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NEWS: Best Place to Invest in Property 2024 Revealed
High rental demand and growing property prices – here's why Bristol is the UK’s newest buy to let hotspot
According to Aldermore’s Buy to Let Tracker, Bristol has been named the Best City for Property Investment in 2024. The decision is based on five key factors: average rent, best short-term yields, house price growth, percentage of vacancies, and percentage of the population in the rental market.
After consistent growth in each of these areas for the past three years, Bristol has stolen the spotlight as the top city for buy to let investments in the UK.
Additionally, landlords are seeing growing long-term returns, with an overall property value increase of nearly 90% between 2013 - 2023.
The combination of a high rental demand versus low amount of rental property available presents a lucrative gap in the market for property investors. Rental and purchase prices are expected to increase steadily as Bristol sees more investment and its economy continues to flourish.
The city has become a popular spot for tech start-ups, creative media and aerospace engineering. Job opportunities in these sectors have contributed to Bristol’s economy, leading it to be voted the UK’s third strongest economy in 2021.
Furthermore, it has a high employment rate at 76.7%, with 20.2% of those classed as ‘economically inactive’ due to being students, making it even more attractive for landlords.
Related: Spring Budget 2024: 5 Key Property Market Takeaways
Why is Rental Demand so High in Bristol?
Firstly, a lot of first-time buyers are finding themselves priced out of the market amid the cost-of-living crisis in the UK. Individuals are renting for longer, meaning larger competition for a limited number of rental properties.
Secondly, Bristol is growing rapidly. The city’s population has nearly doubled in the past 15 years, with a population of just over 412,000 in 2009 to a whopping 714,000 in 2024.
This is namely due to Bristol’s increasing student population, and its evolving job market is attracting an expanding number of professionals.
Bristol’s thriving economy, nightlife and wealth of cultural activities make it a desirable place to live. In the past five years, it has become a popular base for professionals who have been priced out of London but are looking for a similar bohemian environment paired with good career prospects.
See similar: How to Switch to a Buy to Let Mortgage
Where’s the Best Place to Invest in Property in the UK?
Despite its high property prices, London has been a top choice for property investment due to its strong rental demand, diverse economy, and potential for capital appreciation. But consistently high property prices are reducing rental yields for buy-to-lets, and as rental demand increases across the country, other cities pose lucrative opportunities for investment.
As property prices begin to slump, other cities are stealing the limelight as hubs for affordable property investment. Bristol offers particularly high ROI, because as a rapidly evolving city property and rental value are expected to soar.
Related: How to Get a Limited Company Buy to Let Mortgage
Where Should I Invest in UK Property in 2024?
Regional cities like Bristol, Birmingham, Edinburgh, and Glasgow have shown promise in terms of offering competitive ROI. These cities benefit from strong economic fundamentals, diverse industries, and infrastructure developments, making them attractive investment destinations.
Additionally, cities with good transport links to major employment hubs, such as commuter towns near London or other major cities, can provide investors with opportunities for high ROI. Property prices can be higher in these areas, but rental demand from commuters and professionals working nearby can result in attractive rental yields.
Areas undergoing regeneration or urban redevelopment projects can also offer potential for high ROI. These areas often experience improvements in infrastructure, amenities, and property values over time, attracting investors seeking capital growth opportunities.
Is it Still Worth Investing in UK Property?
Yes, investing UK property can still be lucrative. The demand for rental properties remains strong in many parts of the UK, particularly in urban areas and university towns where there is a large student or professional population. High demand can translate into consistent rental income for landlords.
There are more regulations in place for landlords, and rental yields have been slightly slimmer in recent years, but overall rental demand in the UK is still high. On top of that, rent is continuing to increase across the country, especially in cities seeing exponential growthsuch as Bristol, London, Manchester, Edinburgh and Brighton.
Read blog: HMO Mortgages - How to Finance an HMO Property
Where is the ROI Highest in the UK?
Cities like Manchester, Liverpool, and Leeds have often been cited for offering attractive ROI due to their affordable property prices, strong rental demand driven by large student populations and growing economies, as well as ongoing regeneration projects.
Additionally, areas with reputable universities tend to offer high rental yields and potential for capital appreciation. University cities such as Bristol, Manchester, Birmingham, Nottingham, and Newcastle can provide landlords with attractive ROI due to consistent demand from students and graduates who have stayed in the city.
Considering Investing in a Buy to Let?
Whether you’re looking to invest in Bristol or elsewhere in the UK, we can help. At Clifton Private Finance, we have relationships with high street, private and specialist lenders across the industry. Our dedicated team of mortgage brokers can offer you tailored advice on your options and guide you through the mortgage process.
Working with a broker can ensure you have access to the best deal for your circumstances, including market-leading rates and bespoke finance solutions. We have expertise working with complex circumstances, such as income structures, foreign currency earnings, and asset portfolios.;
Where appropriate, our team can take a holistic view of your wealth and put you in contact with the most suitable lender.
We offer creative solutions for landlords who wish to purchase or remortgage buy to let properties. Call our buy-to-let team on 0117 332 5491 to discuss your requirements, or book a call-back below.
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