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Property Investment Guides: UK

Do you need help finding the best property investment locations in the UK?

With house prices and rents expected to increase over the course of the next five years and beyond, 2023 is the perfect year to expand your property portfolio. With this in mind, we have taken a look at some of the UK’s leading buy-to-let locations to help you decide where your next investment will be.

Below you will find all of the property investment advice you need and information you need for locations such as Manchester, Liverpool and Sheffield. If there is somewhere specific we haven’t talked about please do not hesitate to get in touch, our team of specialist Property Consultants will be happy to help.

8.9%

House prices are forecast to increase by 8.9% in the 2023-23 period (JLL, 2022)

15.9%

Rents are forecast to increase by 15.9% in the 2023-27 period (JLL, 2022)

What is an investment property?

Put simply, an investment property is a property either purchased at a low price with the intention of being renovated and sold or the purchase of a property with the intention of renting it out to the Private Rented Sector (PRS) instead of living there as an owner-occupier.

Why invest in UK properties?

Property has always been one of the most popular asset classes to invest in as it is a tangible product that the investor can have full control over. Property is also most likely to experience steady growth in value over time. Additionally, there is a huge demand for rental accommodation in the UK and more people are renting for longer periods of their lives, making UK property investment an incredibly lucrative investment option.

Benefits of property investment

Investing in property is an excellent way to diversify your income whilst also protecting your wealth. The UK market in particular has seen exponential growth in recent times and continues to remain a strong place to invest.

A guide to the best property investment locations in the UK

There are so many factors to consider when it comes to investing in UK property, one of the main ones being where you want to invest. With this in mind, we’ve put together a selection of property investment guides to look at the best buy-to-let areas in the UK.

Read our property investment guide on the best buy to let areas in the UK

Best areas for property investment in the UK

The buy-to-let investment market is booming at the moment. With house prices and rents expected to increase year-on-year for the next five years and beyond, 2023 is the perfect year to expand your property portfolio. With this in mind, we’ve created a guide to look at the best areas for buy-to-let in the UK.
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Manchester Property Investment with Knight Knox

Manchester Property Investment Guide

Manchester is one of the most exciting places to live and work today, with many young professionals flocking to the city for excellent employment prospects. Experiencing the fastest growth outside of the capital and leading the way in property investment, Manchester has a very promising future ahead.
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Property Investment Advice - best areas for buy to let in the UK

Sheffield Property Investment Guide

Sheffield is known around the world for its industrial prowess and a highly skilled workforce which is at the centre of a booming business sector. Residents of the city enjoy an enviable lifestyle and impressive job opportunities in the South Yorkshire city as it continues to prove itself as a prime buy to let location.
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Read the Liverpool property investment guide from Knight Knox.

Liverpool Property Investment Guide

Located on the River Mersey in the North West of England, Liverpool is famous around the world as a shipping port, capital of culture and a national buy to let property hotspot that has been transformed in the past decade by significant public and private investment and looks set to continue in this vein in the coming years.
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How much can you make from property investment?

How long is a piece of string? On the face of things, how much you make from property investment depends largely on how much rent you’ll charge, however, there are so many other factors that come together to make the potential earnings almost infinite. Whilst you predominantly earn through rental income, you can also make money through capital appreciation when re-selling your property. This sale and/or saving up rental income can allow investors to diversify and expand their portfolio to create an extremely varied, income-generating property portfolio. So really, the possibilities are endless.

How much do you need to get started in property investment?

The price of getting started in property investment varies depending on your own personal investment strategy as well as the location in which you invest. For example, student properties are, on average, much cheaper than residential properties and make for a good entry point. Whilst residential properties are more expensive, there are opportunities for lower costs in cheaper markets or even by buying off-plan. The best thing to do would be to get in touch with a property consultant and talk through your current financial status and goals for investing in property.

Imperial Quarter Living Room

Property investment types

Choosing an investment type is dependent on each individual investor as they all come with their positives. New-build city centre apartments tend to receive higher rental incomes when compared to suburban properties, however, the latter can often increase in price at a quicker rate. Student property, on the other hand, offers much higher rental yields, however, there is not usually a markup on these types of properties. In the end, it really comes down to an investor’s individual goals. Take a look at our comparison of the two here.

Risks of property investment

Like all investment ventures, property investment has a few risks that you will need to consider before you invest. First and foremost, the housing market is not protected against external negative factors – for example, if there was a financial crash, this would have a huge impact on the property market and the value of your property may fall. You will also need to rely on high demand from tenants to receive a steady income.

What to look for in an investment property

Your personal investment strategy will determine what you need to look for in an investment property, so before deciding, you need to do some thorough research. You will need to research; what areas you would need to invest in to get the best returns, what kind of tenants you would want and how you would manage your properties – whether you manage them yourself or you enlist a management company. Once you have decided on all of these factors, you must then look for an investment property that meets these needs.

Property investment FAQs

What are the costs associated with property investment?

There is no definitive answer to this question as there are several factors that you will need to consider such as whether you want to manage your property yourself, whether you will have mortgage repayments and whether you’re buying a freehold or leasehold. However, there are some fixed costs that you can definitely expect – these include Stamp Duty for residential properties and solicitor’s fees. It is also advisable to put aside contingency money for maintenance on your property and void periods.

What is a NET yield and how do I calculate it?

Yields are the return on investment per year expressed as a percentage. A NET yield is the value when all the associated costs have been deducted. As an example, a property could be achieving annual rents of £10,000 (gross rental returns) but when ancillary costs are deducted like ground rent and service charges, the actual rent is more likely to be around £8,000 (NET rental returns).

What does it mean by ‘assured NET yields’?

Assured NET yields are a rental guarantee that developers offer landlords for a specified fixed period. This means that rental income will be guaranteed on the property for the specified period. A number of our current investment opportunities are offering NET yields at the moment. Take a look through them all here.

Current property investment opportunities

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    St Mary's - Barnsley

    St Mary’s

    Prices from:
    £199,950
    Property type
    Residential
    Location
    Barnsley

    Investment Highlight

    St Mary's offers a 25-year lease with 9.1% yields and annual inflation-linked rent increases

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    Sandy Lanes

    Prices from:
    £275,000
    Property type
    Residential
    Location
    Isle of Wight

    Investment Highlight

    Sandy Lanes is a luxury holiday resort in the Isle of Wight offering a guaranteed 50% ROI

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    Image of Bradford city centre, the home of Chapel Street

    Chapel Street

    Prices from:
    £152,942
    Property type
    Residential
    Location
    Bradford

    Investment Highlight

    Chapel Street offers a 25-year lease with 8.5% yields and annual CPI increases

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    Alexandra Tower

    Alexandra Tower

    Prices from:
    £213,500
    Property type
    Residential
    Location
    Liverpool

    Investment Highlight

    Alexandra Tower offers luxury Liverpool living with waterfront views

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    Landal Barnsoul

    Prices from:
    £84,950
    Property type
    Residential
    Location
    Dumfries and Galloway

    Investment Highlight

    Landal Barnsoul offers investors a guaranteed 50% increase on their investment in 5 years

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    Axiom

    Prices from:
    £79,999
    Property type
    Student
    Location
    Stoke-On-Trent

    Investment Highlight

    8% guaranteed returns for 3 years at Axiom

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We have properties available across the UK’s leading buy to let locations, including Manchester, Liverpool, Sheffield and more.