Where should you invest in property?

Property can prove to be a great way to secure a stable, passive income when purchased as a buy-to-let.

This is because not only do you receive a consistent income from renting, often covering the cost of any mortgage, you also benefit from owning an asset that will receive a capital gain – a great alternative to keeping money in an interest account.

However, the success of your buy-to-let property investment comes down to a variety of factors. As well as the type of property you purchase and the way you market the property (think HMO, student property), a significant factor is where you opt to make your property investment.

So, where are the best places across the UK to invest in property?

Best areas for capital growth

The latest research has provided interesting insights into the locations of some of the best property investments you can make. Despite turbulent market conditions as a result of the ongoing uncertainty surrounding Brexit, several areas in the UK are continuing to see house price growth and high levels of rental yield.

Whilst many may assume Northern cities such as Manchester and Liverpool to have received the highest house price growth, North Devon actually tops the table at a whopping 15 percent year on year growth in property prices.

Stated to be due to the areas continued attraction to those living across the UK, inward migration toward North Devon is high. With a relative scarcity when compared to other areas across the UK. House prices have grown, and property owners have benefited.

Wales has seen high levels of growth in this area as well. Areas in Wales that have seen high levels of growth include Merthyr Tydfil at 13 percent and Caerphilly receiving average growth of 11 percent.

Looking at the capital, house prices are up 10 percent in Camden, with property across the rest of the capital receiving fairly low growth, especially when compared to recent years pre-Brexit.

Where you would assume a link between house growth and rental income, this does not appear to be the case. Looking further into the findings, we see a number of other areas rank high for best areas for a buy-to-let property.

Best areas for buy-to-let

When it comes to increase on return from rental yield, Glasgow takes top spot. Glasgow has seen a 6.5 per cent increase in rental yields over the past year. In fact, Scotland as a whole appears to be experiencing something of a surge, with Midlothian (6.8 per cent), East Ayshire (6.8 per cent) and West Dunbartonshire (6.7 per cent) accounting for the next three highest on the list, with the top 10 also dominated by Scottish towns and cities.

Elsewhere, Burnley saw rental growth increase of 6.5 per cent with the Western Isles seeing a 6.2 per cent increase. Those looking to invest in property for buy-to-let purposes that are less particular about where the investment is held will see high value in Scotland.

A reflection of the market 

We are seeing a change in the way the rental sector is headed. Changes being introduced have made it difficult for landlords to get a return like they once did, largely due to changes made by the Government to make it easier for first time buyers to enter the market.

In addition, with the advancement of tech-based solutions to traditional obstacles, geography of a property investment is becoming an ever-increasing smaller hurdle. Property investments now can be managed just about anywhere in the world. This makes it easier for first-time investors to make a successful investment.

This management has been facilitated by digital rental platforms, allowing landlords greater control whilst managing their property portfolio, wherever these properties may be, at any time of the day. Like many working industries, the ability to manage a property is becoming more and more remote.

Letting agents are also providing greater piece of mind to landlords as they begin to operate at a UK-wide radius, becoming better placed to deal with all manner of queries the tenant may have. This ability to invest across the UK is allowing landlords to maximise their financial gain by investing in their preferred areas across the country.