Liverpool and Manchester have been named as two of the most affordable up-and-coming property hotspots in the UK, potentially making them ideal for buy-to-let investors.
A study by Which? revealed the towns and cities where property prices have increased by the largest amount in the last year while remaining under the national average of £200,000.
Central Liverpool is an area that is currently seeing a change in fortunes, with properties in the L1 postcode district rising in value by 41.2 per cent in the last 12 months. A typical home in this area cost £85,000 in November 2014, but had increased to £120,000 by November 2015.
It was identified as the number one hotspot when both house price rises and affordability were taken into account, closely followed by the M12 district of Manchester in fifth place.
Emma Wells, lettings director for the north-west at Leaders, says: “For a landlord, investing in an up-and-coming area can be a shrewd move, as the initial cost of buying a property is relatively low and it could rise in value very quickly.
“Liverpool and Manchester are both undergoing extensive redevelopment and new high-quality housing is being constructed at a rapid rate. As such, it is no surprise they have been picked out as two cities with plenty to offer investors.
“What’s more, both Liverpool and Manchester are currently witnessing extremely high levels of tenant demand, so landlords can invest with confidence that their property will be filled by a quality tenant.”
Conwy (LL27), Bradford (BD1) and Salford (M5) also made the top five and provide attractive and affordable investment opportunities.
There are also still some spots inside the M25 that offer investors a chance to purchase a property for less than the national average. For instance, Bexley was named by Which? as having plenty of potential to improve and still offers an average house price of £191,500.
For more information on investing in property in the UK, please contact your local Leaders branch for expert advice and support.