In a year that continues to redefine the UK’s economic and social landscape, investors are looking beyond the conventional to discover more property investment potential throughout the UK.
The year 2024 is not just about location but about foresight and strategy. As a leading UK property investment company, we delve deep into the data and trends to guide you to the places where your investments could thrive.
How 2024 Is Shaping the UK Property Market
From the bustling urban regeneration projects to the quiet suburban expansions, the UK’s property investment landscape is diverse and brimming with potential. Factors such as the government’s commitment to infrastructure development, a surge in the tech industry, and cultural revitalisation are contributing to a robust investment environment. These factors are creating pockets of opportunity for investors who know where to look.
Key Indicators for Property Investments
Identifying the best areas to invest in property requires a compass that points to economic growth, demographic trends, and future developments. For 2024, we recommend focusing on cities with significant regeneration projects, rising educational institutions, and technological advancements. These key indicators are reliable predictors of property demand and, consequently, investment success. Cities that show a combination of these characteristics are likely to offer the best returns on property investments.
The 2024 Guide to UK Property Investment Hotspots
Birmingham
Birmingham is a hot spot for property investment for a few key reasons. Its young and professional population is growing, which means more people are looking for places to rent, pushing rental prices up by 12% in the next five years. The city offers lower property prices compared to the national average, with an expected growth of 24.5% in the next four years. The new HS2 rail project is making Birmingham more connected, cutting travel time to London and boosting house prices by 35% since 2017. Big projects and events like the Commonwealth Games are also expected to increase property values by 27% by 2026. Certain areas, like the city center, Digbeth, and the Jewellery Quarter, offer great rental yields, up to 10.34%, making them great for investment.
Leeds
Leeds presents a lucrative investment opportunity due to its rapid economic growth and significant regeneration projects that are transforming the cityscape. With a large student population, there’s a constant demand for accommodation, bolstering the rental market. The city’s cultural vibrancy and lifestyle offerings, combined with affordable property prices relative to other major UK cities, make it an attractive option for a broad range of investors. Enhanced transport links, including the anticipated HS2, further increase Leeds’ appeal by improving connectivity. Altogether, these factors contribute to Leeds’ emergence as a northern powerhouse, offering investors strong rental yields and potential for capital growth, all while moving towards sustainable development.
Nottingham
Nottingham is rapidly gaining attention as a prime location for property investment in 2024, thanks to its significant economic diversification and growth, particularly in the tech sector. This economic vitality is attracting a steady influx of young professionals, fueling demand for housing and making the city a hotspot for buy-to-let investments. Coupled with Nottingham’s vibrant cultural scene, excellent educational institutions, and strategic regeneration projects aimed at enhancing the city’s infrastructure and residential areas, investors are presented with a compelling mix of high rental demand and potential for capital appreciation. The city’s commitment to sustainable development and improving public transportation further bolsters its attractiveness to both investors and tenants, positioning Nottingham as a smart choice for those looking to capitalise on the UK’s dynamic property market.
Glasgow
Glasgow is transforming into one of the UK’s most promising investment landscapes, thanks to significant investments in urban regeneration and public transport enhancements. The city boasts an impressive average rental yield of 5.07%, with particular areas offering even higher returns. Glasgow’s house prices have experienced a steady increase, with forecasts suggesting a 6% rise in the coming year, fueled by a growing population and a vibrant cultural scene. The city’s commitment to sustainability and innovation, including the Glasgow City Innovation District, is attracting a new wave of young professionals and tech startups, positioning Glasgow as a lucrative option for property investors.
Liverpool
Liverpool’s resurgence is underpinned by extensive regeneration projects, including the £5.5 billion Liverpool Waters development, revitalising the city’s waterfront and driving up property values. Rental yields in Liverpool are among the highest in the UK, averaging at 6%, with some postcodes yielding up to 10%. The city’s property market is set for further growth, with house prices expected to rise by 3-5% in 2024. Liverpool’s cultural heritage, combined with its dynamic economy and increasing student population, makes it an attractive destination for investors seeking strong rental demand and significant capital growth potential.
Where will you be investing this year?
Your investment strategy in 2024 should be as dynamic as the market itself. From buy-to-let in student-heavy cities to short-term holiday lets in cultural hotspots, diversifying your approach can spread risk and increase potential gains. Also, consider the long-term growth potential of any investment, keeping an eye on upcoming developments that could increase property value.
Author
Chris Kirkwood
