New year, new property may be the mantra of some in these first few days of 2017. The beginning of the year seems an exciting time, full of opportunities to step into the property market for the very first time. However, you must also consider and question whether or not this year will be a good climate for property investment.
So, what benefits will you find for investing in property in the 2017 period?
Predictions see an overall increase in the rate for rental properties throughout the year and especially through August. This is a result of more people searching for rental properties in cities both close to work and more local amenities than a larger city has to offer, results in a great opportunity for investment in order to catch these young professionals as tenants.
Of course, higher rates are bad news for renters. But, for investors, this means a quicker return on your investment in selected areas. It is also likely that rental prices will also continue to rise throughout 2017 and into 2018. You must remember, however, that this is all about location, location, location.
Rental prices may be on the rise nationwide, but some areas will see a much higher increase than others. If you want to see a larger return, then you need to choose a location that is seeing the largest increase in rates.
Locations to Invest In
When location is so important, you need to consider where to invest carefully. So, if you are looking to invest in 2017 then where should you be looking to invest?
Northern cities are increasingly becoming a great alternative for those wishing to live away from London, but still maintain the metropolitan way of life. One such city that people are flocking to is Manchester. It is a city that is currently receiving great investment as a northern alternative to the capital, which in turn is attracting a high number of young professionals to jobs in the city.
For investors, this is a prime location also. It lacks the steeper prices that some of London’s properties possess, whilst returning higher yields in rent in comparison to the costs of maintaining the property.
The property market in Leeds has increased by around 5% in price over 2016. However, with the average house costing around £150,000 this is still a prime investment location. A relatively smaller investment will allow you to gain the money back more quickly and perhaps even invest it further.
Leeds also has one of the largest student populations in the UK. So, you may find that investing in student property in the city gains a great return in comparison to the small house prices.
As the Capital of Culture in 2017, Hull is a rising star in the property investment world. With recent investments coinciding with this many jobs are being created in the area, increasing also the number of people renting and wanting to live in the UK’s former ‘worst place to live’. This is a city which holds a potentially high yield and a location that investors should consider.
Of course, it is impossible to not consider the capital city when looking at 2017 property investments. London is a constantly buzzing machine and the property market is no different. Being able to identify, before everyone else, the areas that are on the cusp of generating a larger buzz is a sought-after skill in the UK’s busiest city.
So, what are areas will be up and coming in 2017?
An area around Hyde Park, it has often been overlooked in favour of Mayfair or the like. But, 2017 will see an end to that sad tale with a number of new developments on the horizon. Now is the time to invest in the area, before prices start to rise to the same levels of the neighbouring areas of London. Certainly, the prime location is the best reason to take advantage of the relative anonymity of this area whilst you still have the chance.
A huge regeneration effort has been the trademark of the Clerkenwell area over the past few years. Something that does not appear to be changing anytime soon. A popular area for creatives, this could be an area where early investment sees a huge return profit – either as a rental profit or from resale further down the line. If you wish to invest in areas such as Soho but find the prices too steep, then this may be the perfect alternative.
West Drayton is an area that will see a significant rise in residents following the completion of the Crossrail project in 2018. There has also been a renewed effort to create more affordable housing in the area – with prices as low as £200k – which make it a prime London investment for the coming years.
There are many areas throughout the country that you may find it worthwhile investing in. The coming year certainly seems to promise a return on that investment, provided that you choose an area with a high potential yield and that is gaining popularity.
If you need more advice, or want to know how Prideview can help you, contact us today to speak to our team.