Whether you’re an experienced investor looking for your next purchase or you’re new to investing and keen to make your first ever property venture, the UK property market is definitely something to consider. With lucrative investment options and a lot of potential for capital growth, investing in UK property can be a worthwhile venture that sets you up for a strong financial future. Here are some of the best type of properties to consider when it comes to UK property investment.
Student accommodation is a thriving market in the UK, worth around £46 billion and expected to continue growing over the coming years. With a number of UK cities boasting a large student population, there’s a constant demand for student accommodation. In Manchester, for instance, around 99,000 students are studying in the many institutions of the city, with around 70,000 in Liverpool. Student property makes an attractive investment thanks to the high levels of demand, but also the fact that these type of properties are often more affordable to purchase and come with impressive rental yields. More recently, the market is starting to focus on accommodation with a more high-end and luxury edge. Students today are keen to rent properties with features like high-speed Wifi, modern decor and up to date facilities, and proximity to the city’s main attractions and university campuses.
City centre residential apartments
Residential apartments are another of the most popular property types that investors purchase, and for good reason. These type of properties are a good idea if you want to target young professional tenants for your rental property. Young professionals are another tenant type that is driving this demand for rental properties in the UK, especially in cities with a good reputation for business opportunities. Manchester is an example of a city with growing demand from this type of tenant, with record numbers of young people reportedly moving from London to Manchester in the last few years. With the majority of young people struggling to buy their own home, these tenants are renting for a lot longer than in the past, meaning investors will always benefit from a steady influx of demand. City centre properties often work best for these type of residential apartments as tenants prefer to rent somewhere that’s close to their workplace and the city’s bars, restaurants and nightlife. Opportunities from property company RW Invest provide the perfect solution, offering residential apartments in the city centre of key cities like Liverpool and Manchester, with rental yields as high as 7 or 8 per cent.
Homes for renovation
Buy to let isn’t the only type of property investment. A lot of people who buy an investment property choose to purchase a home that needs a bit of renovation. Those purchasing a ‘fixer-upper’ home will buy a run-down property for lower than usual and then sell it on for a higher price once they’ve done some renovations. The chances of increased value are even higher if you purchase a property in a prime location with a reputation for capital growth. While this type of property investment can be a great way to generate attractive returns, it does require a lot of patience, creativity and knowledge. Only enter this type of property investment if you’re prepared to wait for the returns you want. If not, buy to let may be your best bet.