We are always keeping our finger on the pulse here at CPG and our research team is constantly evaluating the best locations in the UK for property investment. So from time to time we will update you on what we believe are the best locations for investment and the reasons why.
There are a number of factors that we take into consideration when assessing different locations, so we ask ourselves these questions:
- Is there sustained economic growth?
- Is the population of the location increasing?
- Is the demand for property high and the supply low?
- Are there good transportation links (existing or planned)?
- Are there good universities at the location?
Having answered all of these questions we can now bring you our view of three of the top locations you should consider for your next property investment project.
You may not be aware of this but Manchester is now in very high demand across Europe for property investment. The city attracts a great deal of interest from investors across the continent and further afield. It has done this for some time now.
In 2020 the population growth (so far) is 60,000. Compare this to 2001 when the growth was only 3,000. There are more than 2,000 international companies that have chosen Greater Manchester for their base. The economy of Manchester is actually growing at a faster rate than the United Kingdom as a whole.
The property market is booming in Manchester. Property advisors, JLL, estimate that the city centre will require the building of 2,500 properties every year just to stay up with the demand. For the past decade only 1,150 new properties have emerged every year.
Zoopla data for quarter 2 of 2020 identified a 5 to 1 demand to supply in the private rental sector. Experts believe that the North West of England, where Manchester is the largest city, will see the strongest property price growth of any region in the UK.
The student rental market has been one of the most resilient areas of the property market for the whole of Europe for many years. Purpose built accommodation for students is the way to go, and student property investors in Cardiff have seen really high yields and strong long term returns compared to the rest of the UK.
There are 3 universities in Cardiff and the most prestigious of these is Cardiff University. Around a quarter of the students that attend Cardiff University come from overseas which has given Cardiff a real cosmopolitan feel. The student population in the city continues to rise every year.
International students are looking for a luxury and modern place to stay and as a result the demand for purpose built student accommodation has risen by 137% since 2010. But the demand to supply ratio is currently at 2.5:1 so there is plenty of opportunity for investors.
Birmingham is a very good choice like Manchester for investors that want to avoid investing in London. In the last two decades there has been significant population growth in Birmingham. There was a 163% increase in the Birmingham population from 2002 to 2015 according to Centre for Cities research.
The city is centrally located in England and has excellent transportation links. This is attracting a number of global brands to Birmingham. Birmingham’s economy has increased faster than the wider West Midlands area over the last 10 years and the experts forecast this to continue for the next decade.
Last but not least, the UK’s HS2 (High Speed 2) rail line will be a big help to the city as Birmingham will be a major hub for it.