Where is the Best Place to Invest in Buy-to-Let Property?

Best Locations to Invest in Buy-to-Let Property

We believe there are good opportunities in most locations if you buy at the right price, however, Regency Invest identify and focus areas that are affordable and provide excellent yields, as we believe in investing for positive cash flow in order to produce a good income, in addition to areas with great potential for capital growth, providing long-term benefit.  
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Forecast Property Price Increases

UK house prices are forecast to increase by 20.4% over a 5-year period* by industry experts, with some regions expected to outpace others:

1. North West = 27.3%

2. Scotland = 25.4%

3. Yorkshire & the Humber = 24.1%

4. East Midlands = 22.6%

5. Wales = 22.3%

6. West Midlands = 21.7%

7. North East = 21.7%

8. South East = 17.3%

9. East of England = 17.3%

10. South West = 17.3%

11. London = 12.7%  

*Savills residential forecast

Future performance cannot be guaranteed, nor can it be determined by historical performance, however, by utilising research and forecasts by industry experts, investors can make an informed decision.

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Forecast Rental Growth

Our focus is on identifying opportunities in areas that provide positive cash-flow:

1. Greater London = 17.1%

2. Manchester = 16.5%

3. Birmingham = 16.5%

4. Liverpool = 14.8%

5. Leeds = 14.2%

6. South East = 11.5%

7. Prime Central London = 10.9%

‍*JLL cumulative 5 year rental growth forecast from 2020

We must stress that future performance is not guaranteed, but we look to the expert opinion so investors can make informed decisions.

Rental growth is impacted by a variety of factors, including:

• the supply of private rental accommodation available in the area
• the types of property (e.g. apartments, houses, size of property)
• pipeline of new builds under construction or where planning permission has been granted
• improvements to transport infrastructure making new areas more accessible  
• changes to the size of population
• quality of life (e.g. if areas are more affordable and offer a higher standard of living)
• large businesses moving into the area
• regeneration
• political factors
• economic factors
• global crises
• market trends (e.g. Londoner’s are now prepared to look further outside the capital for new build property)

How do Regency Invest select locations?

We identify areas for capital and rental appreciation based upon forecasts from industry experts and our own analysis, which is data driven as we look at various aspects of an area, including:

1. Regeneration of areas that are attracting significant domestic private sector, public sector and international investment on infrastructure and transportation links (which leads to)

2. Industry and company migration as large businesses are attracted to up and coming areas such as what was achieved with Media City in Salford Quays where workers moved from London to Manchester (which leads to)

3. Strong economic growth and forecast economic growth (which leads to)

4. Job creation (which leads to)

5. Undersupply of properties, driving a sharp increase in rental demand and capital growth

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We follow certain fundamentals to ensure the three main goals are achievable, being:

1. High rental demand

2. Good rental yields

3. Strong capital growth prospects

Property Investment in The Northern Powerhouse

The Northern Powerhouse is a prime example of a multi-regional area that is the focus of the government to narrow the economic and wealth divide between the North and south of England. For a long while the Northern parts of England have not attracted investment into infrastructure and transportation links, compared to investment into London and its surrounds.

Building a Northern Powerhouse is focused on super charging the local economy by investing in skills, innovation, transport and culture, in addition to devolving significant powers and budgets to directly elected mayors to ensure decisions in the North are made by the North. The government in backing business growth across the North by providing cities including Liverpool, Manchester, Sheffield, Leeds and Hull the power and resources they need to reach their potential.   

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Between 2015 and 2020 the government spent over £13 billion improving and modernising northern transport, which was a record level of investment and there is a huge amount of work being planned and delivered between towns and cities across the north-west, north-east and Yorkshire and Humber. From major visionary schemes like Northern Powerhouse Rail and HS2, the first new north-south railway in this country for over a century, to local road and rail upgrades to improve everyday journeys and better connect lives, jobs and communities.

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The Northern Powerhouse is globally recognised as home to billions of pounds worth of opportunities for international investors covering a variety of sectors from energy, automotive, aerospace, tech, advanced manufacturing, life sciences, financial, business, professional services and digital, with nearly 40,000 new jobs created between April 2015 and March 2018. The UK government is committed to supporting international investment into property development and infrastructure projects, and the Northern Powerhouse region has exciting capital investment projects in a variety of industries.

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International demand for high quality, innovative products and services from Northern businesses is rapidly growing with £59.6 billion worth of goods exported overseas in the year to March 2019.

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The Northern Powerhouse is recognised across the world as an established, globally competitive and thriving economic area with ambition for growth. The Northern Powerhouse is a key driver to achieve our three fundamentals with buy-to-let property investors able to capitalise from:  

• Regeneration attracting significant investment  
• Industry and company migration as large businesses move into the area
• Strong economic growth and forecast economic growth  
• Job creation  
• Undersupply of properties

Explore our buy-to-let property investments by location:

• Manchester buy-to-let investment property
• Liverpool buy-to-let investment property
• Sheffield buy-to-let investment property
• Birmingham buy-to-let investment property
• London buy-to-let investment property
• Leeds buy-to-let investment property

To receive a personalised recommendation from one of our property experts, why not fill out our quick and easy 60-second buy-to-let investor form?