Despite the turbulent state of the UK housing market and rocketing rates and house prices, investing in property can still be an extremely lucrative enterprise, especially if it’s done strategically and with profit in mind. While there is a range of factors to take into account when investing in property, location is perhaps the most crucial. Where you choose to buy can directly affect your margins later down the line, but where are the most lucrative areas to invest in property in the UK?
How area influences property value – With average house prices in England rising by 10.9% to £315,000 (and average increases of 5.5% reported in Scotland and 10.7% in Wales and Northern Ireland), location is still a key factor if you’re looking to bag a bargain. Although average house prices may have risen in recent years, there’s still a dramatic disparity in pricing across the UK. A range of factors can influence property value including local crime statistics, average regional salaries, proximity to amenities, transport links, the local job market, the quality and density of schools and the level of supply and demand. In recent years, we’ve also seen more environmental factors like air quality thrown into the mix, with more businesses actively providing air pollution solutions to improve air quality, in turn raising local property rates. If you’re looking to buy property with profit in mind, consider investing in one of these potentially lucrative locations in the UK:
Milton Keynes, Buckinghamshire – Located in the Buckinghamshire countryside just 30 minutes from London Euston, Milton Keynes has become a hotspot for commuters in recent years. With more Londoners looking to get out of The Smoke amidst rising property prices in the capital and similar hikes seen in neighbouring commuter havens like St Albans and Luton, Milton Keynes has become an increasingly attractive option. With good transport connections via the M1, fast trains from Milton Keynes Central and easy access to Luton Airport, the average price of a terraced or semi-detached house in the town currently stands at £286,786 and £322,334 respectively.
Birmingham, West Midlands – While it may be best known as the birthplace of heavy metal and the home of a 100-mile canal network, there’s more to the second city than meets the eye. As typified by the Commonwealth Games 2022, Birmingham is currently undergoing a renaissance of regeneration of growth that’s attracting plenty of prospective property investors. It’s also one of the cheapest big cities in the UK, with an average property price of £202,400 – you could get more bang for your buck in Brum!
Leeds, West Yorkshire – With a relatively low average property price of £205,600, an 800,000 population and 73% of households renting their properties, this West Yorkshire gem could be a real money spinner for property investors. While the average city-wide rental yield stands at 5.27%, you could yield as much as 7.72% or 7.43% from properties in the LS1 and LS6 postcodes.
Bracknell, Berkshire – Located within the M4 corridor area in Berkshire, Bracknell is an exceedingly popular choice with commuters and investors due to its close proximity to Reading, Slough and London – it’s conveniently placed for easy access across the South East of England. Average property prices are also considerably lower than neighbouring towns like Maidenhead, Wokingham and Windsor, clocking in at £330,634.
