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Top 5 Cities To Invest In In 2024

February 14, 2024

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Key Highlights

Investment Hotspots
  • The UK continues to be one of the best places to invest in property, with a growing population, strong job market, political stability, and high rental prices.
  • Most cities are worthwhile investments, with the top locations including London, Manchester, and Leeds.

The UK has long since been one of the best countries in the world for property investors. One of the UK’s timeless appeals for investors is that the market continues to have optimistic forecasts. Even the downward trends during the COVID-19 pandemic were short lived, with house and rental prices soon picking up again as the pandemic began to ease off. 

Other reasons why investors choose to purchase property in the UK includes the amount of investment going into regeneration projects, political stability, and continued population growth. While the country is small, it is home to almost 70 million people. While new developments are constantly underway, there is still a critical shortfall of housing – ensuring that there is always a constant demand.

All UK cities have a unique flair to them, with their own identities, offering a new experience wherever you go. Below are the top five cities in the UK to invest in in 2024. Read on for an overview of what makes these cities so unique and why they’re guaranteed to deliver profits for property investors.

London

The UK’s enigmatic and vibrant capital is at the top of any investor’s list – and for good reason. With a population of nearly 10 million – and still growing – London has a shortfall of housing, with plenty of regeneration hotspots and developments for investors to take advantage of. The wealthiest city in the UK and one of the wealthiest in the world, London’s economy generates over £526 billion GDP each year.

The city sees a large number of people move to the city, either permanently or for a few years, each year. Thousands of students, professionals, families, and others come to the city to settle, with a large proportion of these people opting to rent. London is also amidst a housing crisis, with not enough quality, liveable housing to meet demand – leaving a huge gap in the market for potential investors.

The city is world-famous and pulls in millions of visitors each year, who see London as a bucket list trip. People come from all over the country and the world to immerse themselves in London’s rich culture and history. The city is home to thousands of museums and galleries, most of which are free for visitors to enjoy. It has a wealth of restaurants, bars, pubs, and other eateries. Despite being a heavily industrialised and modern city, it is still teeming with nature, with plenty of parks for residents and visitors to relax and unwind in. Over 30 million people come to the city as tourists each year, presenting an attractive opportunity for investors looking specifically for developments for short term letting.

Leeds

Leeds has long since enjoyed a population incline, currently standing at almost 800,000 people, with a further combined 3 million from surrounding areas. While less of a tourist destination than others on this list, Leeds still benefits from a large number of people choosing to settle in the city each year. A lot of students come to study at the city’s esteemed, global universities and colleges each year, with many of them opting to remain in the city after graduation. Its economy is worth £64.6 billion, with a growing workforce of 1.37 million. Leeds City Council have predicted that the economy will grow by 21% over the next ten years.

It is teeming with galleries, exhibitions, museums, and events, ensuring that any resident or visitor can find something to do every day. There are plenty of green spaces to enjoy in Leeds – both inside and outside the city. Roundhay Park is only a short distance from the city centre and boasts 700 acres of green space and woodland, with two lakes, several gardens, and two playgrounds. Nestled in this sprawling green space is Tropical World – a small zoo attraction with a number of exciting animals such as meerkats, bats, and tropical birds. A range of activities, things to do, and a strong job market has made Leeds also a strong choice for young families.

Manchester

Manchester is seen as the capital of the north and the UK’s “second city”. Known for its stunning architecture and music scene, Manchester attracts thousands of people every year from all walks of life. It is the financial and tech hub of the north, and is home to thousands of brands and organisations, bringing hundreds of thousands of jobs into the city. It is also home to MediaCityUK, a media and communications hub that is home to some of the biggest employers and broadcasters in the country, including the BBC. 

Manchester has a track record of strong capital appreciation, a fantastic job market, some of the best universities in the world, a thriving local culture, and plenty of regeneration projects happening around the city. A notable example would be Manchester’s Victoria North, a long-forgotten mix of neighbourhoods north of the city centre that is currently being redeveloped with a blend of commercial, residential, and social spaces to meet Manchester’s constant demand for housing.

Greater Manchester is the second most populated city in the UK. Currently, Manchester has over 550,000 living in the city centre alone, with the city council projecting this figure to grow by 70,000 by the end of the decade. The city’s economy is worth over £62 billion — a figure expected to rise in coming years. Rental growth is predicted to grow by 14% by the end of 2026. House prices are also predicted to grow by an incredible 21% in the same period. Average rental yields are also strong for this eclectic northern city, hitting around 7%, making it more profitable than London for investors.

Liverpool

A city often unfairly overlooked, this creative and welcoming city has frequently appeared on “friendliest city” and top places to live by Reader’s Choice, Conde Nast, and more. Liverpool attracts millions of tourists each year – 31 million visited in 2022 alone – who come to revel in the city’s rich culture. Tourism is one of the biggest industries, with over 35,000 people are employed in the tourism industry in the city. Music and football are the biggest pulls to the city, with it being the birthplace of The Beatles and Liverpool and Everton Football Club. Tourists are also drawn into the city for its burgeoning restaurant culture and its close proximity to some of the UK’s best nature spots, such as Eryri National Park, the Lake District, and the Peak District. All of this makes it a viable option for property investors looking for properties for short term lets.

It’s not just tourists that feel a pull to Liverpool, with thousands of students coming in from all over the globe to study. The city is home to four universities and countless colleges, bringing in 50,000 students a year – 40% of which choose to stay after graduation. It is also popular with young families and professionals, attracted by cheaper rents. Liverpool can be seen as a commuter city, with plenty of people choosing to live there while commuting to Manchester, Chester, and beyond for work.

Extensive redevelopment and regeneration projects are taking place all over the city, from the waterfront to surrounding neighbourhoods. The city offers consistent and reliable income for investors with a potential for high yields, making it an attractive opportunity for those looking to expand their portfolios.

Birmingham

One of the most populous cities in the UK after Manchester and London, Birmingham offers a lot to potential investors. Average rental yields of 6%, an rapidly increasing population, and a lack of premium and luxury rentals within the city centre provide an attractive opportunity for investors.

Population trends in the city look positive, with more than half of the city’s students choosing to stay on to live and work. Upcoming regeneration projects like the Big City Plan, the Smithfield Masterplan, and more intend to revitalise the city centre, bringing countless permanent jobs along with it. The Big City Plan is a twenty year long plan to rejuvenate and expand the centre, bringing it into the 21st century. The city also saw investment of £778 million into it in advance of the Birmingham Commonwealth Games, which brought over one million visitors.

While more people opt to move to Birmingham and have families, demand for housing is sure to increase, with prices rising along with it. The city brings strong rental yields and is predicted for future growth, especially as the country’s overall population continues to grow. The city’s growth continues to grow on a small but steady incline, with reports from Irwin Mitchell and CEBR predicted an average annual growth of 2.3%.

Summary

Here at North Property Group, our experienced team can help you find the best investment opportunities in all these cities and more. We have a deep and rich understanding of the UK’s property market and can offer expert guidance so you can make the most out of your investment. Call us today to unlock the investment potential in the UK.

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