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What Cities Are Causing A Bang When It Comes To Property Investment?

Its not just fireworks making noise this November. For those of us immersed in property investment, there are a number or property hot-spots that are making a big bang this month.

Here at BellPepper Investments, Location Spy has been busy crunching the numbers for a range of UK locations. Delving deep into what makes a good location to invest, here are our some of the cities attracting the attention.

1) Nottingham

Often overlooked for the bright lights of London, Birmingham and Manchester, Nottingham actually offers some of the highest average capital growth and a hotspot for buy-to-let (according to the Office of National Statistics).

After too long living under the radar, Nottingham now represents a key investment area and looks to have a strong long-term yield growth. Two major universities and a strong graduate retention presents a huge tenant demand, whilst the estimated 10,000 new jobs expected to be generated in the local area by 2025 will continue to increase the need for property in the area.

According to Location Spy, the average five year return on capital sits around 17.58% with the higher end returns coming from apartments closer to the city centre (e.g. NG1), whilst average gross yield sits around 4.76%.

2) Glasgow

Snapping at the heels of its popular neighbour Edinburgh, Glasgow is offering the strongest yield/growth combination. It comes as no surprise to those in the know as the economic growth rate is, at 4.4%, the largest of all the cities, after London.

Most areas within Glasgow are reporting five year return on capital above 18.5% and gross yields of over 6.1% (Location Spy report), and this growth and yield is expected to remain steady.

Over 5000 new foreign students each year arrive in the Scottish city and along with the estimated 100,000 additional residents, they will require new property developments before 2026 – based on current and estimated future demands.

3) Liverpool

With a city area population of over 467,000, and a £5.5 billion infrastructure and development plan underway for Liverpool’s waterfront, it is no surprise to Location Spy that Liverpool is reported as a property investment hotspot.

A high yield of around 5-6%, and strong growth – property prices in Liverpool are predicted to rise by 28% over the next four years (JLL, 2021) – has put this Northern city on the same growth level as Manchester.

Liverpool is probably the city making the biggest bang amongst property investors, with many reporting Liverpool to top the list of best places to invest in 2022.

Want to know more about these locations, or to find out more about your chosen investment location?

Location Spy is the place to start. Request your free reports today.

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