The property market has long been a major asset when it comes to investments in the UK. Investors from around the globe are drawn to the lucrative opportunities available in the UK on a yearly basis, with 77% of investors in the GCC considering the UK as the top destination for overseas investment. Rates of overseas investment have been so high in recent years that house price growth has risen by more than a quarter due to the billions of pounds being put into the property market. But what cities make the best and most worthwhile ventures for international investors? Let’s take a look at some of the best UK cities for foreign property investment.
Liverpool
A cultural hub that’s always growing and expanding, Liverpool is quickly gaining a name as one of the UK’s best cities. Property investment in Liverpool comes with fantastic prospects, offering some of the lowest prices and highest rental yields in the country. Unlike London where house prices can average £671,412, Liverpool boasts an average house price of £130,677, along with fantastic rental yields of 5.05%. One property investment company that recognises the appeal of Liverpool compared to London is RW Invest, which offer investment opportunities in Liverpool from as little as £45,450 with impressive 8% rental yields. With a student population of around 70,000, investing in the purpose-built student accommodation market in Liverpool is a great idea for overseas investors keen to buy into an in-demand market.
Manchester
Liverpool’s Northern neighbour, Manchester is another city that’s quickly moving up the ranks when it comes to investment. Overseas investment in Manchester is among the highest in the country, having attracted the largest amount of foreign direct investment outside of London in 2016. The strength of Manchester as a property investment hotspot has likely be driven by the Northern Powerhouse, an initiative that aims to boost the economy and quality of life in the key cities of the North. With house prices averaging around £158,800 with 5.5% average yields, investing in Manchester is a promising venture that’s sure to result in high capital growth.
Leeds
Another Northern Powerhouse city, Leeds is definitely one to watch for overseas investors. The Yorkshire city has some big plans set in place for the future, such as a proposed £350 million regeneration scheme that will bring the creation of new homes and business opportunities into the city. Leeds already boasts an impressive business scene, with the second largest financial sector in the UK which is likely to attract large numbers of young professionals to the city. With young professionals typically making up the largest population of people choosing to live in residential city centre properties, this means the demand for high-quality accommodation is expected to rise. Along with high demand from professionals, demand from students in the city is prevalent, with Leeds being home to a number of fantastic institutions. Recent reports predict that Leeds rental growth will increase heavily between the years of 2018 and 2022, with current average rental yields of 4.29% expected to grow.