Best Locations to invest in UK Property

Important: this is an opinion piece based on our experience and research and should not be taken as advice.

This is a question which is impossible to answer with any guaranteed accuracy. At Fabrik we look at many factors from potential yields, regeneration of an area, demand for certain assets, historical growth and much more. At best we aim for a well-educated guess.

Best location to invest in UK property – The best location will depend on your investment goals, for strong reliable passive income Manchester is a good place to start, along with other major Cities. If you are looking for a good deal to refurb, then any location you can find the right deal.

For Fabrik our favourite and in our opinion, the best places to invest are…

1. Manchester
2. Sheffield
3. Blackpool
4. Birmingham
5. Liverpool

Read below to learn why these are such good locations to invest…

 

The answer to this question will also depend on several factors which will be personal to you.

1. Are you looking to build a passive or active property portfolio

 

If you are not looking to spending close to full time on building a portfolio then you will be looking at a passive strategy, as such you want a newer property with reliable tenants and income. Likely to be a major city centre with high yields and strong forecast in growth, for example…

 

• Manchester
• Birmingham
• Liverpool
• Sheffield

 

Essentially all major city centres outside of London. The only reason we did not include London here is due to the entry levels and much lower yields which may only bring you yields of around 3% compared to 7% in other city centres.

 

If you’re an active investor looking to refurb, then your choices open in terms of area. Essentially you are just looking for a property in which you can offer well below the potential market value after a refurb, which you can read about more here… You could potentially find a property anywhere, just ensure you have done your maths correctly and know what profit you can make from it. At Fabrik we have invested using this technique in many locations including…

 

• Blackpool
• St Helens
• Anywhere you can get a profitable deal

 

 

2. Are you just looking for somewhere to safely place your money

 

When it comes to wanting to place your money for as much security as possible then few locations in the world are better than London. Maybe some other central city locations such as Birmingham, but still, they are not as appealing as London for this purpose. This is a very popular option for international Billionaires and Multi-millionaires.

• London

3. What kind of asset are you looking to invest in

 

Ideally you may want to be open to what kind of asset you wish to invest in, especially if it is purely for a passive income. However, there are exceptions, for example if you want a Short-term let holiday home which you can use a couple of times a year for your personal use. In this case you are balancing how good the investment is with where you personally like to visit.

At Fabrik we have invested in and continue to have success with short term lets in Blackpool, however this is not considering where we personally go on holiday, so this is more of a financial decision than one made with our own leisure needs in mind.

So, the answer to this is unless you are looking for a holiday home then keep your minds open in terms of asset and their potential locations.

Good residential apartments with high yields can be found in the same locations as previously mentioned…

• Manchester
• Birmingham
• Liverpool
• Sheffield
•  

Holiday lets anywhere you personally like to visit.

• Lake district
• Peak District
• Lancashire
• Blackpool
• Cornwall
• Dorset

etc..

You can read more about holiday investments here…

Student properties are also another asset where you need to pick location carefully. Some markets such as Liverpool have been very popular, however it is a market that has become a little saturated, and in reality, many students prefer HMOs to. Other student towns/cities include…

 

• Manchester
• Birmingham
• Liverpool
• Leeds
• Sheffield

 

4. Do you want High yields, capital appreciation or a combination of both

 

Some locations may lend themselves better to high yields, others are good for capital appreciation. However, this can all be very dependent on many other factors, the location can only help you put odds more in your favour.

Look at the statistics here, so for high yields you will be looking at Northern cities and towns…

• Manchester
• Blackpool
• Liverpool
• Nottingham
• Sheffield

For high capital appreciation look at forecasted price growth, also look at possible regeneration for an area. These cities are ranked highest for forecast growth according to https://www.cityrise.co.uk/uk-house-price-forecast/

• Birmingham
• Manchester
• Liverpool
• Leeds
• Sheffield

 

Manchester, Sheffield and Liverpool fall into both these lists so will also be a great combination for capital appreciation and rental yields.

 

5.What are your risk levels

If you are very low risk then you will look at areas that perhaps do not offer high yields, as typically speaking “with risk comes reward”. This is less about location and more about the property itself. However, Central London for example is a safe long-term option for having your cash sit safely. The more central in a major city the safer (as a rule of thumb).

If you are very risky then look at towns that may not have loads going for them. Investing in Blackpool a few years ago may have been a risk but has since yielded some of the best results for Fabrik Property Group, as just 1 example. Other run-down areas such as Newcastle or Middlesbrough, where property is very cheap but yields can be high. With a lot of promise from government regeneration projects etc... these could yield big results but come with greater risks than somewhere such as London.

 

For more on these locations read our guide on each city…

 

https://fabrikpropertygroup.com/london-buy-to-let-property-investment/

https://fabrikpropertygroup.com/birmingham/

https://fabrikpropertygroup.com/blackpool-property-investment/

https://fabrikpropertygroup.com/property-investment/liverpool/

https://fabrikpropertygroup.com/manchester-investments/

https://fabrikpropertygroup.com/preston-buy-to-let-property-investment/

https://fabrikpropertygroup.com/sheffield-buy-to-let-property-investment/