Where is the best place to invest in property in the UK for high yields?

  • 11 months ago
  • 1

With the recent announcement made by Chancellor Rishi Sunak on stamp duty, a large number of buy-to-let investors have started returning to the property market again. To revive the property market, the stamp duty threshold on property sales has been increased to £500,000 for buyers in England and Northern Ireland and it’ll continue to be in effect until 31st March, 2021.

It means if you are first-time home buyer and the price of the property isn’t more than £500,000, you won’t need to pay any stamp duty. If the price goes above £500,000, a 5% stamp duty will only be applicable to the value above this threshold. Though for those, who are buying additional properties or second homes, an additional tax of 3% of the total value of the property will be applicable, this move has certainly made buying property cheaper than earlier.

Where to invest in UK?

If you too are planning to become a landlord, here are the top four regions, in random order, which tend to generate high yields.

  1. Liverpool

Thanks to its increasing tenant demand, outstanding career opportunities, and notable developments, Liverpool remains as one of the most popular investment destinations in the region. The rental market of the city has been heavily boosted by the completion of Liverpool ONE project involving redevelopment of 42 acres of land. Additionally, the city’s property market has been experiencing steady growth in house prices for several years. It means investing in Liverpool would not only let you enjoy a decent rental income but help you benefit from capital growth as well.

  • Birmingham

This is another investment hotspot for both capital growth and high yields. Thanks to its steady property price growth over the past few years, Birmingham is attracting a lot of attention and interest from property investors. With the rental market mainly comprised of 1-bed and 2-bed apartments, the city is experiencing a huge demand for properties, thus showing clear evidence of its potential to offer outstanding returns along with growth. The ongoing construction work for the Commonwealth Games 2022 Village is also promoting further development as preparations are being made for the event.

  • Nottingham

With its highly centralized location in the country and direct access to several major destinations, Nottingham has been offering decent capital growth for the last few years. This city, in the East Midlands region, has well-developed infrastructure and offers several opportunities such as the metro system. Since the property market here is comparatively affordable and experiences massive demand from both students and professionals, investing in Nottingham can bring both capital appreciation and high rental yields your way.

  • Manchester

Being a key player in the regeneration field in the country with several past and present redevelopment projects, Manchester has become a major destination for property investors. Additionally, the MediaCityUK property development project, which transformed Salford Quays Docs into an outstanding hub for business, has helped the city draw a lot of attention. Manchester has one of the most efficient and modern transport systems in the region – from HS2 plans to Manchester Metrolink, which make it a highly convenient place to work and live. For these reasons, the city is attracting both families looking for affordability and young professionals looking to explore outstanding career opportunities. As a result, Manchester has secured a place in our list of top places for property investment.

Final words

While you can and should explore the above places as your next property investment destination, you need to choose one that would help meet your specific investment goals. Ideally, your chosen location should be able to help you maintain a balance between capital appreciation and high yields so that you can make the most out of your property investment strategy.

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