The buy-to-let market will continue to offer landlords fabulous opportunities in 2018, but identifying locations in which the largest returns are likely to be on offer will once again be the key to a great investment.
Property specialist Leaders has picked out the top five towns and cities it expects to deliver the greatest returns on investment over the next year.
The East Midlands is likely to be one of the hotspots when it comes to the buy-to-let market in 2018, with affordable purchase prices and sky-high tenant demand combining to form ideal conditions for investors. Nottingham is one of the UK’s largest cities, has a huge student population and is set to benefit from the HS2 development. West Bridgford and Bingham are set to remain popular with students and families alike.
Croydon has already witnessed significant house price rises in recent years, but average property values remain some way behind London as a whole and with new developments and investment continuing at pace the borough is expected to narrow the gap in 2018 and beyond. The introduction of Boxpark and potential arrival of a Westfield shopping centre will add value. While purchase prices may be large for some landlords, tenant demand is fierce and capital growth will ensure a highly successful investment.
Leaders believes house prices in Leicestershire are likely to grow by more than ten per cent in the next five years, meaning an investment in property in the county is sure to lead to a great return. Loughborough is well placed to capitalise on this trend, with a good range of housing available, a large local student population and high demand from all types of tenants.
Manchester is one of the UK’s fastest growing cities as a result of a number of regeneration projects. With a thriving city centre, the digital zone of the Northern Quarter and the brand new tech hub at Salford Quays, it is now home to a huge number of companies that are bringing jobs and professional tenants to the area. What’s more, the city boasts a six-figure student population, so there is no shortage of demand for rental properties. Yields are incredibly high – often above six per cent – in areas such as Fallowfield and Chorlton.
A lack of supply and high demand has pushed rental prices up in Birmingham and this is expected to continue in 2018 and beyond, making the city a lucrative place to invest. From stylish city centre apartments to large family homes in suburbs like Edgbaston, there is something for all types of landlord in the area. With more than a million people calling Birmingham home, landlords can invest with confidence in the local rental market and returns will continue to be great in the new year.
For more advice on investing in property contact your local Leaders branch.