With 2018 now upon us, anyone thinking about investing in buy-to-let wants to know what’s going to happen over the next 12 months. From house prices to locations, we look at the top five buy-to-let hotspots for this year…
Jonathan Stephens, the Founder and Managing Director of property investment agency Surrenden Invest, which has helped 700 clients invest in UK bricks and mortar over the past two years, shares his top five buy-to-let hotspots for 2018:
Manchester will remain robust, with city centre fringe redevelopment schemes offering the best opportunities. The city is tipped for rapid growth over the years ahead. Its population is projected to expand by 20% by 2025, reaching 625,000 residents, according to city analysts.
Such a rapid turnaround in population size is never easy for city planners to address, and Manchester is estimated to be around 40,000 homes behind the number it needs, with demand continuing to put pressure on supply.
Pressure on city centre land remains incredibly high, thus it is to the outer fringes of the city that tenants are moving to, taking advantage of more affordable housing. With house prices significantly lower than in city centre sites, this is where buy-to-let investors need to be looking when it comes to Manchester.
The UK’s second city (by population) will continue to be one of the strongest buy-to-let markets in the country this year. Often overlooked, Birmingham has a great deal to tempt buy-to-let investors in 2018. Its youthful population and the huge number of graduates that the city produces every year have created an excellent environment for entrepreneurship.
One part of the city in particular – Digbeth – has become a hotspot for new businesses and cultural activities, attracting large numbers of young professional residents. Stephens expects to see Digbeth, just ten minutes from New Street Station, booming with gentrification this year, so now is the time to buy, before prices soar.
Liverpool will continue to offer low price points and strong growth potential. Ten years on from being announced as the European Capital of Culture, the city has gone from strength to strength.
Liverpool has a thriving, service-based economy, which was worth £29.5 billion in 2015, and the city is leading the UK’s Northern Powerhouse initiative in terms of its overall gross value added (GVA) growth and its growth of GVA per capita. Economic output will continue to improve, with the likes of Cunard Shipping bringing a large share of its operation back to where it all began this year.
A growing population and plenty of blossoming talent, backed by strong economic credentials and a buoyant property market, make for an ideal environment of opportunity, boosting Liverpool up the list of cities to watch most closely in the UK over the coming year.
The capital will remain slow this year, with some prominent city centre locations seeing prices drop. Anyone who lives in London, or indeed reads the newspapers, will know that the capital’s property market slowed in 2017 and, while the long-term outlook for one of the world’s top real estate markets remains optimistic, the impact of slowing house prices will be felt, especially if we see further interest rate rises.
However, undervalued pockets of the capital will continue to offer irresistible opportunities, particularly those locations set to benefit from Crossrail, which is due to open later this year.
Newcastle will be the dark horse of 2018, according to Stephens. Along with its twin city Gateshead, Newcastle has been quietly waiting in the wings, growing in population and economically over the last couple of years.
2018 will be the North East city’s time to shine, as a higher than average economic activity rate, rising house prices and significant local investment mean that Newcastle is becoming something of a favourite with businesses and investors alike.
Surrenden Invest predicts big things for buy-to-let investors in this hidden gem this year.
Landlords, do any of these buy-to-let hotspots stand out as potential investment options for 2018?
We remind all landlords that we offer the widest Landlord Insurance on the market, giving your properties 40 essential covers as standard. Get a quote online now: https://www.justlandlords.co.uk/landlord-insurance