Research into some of the world’s leading property markets has highlighted Manchester, Leeds and Liverpool as global property investment hotspots. Due to the return on investments, as reported by property investment company IP Global, Newcastle looks likely to also join the top of the investment league table.
Manchester is currently maintaining its place at the top of this table. We are seeing growth on a large scale going on within the city, with house prices rising, showing an 8.6% increase from October 2016 to October 2017. Rent prices are also anticipated to increase by 16.5% from 2018 to 2022.
Taking a look at Liverpool, we can see the ways in which it too is thriving. Investments have contributed to the city experiencing economic growth of a faster rate than the rest of the UK. Its performance in property investment also shows it to be one of the best locations, with average rental yields of 6.2%. House prices are on the up, with an increase of 14% since 2015. Rent prices are reflecting a significant rise as well, with a 17.6% growth predicted from 2018 to 2021.
Leeds is also experiencing a period of substantial progress. Looking at the rental industry, we should see an 18.8% growth between 2018 and 2021, with its student population contributing largely to this. Key growth industries are bringing a 6% annual job increase to the private sector. With this rise in population, Leeds sees itself in a position where the 90,000 residential units expected to be completed by 2021 will be in high demand. However, it does appear to be behind on this schedule, with only 60,000 units in the development pipeline. There are plenty of eager renters and buyers in Leeds, due to its promisingly strong future for development, so it is likely the full 90,000 will be needed.
Despite not quite being at the top with the rest, Newcastle still has a lot to be proud of, and might not be far off joining them. If development cannot keep up with demand, then IP Global believes this will happen shortly. Newcastle’s digital industry is driving the economy, accounting for 40% of all business and contributing to more than 27,000 jobs. Renting is becoming more popular, with an increase of almost 60% in the amount of properties entering the market over the last 13 years.
With the high amount of current interest in the rental market, Just Landlords would like to remind you of the products we provide to landlords. If you are looking to invest and are in need of insurance, we offer the widest cover on the market as standard, protecting your building and contents.