UK Buy to let predictions for 2018

Despite a 2017 that kept buyers on their toes, investing in UK buy-to-let property is more popular than ever. We’ve rounded up what the experts are saying will happen to the buy-to-let industry in 2018.

Manchester

In Manchester, the best opportunities for buy-to-let property investors are in the outskirts of the city centre. Regenerated districts offer low entry prices and are perennially popular with students and workers.

Manchester’s population is expected to grow by a fifth by 2025, adding 625,000 residents to the existing population of 2.5 million. With current and developing housing stock, it’s expected there will be a shortfall of 40,000 homes. This presents a unique opportunity for property investors seeking guaranteed rental income as well as a solid exit strategy down the line. Property prices on the outskirts of Manchester centre are priced lower than central property, another advantage for investors.

Liverpool

Low price points and strong growth potential continue to attract buy-to-let investors in Liverpool. Ten years after its European Capital of Culture accolade, Liverpool is continuing its upward trajectory. Its £30 billion economy is fuelled by redevelopment, a growing population and the increasing number of large businesses moving their offices into the city.

Liverpool’s buoyant housing market offers a great deal of opportunity for investors, putting the city on buyers’ watchlists.


Birmingham

Birmingham’s buy-to-let market will continue to grow in 2018, sending it to the forefront of the country. Although the UK’s second-largest city is often overlooked, Birmingham has a number of draws for first-time investors. Its young population, bolstered by the thousands of graduates it produces each year, have created a young and dynamic workforce and fostered an entrepreneurial spirit. The city is now fostering a reputation for innovation and culture, elements that attract young professional residents. This demographic is an investor’s key target for reliable, long-term tenants.

London

Investors can expect a sluggish performance from London this year - at least in the city centre, where prices are set to drop. The capital’s property slowed down in 2017, and while the long-term predictions remain positive, slowing prices might be felt - especially with more interest rate hikes.

However, outside of the overpriced central city there are opportunities to be found. Regenerated areas offer lower price points for property investors, and London’s young professionals tend to favour the modern, new developments found in these up-and-coming areas. Other areas set to benefit from Crossrail, which is set to open later in the year, are also worth keeping an eye on.

Newcastle

Newcastle’s fortunes are changing, and 2018 might well thrust this northern city into the spotlight. Newcastle has been growing in size and economic status in the last two years, and with a higher-than-average economic activity rate, growing property prices and increasing rates of local investment mean the city is attracting interest from domestic and foreign investors.

If you’d like to know more about buy-to-let property in the United Kingdom, call or email us.


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