"City living has gained strong momentum in Manchester over the past three years and, together with an active student market, has pushed demand in both the sales and lettings markets noticeably higher"
Neil Chegwidden, JLL Residential Research
These properties provide investors with high returns as well as a safe investment since the price of property has only increased during the last few years. City centre locations typically have higher rental rates too, which is why buy to let is even more appealing. However, certain cities provide higher rental yields compared to others, and this is why it’s essential you research the best places to invest in the UK before you jump right in. Landlords looking for the best UK buy-to-let areas should consider all options available, even including the lesser known and smaller city centres. Not only do buy to let properties allow you to gain long term financial security, but they also generate a consistent income.
The growing student population and demand
With places like Liverpool and Manchester coming out on top in terms of the best student cities to live in, it’s no wonder the demand for accommodation is expanding. Young people are leaving London to move up North, and the number of students choosing universities in Northern cities is higher than ever. As the demand grows, landlords and investors continually want student properties to rent out to prospective tenants living at university. Since 1992, student numbers have almost doubled with approximately one in every three people aged between 18 and 24 being in full-time education. Students prefer properties near their campus, which is more than likely in the city centre. Also, those who move away from rural areas into city centre locations for university often choose to stay when they graduate. Therefore, the more students attending city centre universities, the higher the demand for city centre properties.
More young people are renting
As more millennials are choosing to rent properties rather than buy, the demand for properties is growing. Up to a third of young people will live in private rented accommodation during their lives, which means the opportunity to invest in buy to let properties are increasingly popular. Also, rented accommodation is more sort after by young people due to it being a reasonable choice for those with few ties. Since the buy to let market is lucrative, investors are choosing city centre properties with high rental yields. The possibilities for investors are endless. Property experts like RW Invest advise those who wish to invest in residential or student buy to let properties in major cities such as Liverpool and Manchester.
The regeneration of cities
The restoration of cities also contributes to investors wanting properties in the city centre. Both Liverpool and Manchester boast various new developments along with employability opportunities for young people. Buy to let properties are popular as those who live inner city prefer renting for short periods. This is beneficial to the investor and the tenant as they will both get what they want. In the last few years, Liverpool has been transformed into one of the UK’s leading destinations, which has also created a vibrant and prosperous new city status. Therefore, meaning more people are choosing to live in the city centre, and there is more opportunity for buy to let properties than ever before.