London always has and always been the center of the UK property investment markets, but more and more we are seeing exception property investment opportunities emerging in unexpected parts of the United Kingdom.
One such case is the commuter town of Luton, which is now believe it or not the best location in the United Kingdom to invest in buy to let properties, closely followed by Colchester and Manchester when you take into account key factors such as yields, rental growth and capital gains, or at least that is according to the latest quarterly research.
Luton took the number one spot with a rental yield of 4.5%, capital gain of 10.29% and rental price growth of 6.81%, followed by Colchester with 4.22%, 13.02% and 3.34%.
Manchester moved into third place on the strength of rental yields and capital gains.
‘The data supports the strong market sentiment that the impact of price sensitivity in London and the South East isn’t being felt to the same degree elsewhere around the country,’ said Ian Boden, sales director at LendInvest.
He pointed out that cities such as Hull and Nottingham have made significant gains in the index, up 33 places and 35 places respectively. ‘It points to competitive market conditions in those areas and higher than average levels of activity,’ he explained.
‘Maintaining a balance between the types of tenure in our housing system is more important than ever. We would expect to increasingly see professional buy to let investors become cross country landlords, and diversify their portfolios by looking beyond their local areas to find the best investment opportunities elsewhere around the UK and entering alternative asset classes,’ he added.
So as we can ascertain from this report as property investors in the UK markets we have ample opportunities outside that of London to make great returns if we only know where to look.