Hot Spots for Property Investments
It is a surprising truth that, despite the persistent UK market slowdown, some areas in the UK have seen rental price growth over the past 12 months, with private rents rising up to 0.4% in London and 2% in the rest of England. As weak as the growth prospects for the UK economy appear to be, investors still exist and in fact, at least 2 to 5 landlords plan to invest in another buy to let property in 2018 as house price inflation is up to 5% this year from 4% last year. We have tried to index where the opportunities continue to abound for UK property investors.
If you are looking to invest in London, keep in mind that the capital faces the second lowest growth in total, only because it seems that rents in areas such as Chelsea, Canary Wharf or Barnes are pretty much the same as they used to be. On the other hand, predictions show that areas affected from the pricing growth from now until two years time, appear to be Royal Docks from £800 to £1000 per square feet, West Ham £700 to £950 and Leyton £675 to £800. We are sure that the new Queen Elizabeth Line, which is going to open its doors to the public around December 2019, has something to do with it as it is going to cover a big part of East London, which lacks public transport infrastructure compared to the central and west parts of the capital. In addition, developers put emphasis on more affordable homes in these areas, which seems promising.
Rest of the UK
If London seems out of reach, then the rest of the country has to offer a plethora of options. Based on four critical metrics, capital value growth, transaction volumes, rental yield and rental price growth, it seems like the Midlands is the obvious solution to invest with Colchester also climbing its way to the top. With quick commuter links to London and lower house prices compared to other areas around, this historic town has seen the most activity in the market. Second in the list is Northampton, which has enjoyed capital gains upward to 10% in the past 12 months. Third but equally privileged is Leicester, that has climbed its way to top 3 after staying in the bottom of the top 10 since 2017. The Leicester market has seen a great increase and a further growth is expected due to the redevelopment project which started in 2012 and has upgraded the town.
Markets to watch
Focus begins to shift away from the South East of the country, with the South West providing better investment opportunities, such as Bristol (#12 in the Index), Swindon (#17), Truro (#19) and Gloucester (#21).