UK’s top buy-to-let hotspots for 2019
December 17, 2018
It’s that time again, Christmas is quickly approaching and the year will soon be coming to an end. As a landlord (prospective or otherwise), now may be a good time to start thinking about fresh investment ideas for 2019. We’ve previously talked about why buy-to-let properties are a great investment, so why not make starting or expanding your property portfolio your New Year’s resolution?
We created the following guide with the help of Lendinvest’s latest buy-to-let index report, which considers factors such as yield, capital gains, rental price growth and transaction volume growth. We combined this data with our expert property insights to highlight the best buy-to-let hotspots in the UK for 2019, helping you to make informed decisions on your next big investment.
After previously taking the number two spot in 2017, Colchester has risen to the top spot of Lendinvest’s top 10 buy-to-let postcodes. Colchester has had the highest rental price growth out of any other area in England throughout 2018, taking the top spot at 6.5%. It’s therefore safe to say that the Essex town will be very popular with buy-to-let investors in 2019. With an increasing number of young adults choosing to rent rather than buy their homes, this is evidently an area for landlords to look out for as we move into the new year.
As the second biggest city in the UK, it is hardly surprising that Manchester makes this list. The city has featured frequently on the LendInvest index and takes third place in the report’s overall rankings, with an impressive average growth yield of 5.29%. Manchester has four universities, with an overall student population of around 100,000. Considering this promising statistic, it makes sense for landlords to focus on this particular area for buy-to-let prospects. We currently have a number of buy to let properties for sale in Manchester, such as this great apartment in Salford or this 2 bed apartment in Trafford Park.
Stockport is a new entry to the LendInvest buy-to-let index, having risen from 20th to second place between June and November 2018. This sudden rise is as a result of the impressive growth in capital gains (3.61%), rental price (3.18%) and yield (3.75%) in this area. The growing interest in property investment in Manchester over the past year and a half has obviously played a significant role in this. Stockport is increasingly being viewed as a local but more affordable alternative to its bigger, busier neighbour.
Birmingham has become something of a relocation magnet in recent years. Last year for example, around 7,620 people left London to live in Brum, making it the most popular city for ex-Londoners in the UK. Birmingham is also set to host the 2022 Commonwealth Games, and by 2026 the revolutionary HS2 train will take people from Birmingham to London in a mere 49 minutes. It’s safe to say that the number of people moving from the capital to Birmingham will only increase over the next five years. The city currently has an average gross rental yield of 4.49%, and has seen its rental price grow by 3.44%. Therefore, investing in a buy to let property in Birmingham may be a wise move for 2019. If this is an area you might be interested in, check out this property in Ladywood on our online investment marketplace.
Canterbury is another rising star to look out for in the housing market. The value of Canterbury’s housing market has risen by a whopping £127.9m throughout 2018. As well as this, LendInvest reports that Canterbury properties can return 7.83% in capital gains, which is the highest rate out of any other English city. With a growing student population of 40,000 spanning across two different universities, more and more people are going to be looking to rent in this beautiful and historic city.
The North London borough has grown in popularity over the past few years. It has great transport links into London and its close proximity to the M25 makes Enfield ideal commuter territory. As well as this, Enfield is set to undergo some major changes. A regeneration programme called Meridian Water is currently being carried out across the borough, and is to be completed by summer 2019. The £6bn scheme is set to build a number of public spaces and community facilities, as well as a brand new railway station which will take commuters to Liverpool Street in just 22 minutes. In addition, these changes to the borough are set to create over 6,000 new jobs.
Evidently, Enfield is one to watch in 2019. These prospects are reflected by the fact that Enfield has climbed 34 places in LendInvest’s list of top buy to let postcodes, now occupying the number 9 spot. So act quickly while house prices are still relatively low as Enfield is set to become an increasingly popular investment location over the coming year.
If you are thinking of investing in a new UK buy-to-let hotspot in 2019, get in touch with our friendly and knowledgeable team. Alternatively, check out our current property listings and jump into property investment market today!
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