x
By using this website, you agree to our use of cookies to enhance your experience.

TODAY'S OTHER NEWS

Should buy-to-let investors look to Nuneaton?

Properties in Nuneaton and Bedworth, Stockport and Leicester show significant potential for capital growth after seeing double-digit house price growth in the last year.

That is according to Post Office Money, which analysed Office for National Statistics (ONS) data to examine house prices and first-time buyer affordability in over 80 locations across the UK to reveal the best locations for aspiring buy-to-let investors.

Although house price growth has continued across the country, it has stagnated in the last year to an increase of just 0.9% across the UK, with the average home costing £282,713.

Advertisement

Chrysanthy Pispinis, director at Post Office Money, says rental income and opportunity for capital growth should be ‘fully explored’ in the mid to long term in order to evaluate the best locations when property searching.

“The market as a whole may have slowed in the last year but many locations, especially in the Midlands and North, are continuing to see significant house price growth,” she adds.

“These properties are potentially good mid-term investments, particularly as they sit in locations that continue to be affordable, even for first-time buyers, which can be a great indication of future growth hotspots.”

Despite the slowdown in southern market, key cities in the Midlands and the North of the UK continue to thrive. Cities continuing to see growth include Cardiff (9%), Sheffield (7%), Nottingham and Birmingham (6%).

Pispinis concludes: “The number of households renting in the UK has increased from 2.8 million in 2007 to 4.5 million in 2017, a rise of 1.7 million (63%). This shows that there is still a real need for buy-to-let properties and therefore an opportunity for those looking for a New Year investment.”

Post Office Money also revealed its top tips when investing in property in 2020, which we’ve reproduced in full below:

Consider the long-term growth

If you are investing for the long-term with the aim of benefiting from market growth, check that your hotspot has seen growth recently, as many areas – particularly in London and the South East – have seen growth stagnate.

Know your area

You will also need to be aware of what is happening that may impact future growth. Consider any investment happening locally such as new schools or big businesses moving into the area. Such investment likely signifies the area is on the up.

Know your audience

If you are buying near schools then your audience is likely to be young families, so buying a one bedroom flat won’t meet the demand of the average family. Think about your potential tenant and their needs then make sure the investment matches that.

Get a mortgage in principle

Viewing properties and having a mortgage in principle ready will put you on the front foot, as you will be ready to move as soon as you find your perfect investment.

Ensure you know the local ‘rate of sale’

Knowing how fast your market is moving is a good indication of demand. This will not only highlight how quickly you will need to move to secure your investment but will let you know how that market is performing.

icon

Please login to comment

MovePal MovePal MovePal
sign up