The best place to invest in the UK

investuk

The home property prices in the North of England are most affordable, especially in the North East (Manchester and Liverpool). Despite a continuing increases in house prices, Manchester and Liverpool can provide high rental yields and the potential for capital growth.

On the other hand, properties located in the south of the England, especially in London is the least affordable. Investing in the South East of England can generate high capital gains where London itself generates an annualised return of 7.9%. Due to the high property prices, the rental yield in the South performs rather poorly.

It is therefore safer to invest in the North where house prices are relatively low with high rental yield, rather than take a risk with property investments in the South East with its high prices and low yields.

The Northern Powerhouse

northern powerhouse.jpg

The 2010-15 coalition government and 2015-2017 Conservative government is driving a Northern Powerhouse project to boost the economic growth in the North of England,
particularly in the “Core Cities” of Manchester, Liverpool, Leeds, Sheffield, Hull and Newcastle.
https://www.bbc.com/news/magazine-32720462
https://en.wikipedia.org/wiki/Northern_Powerhouse
https://www.investinmanchester.com/great-campaign

With this Northern Powerhouse initiative spanning many years, it is expected that there will be great demand for housing – companies relocating (Salford’s MediaCity UK became the headquarters of BBC Sport and CBBC in 2011) with people migrating for jobs from
the South.

Here is why the top 2 places for property investment is Manchester followed by Liverpool:

Manchester:

manchester.jpg

Manchester is expected to be at the forefront of the Northern Powerhouse initiative.
In fact, Manchester is the fastest growing UK economy with diverse growth.

Here are Manchester’s top four forecast growth sectors over the next ten years
(2016–26) in terms of jobs and GVA (measure of the value of goods and services produced):
● Construction
● Business, financial and professional services
● Cultural, creative and digital
● Science, research and development

14 Billion pounds of strategic infrastructure investment projects has been poured into
Manchester:
● Spinningfields | £1.5 billion regeneration project (completed)
● MediaCity UK | £200 million+, 200 acre (P1 completed)
● Northern Hub | £5.9 billion rail improvements (completed)
● Airport City | £800 million expansion of Manchester Airport enterprise zone (ongoing)
● Atlantic Gateway | £2.5 billion port and canal project (ongoing)
● Smart Motorways | £1.2 billion road improvements (ongoing)
● HS2 | £50 billion national high-speed rail link (ongoing)

Manchester is the UK’s Second Retail Capital – shopping in Manchester City Centre generates over £910 million each year – second only to London’s Oxford Street. It is the Cultural Capital where Manchester Arena is the second busiest live venue arena in the world.

Manchester is the largest student campus in Europe, with 5 major universities with 100,000 students (30,000 Chinese). University of Manchester (ranked 8th in the UK has 36% international students.

Manchester has good inter-connectivity with the Manchester Metrolink (largest metro system in the UK carrying 38 million passengers per year), the HS2 national high speed rail link: http://www.railjournal.com/index.php/high-speed/manchester-sets-out-hs2-and-northern-powerhouse-rail-growth-strategy.html and the Manchester International
Airport (busiest Airport outside London with direct flights to many international destinations.

In summary, Manchester has the fastest growing economy and fastest growing population.
https://www.theguardian.com/business/2017/oct/16/house-prices-signs-of-new-north-south-divide-in-uk-market-emerge
https://www.bbc.com/news/business-36656134

Manchester Supply vs.Demand: 55,000 new homes needed by 2027 but the actual
number built each year is 1,800 – twice as severe as the UK as a whole. Manchester has a 7-9% year-on-year house price increase –  the fastest in the UK.

Based on age demographics Manchester has a relatively young population as compared with the rest of the UK where this age group are more likely to rent.

Manchester is predicted to experience a big growth in house prices.

Liverpool:

liverpool

Liverpool low property prices, despite on the upward trend is still affordable.
Liverpool comes in second and low of the best places to invest in property to achieve high rental yields.

A 2-bedroom property costs RM468,000: https://chartanah.com/wishing-well-liverpool-uk/

Liverpool still has a huge student population (50,000) which means there is always a requirement for accommodation.

Liverpool is undergoing several regeneration schemes on the Liverpool docks and upon completion, is expected to raise house prices in the area.

Like Manchester, Liverpool property prices are predicted to experience the biggest growth in house prices and investors are therefore advised to invest now.

Sheffield:

sheffield

Besides Manchester and Liverpool being the top two property investment destinations, we should not forget Sheffield. Sheffield has a sizeable student population (60k plus) which is expected to grow between 15-20% over the next five years. The demand for student accommodation is set to grow, especially when it is difficult to get the rather limited university-provided accommodation.

To generate a steady income with lower risk, property investors should consider places such as Manchester, Liverpool and Sheffield.

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