Property Market Intel

The Top 5 Best Places To Invest In UK Property In 2022

1

Written by Domenico Davis

Updated over a week ago

In this guide we'll break down where we think the best places are to invest in UK property in 2022. If you're a property investor you've come to the right place as our team puts forward some of their top investment spots for the year ahead. The team along with their own investment knowledge has looked at key factors such as historic rental yields and capital growth.

Leeds

Leeds is one of the major forces of the north and in recent years becoming increasingly known for its attractiveness to property investors. The city has a population of just under 800,000 of which 70% are renting. Making Leeds a property investor's dream if you are looking for strong demand from tenants.


Capital growth has also been strong in the city with data below from HM Land Registry showing consistent property price increases over the last 5 years.


Leeds also has one of the largest student populations in England with 2 large and 3 small universities in the area. Together this creates a population of over 65,500 students. The city also finds itself hosting students from southeast universities looking for cheaper living costs.


For a more detailed look at Leeds, check out our investment area report here

5-year Capital Growth in Leeds

YearAvg sold price+/-
2022£268,090-2.68 %
2021£275,4628.76 %
2020£253,2748.36 %
2019£233,7382.38 %
2018£228,3153.54 %
2017£220,503- %
8.39%
1-year growth
16.39%
3-year growth
22.16%
5-year growth

Average Sold Prices in Leeds

Manchester

Manchester is one of the most hyped investment locations in the UK over the last 5-10 years. The city is living up to the original hype and is established as one of the most exciting investment locations in 2022.


Manchester is becoming a strong alternative to London due to the rapidly growing career opportunities and global business attraction. Manchester has the best student retention rates in the UK keeping more than 60% of graduates. Over 45% of the population is under 35 which is good news for investors based on recent property buying patterns. A recent report by the BBC found that over 1/3 of millennials will now rent their entire lives.


We estimate that rental prices will grow by 12.5% by 2025.


Capital growth in manchester over the last 5 years has been one of the strongest in the North. This trend is expected to continue especially with the progression of high-speed rail projects further connecting the city and exciting investors.


For a more detailed look at Manchester, check out our investment area report here

5-year Capital Growth in Manchester

YearAvg sold price+/-
2022£250,3601.76 %
2021£246,0317.73 %
2020£228,38410.5 %
2019£206,6844.02 %
2018£198,6966.19 %
2017£187,119- %
7.44%
1-year growth
17.38%
3-year growth
27.2%
5-year growth

Average Sold Prices in Manchester

Sheffield

Sheffield is one of our most exciting areas to look at as we believe it will be one of the best cities to invest in over the next 5 years. The city is just at the start of its property cycle and is showing great potential and growth for both rental demand and capital growth.


Zoopla reported that coming out of lockdown property sales were already up 20% YoY.


The city is attracting large global companies such as Roll Royce, Boeing & McLaren who have all set up locations in the new Composites Technology Centre. The introduction of HS2 will also mean that the city is on 87 minutes away from central London.


In response to the increase in skilled jobs, the city is investing upwards of £480 million in developing a new shopping and leisure district and new amenities.


For a more detailed look at Sheffield, check out our investment area report here

5-year Capital Growth in Sheffield

YearAvg sold price+/-
2022£202,099-2.78 %
2021£207,8708.14 %
2020£192,2215.18 %
2019£182,7563.23 %
2018£177,0313.9 %
2017£170,386- %
7.82%
1-year growth
12.86%
3-year growth
19.82%
5-year growth

Average Sold Prices in Sheffield

Liverpool

Liverpool has some of the best performing postcodes in terms of yield and has been a favourite for investors as an alternative to Manchester.


L1 & L7 are the two most popular postcodes for investors. L1 is known as one of the trendiest places to live in the UK and commonly sees annual yields north of 8%. On the other side of the city (L7), the area surrounding the Royal Liverpool Hospital has seen annual yields reach 10%.


Liverpool also houses one of the oldest and highest-ranked universities in the UK meaning a student let investment strategy could be potentially profitable in the city. Edge Hill, Fairfield and Kensington are all popular student areas and see similar returns as L1 & L1.


For a more detailed look at Livepool, check out our investment area report here

5-year Capital Growth in Liverpool

YearAvg sold price+/-
2022£202,910-1.22 %
2021£205,4228.56 %
2020£189,2157.93 %
2019£175,3154.0 %
2018£168,5731.25 %
2017£166,496- %
8.21%
1-year growth
15.82%
3-year growth
20.93%
5-year growth

Average Sold Prices in Liverpool

Bolton

Bolton is one of the largest towns in Europe and its population is expected to grow to over 300,000 by 2043


The town is a key part of the Greater Manchester powerhouse and a key part of Westminsters Northern Powerhouse strategy. Although these plans and developments are not new as the town has been already publishing regeneration plans focusing on retail, tourism & leisure and commercial office space over the last few years.


Leader of Bolton Council, David Greenhalgh, explained to placenorthwest.co.uk that the town must: “embrace innovation and digital technology”, as the best way to stay competitive. Investors should be aware that these initial plans are the start of a much longer and wide-ranging development plan in order to stimulate future growth.


The University of Bolton is also going through a rapid period of growth and is becoming increasingly attractive to students. The current student population stands at around 14,000 but is set to grow to almost 20,000 over the next 3-5 years. Bolton is one of the smallest areas on our list but certainly packs a punch and is worth evaluating for your portfolio.


For a more detailed look at Bolton, check out our investment area report here

5-year Capital Growth in Bolton

YearAvg sold price+/-
2022£214,7771.9 %
2021£210,76311.8 %
2020£188,5157.75 %
2019£174,9563.65 %
2018£168,8013.12 %
2017£163,690- %
11.14%
1-year growth
18.57%
3-year growth
25.14%
5-year growth

Average Sold Prices in Bolton

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