Despite a tough economy and the continued, phased introduction of tough new tax rules, buy-to-let is still a sound investment that is set to remain popular in 2017. For landlords looking to acquire properties over the course of the coming year some locations, as ever, will be better choices than others. According to current forecasts, the following areas are on track to be this year’s buy-to-let star performers:
This entry on the list will no doubt come as a surprise to many, but Inverness is a prime example of an oft-overlooked part of the country that is nonetheless home to a strong property market. Partly thanks to the boost the area gets from the oil industry, there is steady rental demand and, according to data from Zoopla, prices have risen over 5% in the past year to an average of just under £184,000.
Hull is currently in a position that leads some experts to believe the city has a lot of potential for the coming year. Yields in Hull are already strong, and they city has the benefit of a fair amount recent and ongoing investment. Not least of these is the £310 million that electronics giant Siemens has poured into its new wind turbine manufacturing facility there – the largest single raft of investment Hull has seen since Victoria was on the throne. Hull has also recently got a turn at being the UK’s Capital of Culture, which is also boosting attention for the city.
In many ways, Stockport punches above its weight as a buy-to-let property investment hotspot right now. Direct rail links to some of the UK’s most major cities including London, Liverpool, Birmingham and Manchester carry distinct benefits for the smaller Stockport. The city is also currently undergoing major investment including £1 billion for a mix of residential, commercial, and retail developments and £42 million for a new transport interchange. Stockport currently offers 4.2% average rental yields and has experienced 4.3% capital growth over the past 12 months, and many expect these figures to strengthen through 2017.
Leeds has already seen its properties grow in value by 6% to a total of £150,000 over the past year, but many experts believe there is still a lot of opportunity left for investors in the city. As well as some major upcoming regeneration projects, the new high-speed rail line HS2 will likely carry big benefits for the city and will probably spark significant further investment. Furthermore, it is a key location for investors in student property, thanks to four separate universities and the fourth biggest student population in the UK.
Manchester is perhaps the number one candidate for 2017’s biggest and best buy-to-let market. It is at the very forefront of the Northern Powerhouse initiative, and is therefore set to receive spectacular amounts of investment across key geographical and economic areas. All this is coming to a city which is already a strong property market and popular investment spot, thanks to a fast-growing population and relatively low supply. The past year has seen properties in the city achieve capital gains of 4.4%, and rents rise by 2.6% for an impressive total yield of 6.2%.