Since the announcement of further delays to the Brexit deal, there has been more shifts in the property market in the UK, particularly in England and Wales. White initial predictions for 2019 (back in December and January) saw many investment and property specialists putting cities such as Liverpool and Newcastle at the top of the tables, as well as predicting a big bounce-back for London, this hasn't yet materialised, and the current best buy-to-let locations are much more scattered.
Recent research by LendInvest has compiled a list of the top 10 locations investors should be looking at for buy-to-let if they are considering investing in Q2. Within this research, the top three places came out as Colchester, Stockport and Manchester.
With Colchester rich in history - being the former capital of England in AD60 and with Colchester Castle being one of the largest Norman keeps in the country - the town is able to offer a unique investment experience for discerning landlords. Colchester ranked first for rental price growth at 6.5%, and boasts a thriving rental market, especially in the student sector, with the town hosting the main campus for University of Essex. There is also a lack of residents looking to get onto the property ladder, and a lack of developments in the area, giving investors a high demand market.
Stockport takes second place on the list, with a rental price growth of 3.18%. Despite having a lower rental price growth than Colchester, the town actually has a higher rental yield of 3.75% on average across all sectors, and a higher capital gains prediction than anywhere else in the area. Since the report in June 2018, Stockport has climbed an impressive 18 places to now hold the number two spot - a success that has been attributed to a wealth of regeneration projects in the area, as well as Brexit pushing investors towards the north west.
Manchester, third on the list, has been a big talking point since the 2016 referendum, and has seen a massive increase in rental demand, house prices and regeneration. Greater Manchester now boasts some of the best developments in the country, as well as some of the highest plugs of investment. It's also a major player in the Northern Powerhouse and HS2 schemes.
The Midlands has also seen a wealth of investment and regeneration projects over the past few years, seeing its main city, Birmingham, climbing the tables to now be the fourth best buy-to-let location for 2019. Benefitting from one of the largest professional service sectors in the UK, the city has seen a massive surge in young professionals move to the area looking for high quality city centre rental accommodation. Also, in the region, Wolverhampton, now lying seventh on the list, has climbed more than 20 places. Wolverhampton has been injected with a wealth of regeneration funds recently, particularly in its transport, and offers a great cheaper alternative for commuters to Birmingham.
The remaining places on the list saw the best buy-to-let locations of 2019 come out as (based on a variety of factors including rental demand, population growth, rental yield growth and capital gains):
Sheffield is also making a name for itself in the 2019 buy-to-let market. iMoveEstates announced in their recent report that Sheffield's city centre based S1 postcode was one of the best postcode areas for buy-to-let opportunities this year, with an average monthly rent (net) of £645, and an average asking price of only £69,995 for studio apartments.