Buy-to-let investors might find they enjoy the greatest returns of all if they purchase properties in Southampton and Brighton over the coming months and years.
New research by Rightmove has found average house prices in England and Wales are set to increase by 30 per cent over the next five years, with Southampton and Brighton among the locations where the greatest expansion is expected.
Indeed, the Hampshire city is predicted to witness a 42.9 per cent hike in house prices by 2019, making it the most lucrative market in the country. In Brighton, growth of 40.9 per cent is forecast, putting the seaside resort third in the table.
The south coast cities are some way ahead of London, which is widely regarded as one of the most booming property markets not only in the UK, but in Europe. The capital is set to enjoy a 33 per cent rise in house prices in the same period.
On a regional basis, the south-east was identified as the top place to buy a property with a view to making a profit on it in the next five years. Overall, prices are predicted to rise by 37.3 per cent by 2019, compared with a national average of 30.2 per cent.
The research highlighted areas that are within commuting distance of London are likely to witness the sharpest spikes in property values in the near future.
People who are thinking of making a buy-to-let investment should bear this in mind. While rental income and yield is clearly of substantial importance, nobody should overlook or underestimate capital appreciation, as this can deliver a huge return in a relatively short period of time.
In comparison with the current low interest rates on offer from banks and building societies, the chance to secure an investment that returns in excess of 30 per cent inside five years is one that should be grasped.
If you wish to receive free, impartial advice from experienced and knowledgeable buy-to-let experts, please visit your nearest Leaders branch today.