Location is all important when finding the perfect UK buy-to-let property investment. You are set up for success if you can find somewhere with a growing population, booming economy, inadequate housing supply, and great connectivity.
But where can you find a property location like this? Key locations in the North West – such as Manchester and Liverpool city centres – have all these qualities and more, making the region the UK’s best buy-to-let property investment area.
Population Growth
A growing population is arguably the number one thing a property investor needs to look for when searching for their next investment location. This is for the simple reason that more people competing for the same properties will push house prices and rents up – the two income streams investors benefit from.
For example, in Manchester the City Council notes that the city centre population alone has reached almost 100,000 people now, representing a growth of almost 40,000 people in the last decade. The wider city population has grown to more than 618,000 in that time according to Council estimates.
The picture is much the same in Liverpool. The city’s population grew by 4.2% over the last Census period, and the City Council’s Local Plan forecasts an additional 45,000 people will move to the city in the next 10 years.
Both cities also bring tens of thousands of students from around the world to the North West, creating even more demand for the available housing. Student accommodation is oversubscribed and a huge number of students end up renting residential properties instead.
House Price and Rental Growth
The North West also has a major housing supply issue. Returning to Manchester and Liverpool to illustrate, neither city is building anywhere near the amount of housing needed to meet their current or future requirements. This is creating a high-demand, low-supply environment that keeps pushing up house prices faster than the national average.
For example, just 11,765 new homes are in the pipeline in Manchester for the next four years, but just 867 in the most popular city centre area. Due to this low building rate, the City Council estimates that the shortfall of available homes will grow by a minimum of 500 a year.
This lack of supply is repeated across all the major property locations in the North West and is lifting house price growth and rents in the region as a whole above the UK average.
The latest residential forecast from Savills shows that property values in the North West are set to increase by 28.8% by the end of 2028. That’s more than any other region in the UK and substantially higher than the predicted national average of 21.6% in the same period.
Savills also expects rents to grow 18.1% on average by the end of 2028. However again, the North West is growing faster than the rest of the country. Take Manchester again for example. Data from JLL shows that rents in the city have gone up 50% in the last three years, and the company’s latest residential forecasts predict rents in the city will increase by 19.1% by the end of 2028.
Those forecasts make the region the UK’s best buy-to-let investment location and a place where all investors should be looking to buy UK property.
Growing Economy and Regeneration
Another important factor to consider when looking for the right investment destination is economic growth. If the economy is growing and money is being pumped into regeneration, it’s a good sign that there are high-quality jobs and a vibrant lifestyle – important aspects for professionals, families and students alike.
The North West’s economy is growing so fast that serious analysts like Deloitte are beginning to ask whether the region could be the UK’s growth and productivity leader by 2035.
Jo Ahmed, North West Practice Senior Partner at Deloitte, said: “I have witnessed first-hand the success of public and private sector partnerships on an international stage and the success that can be delivered in terms of investment, jobs, innovation and technology.
“For the North West, I believe the region has the potential to be the UK’s economic growth and prosperity leader over the next 10 years.”
The NatWest Regional PMI Growth Tracker confirms this positive picture for the North West. The region has seen positive growth every month this year, and prospects for future growth hit a three-year high in August.
That sort of success means that people will keep moving to the region for many years to come. It fuels the population growth discussed previously and ensures that it will continue for many years to come.
Connectivity
Finally, the North West enjoys some of the best connectivity in the country. Major train lines run to the region via Manchester Piccadilly, Liverpool Lime Street and other large train terminals.
Additionally, important motorways like the M6, M56 and M60 run directly through the North West. They link the big cities to London, Birmingham, Wales, Scotland and other destinations which are key for both business and leisure.
Additionally, the region is linked to the rest of the world via Manchester Airport and Liverpool John Lennon Airport which are two of the busiest air terminals in the UK. More than 200 destinations around the globe can be reached easily – another factor which makes life in the North West attractive for both business and general lifestyle purposes.
Buildings like Vivere in Manchester which offer easy access to all of the above transport links are a renter’s dream – and that makes them a priority option for investors too.
Those airport links are also another reason why the region is so popular with international students from around the world, but particularly from the Far East, South Asia and the Middle East. Manchester and Liverpool alone are home to more than 50,000 international students – a key group of potential renters for landlords looking for UK investment property.
Want to learn more about the North West and why it is such an outstanding buy-to-let investment location? Get in touch with our team today to discover more about the region.
