Property Hotspots 2018
Where are the property hotspots that are going become popular in 2018? Thinking of investing in a buy-to-let? Or perhaps you’re looking for your next home and want to know where to buy to get the best return. Well, you’re not alone. Good old bricks and mortar remains a popular choice for the UK investor. However, there are of course no guarantees, and investing in property is not without its downsides, so you should do your research carefully before moving forward with any purchase.
What to consider
• Cost – the real cost of purchasing a buy-to-let is higher than it used to be, due in large part to recent legislation which was designed to address the nationwide housing shortage and put the brakes on this booming market. As a landlord, you’ll now pay more stamp duty, some tax breaks have been removed, and higher house prices can mean lower profits.
• Term of investment – it’s not all doom and gloom though. Many experts believe that property can still be a sound investment, providing you’re in it for the long-term and not as a way to ‘get rich quick.’
One thing’s for sure. Whether you’re looking for your next move, or a lucrative buy-to-let, you’ll want to achieve the highest capital growth you can. And in the case of buy-to-let, you should also consider areas with the highest demand for rental properties, ideally coupled with low supply.
Where to buy
So, whether you’re a seasoned investor looking to add more property to your portfolio, or you’re dipping your toes into the buy-to-let pond for the first time, you’ll need to know where to put your hard-earned cash.
We’ve put together this handy round-up of the best property hotspots for 2018.
Hugely inflated house prices across London and the South East mean that savvy buyers are increasingly flocking to the north of England. Indeed, a recent KPMG report predicted that Yorkshire and the North West will enjoy some of the UK’s highest growth in house prices in the next few years.
Touted by many as the ‘London of the North’, Manchester has a huge student population and a thriving, cosmopolitan city centre which is surrounded by a number of popular, largely gentrified suburbs, such as Didsbury and Chorlton. Property prices in these areas are on the high side, but you could still benefit from high rental demand and a much higher yield than London. Areas such as Salford and Tameside are also well worth looking at. Regeneration projects and the establishment of Media City in Salford have led to high demand and a great tenant profile.
The Northern city of Leeds also benefits from a large, student population and a thriving city centre which has benefited from significant inward investment in recent years. House prices are on the increase in many areas of the city, with sought-after areas including Horsforth, Roundhay, Headingley and Chapel Allerton, to name but a few.
Increasingly popular with property investors from the UK and overseas, and enjoying a large student population, demand in Sheffield is currently outweighing supply. Desirable suburbs which neighbour the Peak District, such as Ecclesall, Millhouses and Dore have seen house prices more than double in the last decade, although there are still bargains to be snapped up in other areas of the city.
The cosmopolitan suburbs of Crookes and Broomhill benefit from close proximity to the city centre as well as universities and hospitals, making them popular with students and young professionals. The Kelham Island area, just outside the city centre, is a fantastic example of urban regeneration and is perhaps one of the most interesting investment opportunities in the city.
So if you’re looking to invest in property in 2018, you need to be aware of the changes that have occurred in the buy-to-let market. And if you remain undeterred, the smart money certainly seems to be heading north.