the best time to get involved.

But, where should you look?

Well, without further ado, here are some of the top property investment spots to keep your eye on.

Liverpool

Comparatively low housing prices and massive rental demand have made a Liverpool investment property a hot item for investors.

Firstly, the maritime city boasts some of the most impressive investment properties, with some high price growth to boot.

According to Zoopla, Liverpool has beaten out some of the UK’s largest cities in terms of price growth – seeing an increase of 10.3% on the year and 32% over the last five years.

With a young city center population (75% are aged 17 to 29) and rental prices set to rise by 3% in 2022, private landlords can expect solid returns from a purchase in Liverpool. 

Previously a city suffering from economic decline, regeneration efforts have helped the city blossom into an economic powerhouse – and a very profitable one at that.

The city has continuously been on an uphill trajectory, maintaining its top reputation throughout the pandemic and (hopefully) beyond.  

Luton

As the price of living continues to skyrocket, it should come as no shock that many are struggling with life in London.

And as people tire of the capital city, many are starting to look beyond it for new ventures.

One such place – and it may come as a surprise – is Luton

With its close proximity to London and its reputation for solid transport links, the commuter town is probably one the most appealing investment alternatives when looking at buy-to-let.

A popular destination for many first-time buyers in the UK, this is definitely one to keep your eye on – especially for those looking for solid capital gains with a lower entry point.

With a solid regeneration plan, the town is looking to combat its housing shortage by building new homes to meet demand.

According to Zoopla, the average rent in London is 27% higher than that in Luton, standing on the average at £839. In addition, property investors can count on a gross average rental yield of 4% in Luton.

And, with London’s business district just around 22 minutes away from Luton town center, alongside railway connections to Leeds and Sheffield, Central Luton is a crucial investment hotspot with room to earn far higher returns – particularly for those targeting young professionals as potential tenants.

Manchester

Likely the heavyweight champion of the buy-to-let investment world, Manchester property investment is consistently one of the best UK markets to get involved with. Top 3 Buy-to-Let Areas [2022]

With prices in the entire North West region predicted to increase by 28% by 2026, barring any scandals, it wouldn’t be a surprise if the city continues to dominate the market going forward.

Like Liverpool, Manchester has also seen a major transformation over recent years, with a significant increase in property prices.

In fact, a recent study showed that Manchester homes had seen the highest price increase over 20 years, with a rise of 143%, from £73,910 to £179,537.

Another solid competitor to London– perhaps even eclipsing it entirely – all signs seem to point to a rise in capital appreciation returns, rivaling its impressive increase between 2017 and 2018.

Manchester is one of the top destinations for young professionals – due to an impressive global business and employment growth of 84% between 2002 and 2015 – only narrowly losing out to those in the Midlands.

Conclusion

So, there you have it.

Like most things, investment works best when you have one eye toward the future.

Whilst some of these cities may not appear to be the best place to buy investment property today, these are probably some of the most exciting spots to keep your eye on, especially when looking ahead to the future.

With property figures continuing to rise and there seemingly being not a whisper of stagnation on the horizon, this year could be the perfect opportunity to broaden your ventures and invest in UK property.

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Top 3 Buy-to-Let Areas [2022]