Marketplace
Here at CPG we want to provide you with the latest news and opportunities for property investment in the UK. One town that has emerged recently is Nuneaton as it shows great potential for capital growth. In 2019 Nuneaton saw house price growth in double digits as well as other locations like Stockport, Bedworth and Leicester.
Post Office Money Findings
Post Office Money analysed data from the ONS (Office for National Statistics) to identify the price of houses and affordability for first time buyers in more than 80 locations all across the United Kingdom.
The findings of Post Office Money are helpful to buy to let investors because the information in their report reveals the prime locations. In the last year the UK has seen stagnation with house price growth of around 0.9% despite the fact that growth is still continuing. Now the average UK home costs £282,713.
Look for Capital Growth and High Yield Rental Income Opportunities
You need to fully explore capital growth and rental income opportunities in the medium to long term. This will help you to identify the best locations in the UK for buy to let investment. Don’t be concerned that overall house price growth has slowed down.
There will always be areas like Nuneaton which experience significant growth in house prices. Properties in areas such as this represent good medium term investments especially because they are in locations that are affordable. Areas that are good for first time buyers tend to indicate that they will be growth hotspots in the future.
If you live in the South of England then you need to be prepared to “get on your bike” because your area is in a slowdown whereas other UK cities are experiencing significant growth such as Cardiff at 9%, Sheffield at 7% and Birmingham and Nottingham at 6%.
The Number of Rentals in the UK continues to rise
If you have doubts about the buy to let market in the UK then you need to be aware that in 2007 there were 2.8 million households renting and in 2017 this number jumped to 4.5 million. This is a 63% increase.
This shows you that the demand in the private rental market is still there and growing. So there is going to be a need for more buy to let investments in 2020 to satisfy the demand. But the best opportunities for these investments may not be in your back yard so you may need to look beyond your current investment area.
So here are our tips for making good hotspot buy to let investments in 2020:
Identify the Hotspots
The best buy to let investments provide a good rental yield and have the potential for good capital growth. So when you are looking for hotspots pay close attention to whether they have experienced growth in recent times as a lot of areas in the South are stagnating.
Fully Research the Hotspot Area
You need to know all that you can about the hotspot. Find out if there are any plans for the area which may cause growth to stagnate in the future. Also look for investment in the area from the government, the local council and any big businesses looking to move in.
Find out what kind of people are looking for homes in the area. Is it mainly families or a student community? You are looking for potential tenants here so you want to ensure that your property will be in demand.
