Identifying the next up and coming property hotspots is the holy grail of property investment. Despite volatility in the property market, UK real estate remains one of the most stable, secure and popular asset classes in the world. Due to rising house prices, demand for rental property has doubled since 2002 and it’s estimated that 20% of the UK’s population will rent within the next five years.
Appetite from international investors to add UK buy-to-let accommodation to their portfolios continues to grow, but where are the best places in the UK to invest?
What should property investors be looking for?
Step one is identifying the towns and cities with a growing population where demand is outstripping supply. Strong student retention rates, big businesses announcing re-location plans (think HSBC moving to Birmingham, Channel 4’s new HQ in Leeds) or major infrastructure plans like HS2 are all great indicators. Where’s the Government looking to invest? Locations like Manchester, Liverpool, Derby and Newcastle have all benefited from the £4.8 billion Levelling Up Fund.
But it’s no secret that these places are prime locations to invest. Zoopla’s recent UK House Price Index Report revealed that house prices are growing fastest in Nottingham, with Manchester and Birmingham not far behind. The trick is identifying the pockets of value within these cities and towns. The up and coming neighbourhoods being regenerated with public and private sector investment. Places on the outskirts of London like our Heathside development between Lewisham and Greenwich. The commuter belt locations which became popular during COVID like Solihull near Birmingham or Altrincham near Manchester.
What are the hot spots for 2023?
Birmingham: With HS2, a booming economy and one of the youngest populations in Europe (and that’s before the Peaky Blinders’ effect) Birmingham is frequently named as one of the UK’s best places to live. But where in the City are the hotspots for investment? Our money is on areas like the Gun Quarter. For many years a centre of the world’s gun-manufacturing industry it’s now being tipped to rival the Jewellery Quarter for city living in the next decade. Take the old Gunsmith House which is being restored to its past glory with 85 stylish apartments showcasing the area’s distinctive heritage and character.
Manchester: Voted the UK’s most liveable city in 2022 (28th in the world) and with the highest graduate retention rates in England, any property investor has got to be looking at Manchester. As well as regeneration hotspots in the city centre, if you’re looking for value there are good opportunities slightly outside of the City. Like the Civic Quarter in Old Trafford where a regeneration masterplan covering the Town Hall, Lancashire Cricket Club and the University Academy 92 (founded by Manchester United’s Class of 92) is set to deliver 4,000 new homes. Or over the border into Salford where our Pavillion Wharf development has been our fastest selling to date.
Nottingham: with the UK’s fastest growing house prices Nottingham’s having its moment in the spotlight. A huge improvement programme by the Council – which has seen the redevelopment of the market square and regeneration of the Broadmarsh shopping centre – has seen the city transformed over the last few years. And there’s more to come this year with plans for the ‘Green Heart’, a green space the size of Nottingham Forest’s football pitch right in the city centre. Whether it’s the leafy suburbs of West Bridgford or the riverside location of Trent Bridge Quays, Nottingham has plenty to offer.
With demand for rental properties set to soar during 2023, the opportunities for investors in the UK market are huge. API Global’s market leading research led approach identifies the up and coming locations where investors can capitalise on upward trends and achieve sustained capital and rental growth. For further tips on the best places to invest visit https://www.apiglobal.co.uk/
By Michael Leighton, Chief Executive at API Global
Michael Leighton has over 20 years experience in structuring, marketing, and distributing real estate products both in the UK and overseas. As a fully accredited MRICS (Member Royal Institution of Chartered Surveyors) professional, Michael has held senior roles with major corporate real estate companies such as CB Richard Ellis (UK & Dubai) and DTZ (Hong Kong).
As the residential asset class in the UK is unregulated, Michael took this opportunity to take a sidestep from commercial property, and establish API Global, focussing on residential investment, with a professional approach and a regulated mindset.