As we wave goodbye to 2019 and welcome a new year – and new decade – it’s time to look at the best places to invest in 2020: here are our top picks for this year’s property investment hot-spots.
Birmingham is possibly one of the popular locations for investment in the UK. Its economy has been thriving since 2016 and property prices have grown by 19.3% since 2014. Its 1.2 million-strong population is expected to grow so much over the next decade that nearly 100,000 new homes will be needed by 2030.
Rental yields in 2019 ranged from a very comfortable 4.4% – 5.3%; mostly from 1 and 2 bedroom apartments in the city centre. Demand for these kinds of properties is huge, meaning these yields should only improve.
With even more infrastructure investment planned for 2020, property prices in Birmingham are forecast to grow by 12.5% by 2022.
Property prices in Manchester have grown by 22.09% since 2019, and this trend is expected to continue. This Northern Powerhouse city has undergone huge transformations in recent years and is now an extremely desirable location for young professionals, families and students alike.
Predictions show that Manchester’s economic boom will continue to ripple out from the city centre, generating growth in areas such as Salford, Stockport and Bolton. Rental yields in the area will remain some of the UK’s highest – in 2019 these were an average of 5.55%.
Already one of the country’s fastest-growing economies, even more major investment in Manchester will boost it further. As the second-fastest growing city in the UK at 15% growth (just behind Birmingham). Manchester is a safe bet for property investors in 2020.
Liverpool Investment Opportunities 2020
Following a fantastic Q4 2018, price growth slowed somewhat in Liverpool during 2019. In 2020 the story looks different thanks to exciting investment developments, great career opportunities and increasing tenant demand. Property experts JLL forecast a 2% property price rise and 3.5% rental price rise in central Liverpool during 2020.
There are nearly £14 billion worth of regeneration projects either in progress or in the pipeline in Liverpool. The most exciting of these is the £5.5 billion Liverpool Waters redevelopment, which will transform Liverpool’s waterfront.
PropertyData have named Liverpool as one of the best-performing buy-to-let locations in the UK. The city’s L7 and L1 postcodes regularly achieve rental yields of 8.2% and 8% respectively.
Leeds property investment
The Leeds population is growing seven times faster than London’s, making it the fastest-growing population of any UK city outside Manchester. Housing development in Leeds has failed to keep up with this demand, causing a chronic under-supply.
Leeds is another city undergoing huge regeneration. Its South Bank project will double the size of Leeds city centre, developing a space equivalent to 350 football pitches in size. As one of the most significant projects in Leeds in over 100 years – and one of the largest city-centre initiatives in Europe – it will create over 35,000 jobs and 8,000 homes.
Property prices in Leeds have risen by 211% since 2011, and this growth isn’t forecast to slow down any time soon.
To find out more about our recommendations for a 2020 property investment, contact North Property Group now.