It’s that time of year when the Fabrik Invest team looks ahead beyond the mince pies and mistletoe to see what the New Year is likely to bring in terms of property investment opportunities. Our in-depth market analysis has led us to identify six top UK property hotspots for 2021. Which of these is on your radar for the coming year?
Salford Quays, Manchester
Manchester enjoys a five-year sales price forecast that’s notably higher than the UK average, according to JLL. It has the highest sales price forecast of any UK city, with rents expected to rise strongly as well. That’s on top of rents in the North West rising by 11% over the past 12 months, based on analysis by Home.co.uk, in large part due to supply limitations.
Meanwhile, Telegraph Money and Aldermore have named Manchester as the most attractive location for buy-to-let investors, based on a study of average rent, long-term house price growth, yield, void periods and demand. 31% of the city’s population rents, while low supply levels ensure minimal void periods.
However, the city centre has become over inflated due to an influx of investors, so 2021 will be all about Manchester commuter belt locations, such as Salford Quays. These areas offer all the benefits of Manchester property investment, with affordable price tags.
Average property price: £212,038 (Zoopla)
Ideal 2021 property investment: X1 Michigan Towers, Salford Quays. Stunning, contemporary apartments and townhouses with on-site gym and cinema, in the heart of MediaCityUK, Manchester’s international hub for technology, creativity and innovation.
Princes Dock, Liverpool
As well as the 11% rent rise in the North West, property prices have shot up in the past year. Savills reports that the North West saw higher price rises than any other region in the first half of 2020, while the five-year forecast is for a UK-leading 27.3% increase.
A key investment destination in the North West, Liverpool has attracted major interest as a result of its affordable city centre properties. Looking ahead to 2021, properties with sought-after L1 postcodes are likely to be snapped up, due to the lack of further available land in the city centre. The Princes Dock area is also an important property investment destination, with major regeneration works driving interest.
Average property price: £184,134 (Zoopla)
Ideal 2021 property investment: The Roscoe, Liverpool L1. A boutique collection of 82 beautifully presented one- and two-bedroom apartments in the heart of Liverpool city centre, within walking distance of every amenity.
Jewellery Quarter, Birmingham
With a shortfall of over 30,000 homes projected by 2031, Birmingham simply can’t build fast enough to keep up with demand. With a youthful population and booming tech sector, this fast-paced city presents some superb opportunities for property investors.
The Jewellery Quarter is Birmingham’s most fashionable location, with art galleries and independent shops rubbing shoulders with modern, innovative restaurants and trendy bars. Significant regeneration assures that interest in the area will continue well beyond 2021. Rents across the West Midlands have risen by 14.7% over the past 12 months, according to Home.co.uk.
Average property price: £205,703 (Zoopla)
Ideal 2021 property investment: FiftySixty, Birmingham Jewellery Quarter. A contemporary, design-led development of 44 one- and two-bedroom apartments with communal courtyard and undercroft parking. Located in the heart of the Jewellery Quarter, just a short walk for Birmingham’s Central Business District.
Chatham (London commuter belt)
Between sky-high property prices and the COVID-spawned desire for more space both inside and out, central London has very little to offer buy-to-let investors in 2021. Despite this, the Emerging Trends in Real Estate report from PricewaterhouseCoopers and the Urban Land Institute has flagged up London as the second best city for property investment in Europe. Telegraph Money and Aldermore, meanwhile, have named it the third best location for property investment in the UK.
In 2021, that investment will be all about the commuter belt. Locations like Chatham, with significant local regeneration, swift train journeys into central London and a rapidly growing population, will be the big winners over the coming years.
Average property price: £262,373 (Zoopla)
Ideal 2021 property investment: Chatham Water, Chatham, Kent. One-, two- and three-bedroom apartments in a prime waterfront location that blends premium access to the local area with an easy connection to London.
Since gaining city status in 2002, Preston has been flagged up both as the best place to live and work in the North West and as being among the top ten most gentrified paces in the UK. Investment has poured into the city and the population has grown by 8.4% (between mid-2001 and mid-2017).
With rents rising by 9.5% in the East Midlands over the last 12 months due to limited lettings supply, according to Home.co.uk, the area has plenty to attract investors seeking affordable prices and solid long-term prospects. Plus, the local economy is projected to grow by £1 billion over the coming decade.
Average property price: £205,311 (Zoopla)
Ideal 2021 property investment: Bishopgate Gardens, Preston. An exceptional development of 130 one-, two- and three-bedroom apartments, with shared social spaces including a stylish lounge area, coffee pod café, shared working space, reception area with 24/7 concierge and show-stopping rooftop gardens.
It feels like you can’t open a newspaper property section these days without somebody extolling the virtues of living in Yorkshire. With Savills projecting property price rises of 24.1% over the coming five years for Yorkshire and the Humber, the county capital is worthy of serious consideration as a property investment destination in 2021.
Average property price: £303,256 (Zoopla)
Ideal 2021 property investment: Icona, York. Available as both long-term residences and holiday lets/Airbnb apartments, these 32 one- and two-bedroom apartments, with three spacious penthouses, are ideally located for those looking to enjoy the very best of life in York.
“The UK has some excellent opportunities when it comes to property investment over the coming year. We’re excited to be able to present so many well-researched, solid investment locations for those looking to grow their capital through property in 2021.”
Dale Anderson, Managing Director, Fabrik Invest