The Best Areas to Invest in Property in the North of the UK in 2024
This article was updated on Fri 26 Jan 2024
As an investor, researching the best areas to invest in property is essential to ensure you make the most out of your investment. While London has seemingly led the way in previous years, a clear regeneration of the north has paved the way for a new world of investment.
The north of England not only showcases beautiful scenery and historical hotspots with plenty of tourist attractions, it also makes for a brilliant investment opportunity where low prices and high rental yields are concerned.
With numerous property developments upcoming in places that are thriving in nightlife, leisure and work, the demand for property in the north is at an all-time high. Considering the UK experienced a painful two years due to Covid-19, the property market is growing from strength to strength as the north continues to offer some of the most impressive rental returns in the UK.
If you are looking for secure investments in 2022, here are the best areas to invest in property in the north of the UK right now.
Manchester
Manchester is like no other city in the UK. The population and economy have grown effortlessly in the past few years and show clear signs of continuation into the future. Rental yields currently average at 5.5% across Manchester postcodes, creating a solid investment base for first-time investors especially.
An influx of young professionals flock to the city each year to indulge in the second-largest regional UK economy and take advantage of the wide range of options available. The city’s impressive universities also encourage plenty of students (100,000 to be precise), to come and experience what the Northern Powerhouse has to offer as regeneration lingers and developments advance.
For Manchester, the future is looking extremely bright. According to Savills, property prices in the north west region are estimated to increase by 28% between 2021 to 2025. And with the Great North Rail project expected to be put in place this year, which will allow 40,000 more passengers to travel throughout cities in the north, Manchester is ahead of the game when it comes to the best areas to invest in property.
You can take a look at our latest Manchester developments here!
Sheffield
Properties close to nature, such as the Peak District National Park near Sheffield, make for the perfect investment – especially since the pandemic made people realise the importance of green spaces after lockdown. Formerly known as an industrial city, Sheffield is now one of the greenest cities in the UK, making it a popular location for those people seeking a less urbanised location.
Currently, the tourism sector brings £1.35b to the local economy. This incredible location has many museums and galleries to enjoy all across the city, including the Millennium Gallery, which is still one of the most visited tourist hotspots in the north of England.
With a 20-year economic strategy underway, South Yorkshire’s economy will eventually boost by £7.6bn, boosting Sheffield’s desirability to live and invest in. There are also plans to possibly connect Sheffield to Manchester via a trans-pennine tunnel, which will increase employment opportunities for all.
In addition to career opportunities, Sheffield is home to two popular universities, with over 60,000 students residing in the city. This number is estimated to rise to 100,000 by 2039, creating demand for accommodation.
The mayor of the Sheffield City Region, Dan Jarvis, has publicly announced that he aims to improve the health of residents and reach net zero emissions by 2040. With property prices increasing by 37.19% in the last decade, the city offers brilliant investment possibilities.
Liverpool
Liverpool has a fascinating heritage of culture, with a musical history that has set the tone for many artists today. As one of the largest cities in the UK, Liverpool has become the place to be for start-up businesses looking to grow in the world of digital technology.
As it stands, Liverpool property investment is currently one of the most affordable locations throughout the UK. According to a recent JLL’ report, the average house prices Liverpool offers are set to rise by 21% by 2026, with an average rental yield of around 6.3%. Some areas of the city bring in yields as high as 10%. Home to over 60,000 students, it’s no wonder that 75% of the vibrant city’s population is aged 17-29, a popular age range of renters.
It’s believed that the northern hotspot’s regeneration of exciting urban areas and a dedicated focus on honouring Liverpool’s industrial history has caused property prices to rise 20.6% in the five years leading up to 2021. JLL expects house prices to increase by 21.1% during the period of 2022 to 2026.
A £5bn regeneration plan for the waterfront will not only boost tourism but also create over 17,000 jobs. This will encourage many investors to get their foot through the door and experience Liverpool for themselves.
Download our Liverpool property guide today here!
The northern cities are taking over – why London didn’t make the cut
While the capital is still thriving in its own right, its reputation as one of the most expensive cities in the world for purchasing property is a huge factor in deciding between investing in the north and the south.
The north allows newcomers to invest comfortably in a realistic investment plan. Instead of purchasing one London property, you could invest in two to three properties across Manchester, Sheffield and Liverpool.
Whether you are a first-time investor or looking to build on an established portfolio, Knight Knox will have the perfect property for you. Get in touch with us today to find out more.
