Although 2020 is a challenging year, driven by the shift in priorities of homeowners (and renters) and the stamp duty holiday introduced by the government in July, the real estate market has so far shown explosive growth. The evidence is obvious to all: According to the September UK residential market survey by RICS, house prices in every region of the country rose in September, reaching their highest levels in 18 years.
Whether record prices and transaction levels will maintain momentum in 2021, we have not seen yet, but it is certain that the market will continue to move in either direction. For investors, the question will be, as the shift of priorities has changed the demand pattern across the UK, now more than ever, where is the most worthwhile town for investment in 2021?
Here, the leading British developer SevenCapital compiled the top ten real estate investments in the UK after analyzing trends and data from multiple key sources including Jones Lang LaSalle and Zoopla, taking into account past and past rents and The main return area for capital growth.
Table of Contents
1. Birmingham
Average Price: £202,162
Average Rental Yield: 5.4%
Price Growth in Five Years: 14.2%
Birmingham has continued to be popular in the past five years and once again topped the list of the best investment locations in the UK. The average rent has risen by 30% in the past 10 years and is expected to rise by 15.9% in the next four years. Seven Capitals figures can attest to the success of its own development projects in the city, including 105 Broad Street.
With many key projects coming and in preparation, especially the Midlands Metro expansion, HS2 and the 2022 Commonwealth Games, the only way is to increase the attractiveness of Birmingham, which has been touted as one of the best relocation locations . Londoner. By 2030, its population is expected to reach 1.24 million.
2. Manchester
Average Price: £242,311
Average Rental Yield: 5.37%
Price Growth in Five Years: 15.76%
3. Liverpool
Average Price: £186,527
Average Rental Yield: 5.30%
Price Growth in Five Years: 8.45%
Another popular rental hotspot in the Northwest, Liverpool has some of the best performing postal codes in the country-L1, commonly known as the Baltic Triangle, is one of Liverpool’s most fashionable places to live. In the past, it delivered 8.1% annually, while L7 did not have Birmingham despite its price growth. Or as high as Manchester, but Jones Lang LaSalle predicts a 13.1% growth in the next four years, but it will undoubtedly be supported by Liverpool’s 5.5 billion pounds. A water plan that will generate new public spaces and create 17,000 jobs. In terms of affordability, Liverpool is ideal for those looking for lower prices.
4. Nottingham
Average Price: £214,435
Average Rental Yield: 4.66%
Price Growth in Five Years: 16.92%
It is more affordable than Manchester. Although the price is the same as that of Birmingham, Nottingham has made considerable progress in recent years and is now an important investment area. Like Liverpool, the city also offers small areas with high returns of about 9%, including postcode NG1 in the city centre and NG7 where the University of Nottingham is located, although this has slowed down since the closure. The Queen’s Medical Centre is a “super hospital” with 6,000 medical staff, and the demand for Nottingham is increasing.
5. Newcastle
Average Price: £198,307
Average Rental Yield: 6.5%
Price Growth in Five Years: 6.2%
6. Leeds
Average Price: £268,037
Average Rental Yield: 5.1%
Price Growth in Five Years: 9.4%
With a population of 800,000, 73% of Leeds’s homes are currently being rented out, making it an ideal location for investors looking for long-term tenants and stable returns. The Leeds economy is one of the fastest-growing European cities. The country has a major impact on opportunities within the city, attracting nearly one in ten people to leave London each year since 2018. Although capital growth has been slightly less than 10% in the past five years, Jones Lang LaSalle predicts that growth will accelerate by 13.7% in the next five years. The five-year cumulative rent increased by 14.2%.
7. Edinburgh
Average Price: £333,691
Average Rental Yield: 4.19%
Price Growth in Five Years: 12.33%
Edinburgh is a frequent visitor on the residential investment rankings. Due to its immense popularity as a place to live and work, the Scottish capital has experienced excellent price growth over the past ten years, and its average price is slightly higher than most of our top ten. The positive impact on real estate prices in the next five years will reach 17.1%, the highest growth rate of any city in the UK.