Property investment in the UK is an exciting path to take mainly due to its high rewarding potential in the long-term. Even from a non-materialistic perspective, investing in property is extremely stimulating, dynamic, and often attracts individuals with a business mindset. For those with no experience in the field, investing may seem like a piece of cake but it is by no means as simple as it may sound.
In order to build a successful property investment portfolio investors need to keep an eye on different markets, have a clear understanding of their investment capabilities and willingness to undertake risk, a realistic expectation for the return on property investment, and be aware a number of other factors. Some investors prefer to build their investment portfolios solo while others work in cooperation with professional UK property consultants that guide investors and help them make the best decisions.
Investing in property in the UK has significantly changed in recent years and has taken a turn, especially with Brexit on its way. If you are an investor interested in buy-to-let properties it may be worth exploring the best places in the UK to invest in this property type in 2019.
Why invest in buy-to-let properties?
Property is one of the safest and long-term investments available to investors. Because of this it has maintained its position of being highly interesting to investors and provides high financial rewards. Buy-to-let properties are especially lucrative and provide a number of benefits. For instance, renting out property is a good way of receiving a steady income every month. It is also a perfect way to cover mortgage expenses by using the monthly rental fees received by tenants. Renting homes in the UK is a popular trend due to the high expense of buying a house in a number of regions such as London; therefore investors in buy-to-let properties are likely to have low vacancy periods.
If you have made the decision to start building your portfolio of buy-to-let investments in the UK the next step is to make the right decision regarding your investments. Where should you start from?
Let’s look at the hotspots for buy-to-let property investments in the UK for 2019!
Best UK hotspots for buy-to-let investments in 2019
Brexit casts a shadow over the property market in the UK and experts to find it more and more difficult to forecast its influence on housing prices and market shifts. However, there are a few hotspots in the UK that are likely to be profitable choices for buy-to-let investments in 2019.
- London
UK’s capital city will still be an attractive investment destination for investors looking to maximize profit in 2019. In terms of buy-to-let properties, the city’s forecasts reveal that a number of areas are likely to bring significant returns for investors. For instance, Leyton in East London attracts a relatively young rental population thanks to its lively surroundings and ease of access. The Olympic site in Stratford is another reason for the interest in the area.
Hornsey in North London is another tempting location for buy-to-let investments as the house prices are lower in contrast to other London areas and the region is popular for renting. The area provides a range of conversions and brand new developments as investment options.
In addition, Hayes in West London is likely to attract a number of your professionals who will show interest in renting in the region thanks to the development of the Crossrail in 2019, which will provide transport to Bond Street for no more than 20 minutes, making the area extremely easy for commuting.
- Cardiff
Cardiff is an extremely popular student destination in Wales and investors in buy-to-let properties in the city are likely to enjoy busy households and avoid vacant periods. The demand in Cardiff for renting properties is likely to remain high making the city an attractive region for property investors. Cardiff University and Cardiff Metropolitan University attract high numbers of students to the city every year, in addition to the University of South Wales. Furthermore, Cardiff ranks as the second most affordable city in the UK to attend university. For investors in buy-to-let, this translates into money-making opportunities as students commonly rent out properties rather than making long-term investments.
- Birmingham
The second biggest city in the UK may have experienced periods of slow property price growth but it now seems to be recovering and attracting more people. Birmingham is an extremely popular destination for people to relocate from London due to the excellent transport provided between the two cities, with easy links. Furthermore, the local economy stimulates more and more young people to enjoy the benefits of the city. In addition to a stable economy, the activity of distribution warehouses in the surrounding regions is also attracting individuals taking part in the business to relocate to Birmingham and rent properties.
- Nottingham
Nottingham is another city with a high number of students looking to experience what the city has to offer by renting properties in the central areas. Nottingham is located in the East Midlands, a region whose property market demonstrated substantial growth rate when compared to the rest of the country in 2018. The best part of investing in property in Nottingham is that the price for buying a house is relatively low while renting prices maintain a high standard, leading to a better return for investors. The city is preparing to undergo significant developments and improvements, which is expected to increase tenant demand further.
- Liverpool
Liverpool has shown significant growth in its property market over the past years. Since 2012 the city has recorded a house pricing jump of more than 16%, with the average house price reaching £148,031. In addition, the city offers its residents tempting cultural experiences, qualified educational institutions such as the University of Liverpool and John Moores University, and work opportunities. The business community of Liverpool is stable and thriving, increasing the demand for renting properties. Buy-to-let investments are a profitable idea in Liverpool and investors are likely to be rewarded with significant financial returns on their investments in 2019.
Property investments in the UK are expected to remain a profitable endeavor in 2019. There is a range of property types to choose from but buy-to-let properties are expected to hold their position in the list among the most profitable. If you are looking to make a buy-to-let investment this year in Britain we hope that this list gives a useful outlook of the places to start from.
