To be successful in the property market it always helps to be ahead of the curve whenever possible. Buying property in the right place at the right time can be the difference between success and failure as a property investor, so knowing where’s hot and where’s not can increase your returns significantly.
So, with this in mind, what can we expect from 2016? Where is the smart money going to go as we move into the second half of the decade? We take a look at some of the places that we think will lead the way in the New Year:
While many will still be concentrating on London and the southeast, those who look a little further afield may find a few hidden gems during their search. Glasgow is already performing well, with 3 of the top 10 postcodes for rental yields in the UK. However, despite being well and truly on the buy-to-let investors map already, we think that there are still plenty of great deals to be discovered in the Scottish city.
Bradford has some great local schools and a vibrant city centre, both of which are attracting young couples to the area in their droves. A great cultural mix in town and all of the benefits of having amazing countryside right on your doorstep make Bradford a very attractive place to live. Further to this, high demand for university accommodation in Bradford means that rental yields of properties close to campus can be as high as 10%, with this looking set to continue into 2016.
Manor Park, London
With Crossrail set for completion in 2018, Manor Park is one of the areas in East London that will undoubtedly benefit from the improved infrastructure that this will bring. Unlike much of the rest of the surrounding area, Manor Park remains surprisingly affordable, which will surely catch the eye of canny investors with money to spend in the capital.
Leeds is now widely regarded as the UK’s second financial city behind London. Young professionals from across the north are now choosing to settle here rather than make the trip down south, so the rental market is becoming stronger with every passing month. The University of Leeds also adds to the rental market’s strength too, with both local and international students constantly on the lookout for decent digs. Worries about renting to students can be overcome by looking into the benefits of a landlord insurance policy which will give you the necessary peace of mind to allow you to move forward.
Milton Keynes picked up a rather undeserved reputation since being founded in 1967. Now firmly established, this part of the UK is starting to prove worthy of more than just a cursory glance by investors from the rest of the country. Over £1bn has been made here in the last decade and the property market is starting to reflect the change in fortune too.
Kingston upon Hull
Extraordinarily low property prices make Kingston upon Hull well worth a look in 2016. Rental yields of over 7% can still be expected from this part of the northeast, thanks largely to growing popularity of the University of Hull and the amount of first time buyers who are unable to buy property so therefore look to the rental market for their homes.