UK’s Top 10 Best and Worst Areas to Invest in 2017

Top 10 Best and Worst Areas to Invest in 2017

While investing in bricks and mortar is as reliable an investment as ever, securing the best income is reliant on a range of factors. One of the key things is buying a property in an area that offers the best rental yields and potential for capital growth.

Although London has long been seen as a solid choice, with prices rising at eye-watering rates savvy investors are looking further afield to achieve the best returns. But knowing just where to pick can be tricky, involving a lot of research.

At Aspen Woolf, we consider it our responsibility to monitor the trends and conditions within the property industry, in order to give our clients the best recommendations. Here’s what our founder and director, Oliver Ramsden had to say recently about the current state of the market:

Top 10 Best and Worst Areas to Invest in 2017

“The UK property market stayed strong in 2016 despite a turbulent year, with confidence remaining in the buy-to-let sector in particular.

Rental growth increased but at a slower rate than 2015; this was to be expected however, notably due to the unexpected Brexit result stalling market movement for a short period.

House prices should start to increase above the 3% mark again in 2017, especially in buy-to-let ‘hotspots’ which we have identified.”

By analysing market activity and data from recent years, we have identified the following parts of the UK as being the top 10 buy-to-let hotspots in 2017:

Top 10 Best Areas to Invest in 2017

The 10 Best Postcode Areas to Invest In 2017

Postcode AreaAreaAverage value of propertyNo. of sales in the last 12 monthsCurrent average asking priceCurrent average rental price (pcm)Buy to let yield (%)
 M Manchester £177,686 11625 £202,484 £1,339 7.94
 CF Cardiff £187,337 12356 £173,850 £1,054 7.28
 LS Leeds £225,551 10339 £204,072 £1,217 7.16
 L Liverpool £164,590 6859 £175,641 £1,027 7.02
 WS Walsall £195,383 4995 £193,944 £1,106 6.84
 NE Newcastle upon Tyne £184,224 12850 £173,666 £873 6.03
 S Sheffield £194,673 6693 £180,126 £888 5.92
 G Glasgow £182,716 16454 £165,046 £786 5.71
 B Birmingham £189,898 10396 £203,990 £921 5.42
 SR Sunderland £134,891 2282 £133,028 £587 5.3

 

As well as knowing the best places to invest, it is also worth being aware of the postcodes you might want to avoid. For example, April 2016 saw rents peak in the London letting market, showing signs of the market in the UK capital weakening.

“We forecast this trend to continue, especially within prime central London, hence have identified West Central London, or the WC postcode, as the top UK location to avoid in 2017,”

Here are the areas that our research has shown to be the top 10 worst performing buy-to-let areas in the country:

Top 10 Worst Areas to Invest in 2017

The 10 Worst Postcode Areas to Invest in 2017

Postcode AreaAreaAverage value of propertyNo. of sales in the last 12 monthsCurrent average asking priceCurrent average rental price (pcm)Buy to let yield (%)
WCWestern Central London £936,660 Not available £1,486,208 £2,877 2.32
BRBromley £547,661 4121 £633,812 £1,287 2.44
LDLlandrindod Wells £215,894 556 £247,659 £514 2.49
WDWatford £563,462 3147 £678,837 £1,452 2.57
SGStevenage £414,561 5972 £476,816 £1,053 2.65
HRHereford £267,871 2217 £306,503 £692 2.71
ALSt Albans £595,386 3271 £667,922 £1,521 2.73
CBCambridge £416,239 5322 £446,454 £1,020 2.74
EXExeter £290,770 9139 £315,125 £736 2.8
WRWorcester £281,073 4254 £288,729 £674 2.8

 

By knowing the top performing places in the UK, and taking into account the worst performers too, you can decide which area presents the best prospects for your future investment. To help narrow down the best possible investment in the city of your choice, it is always worth asking a knowledgeable agent to go through their top recommendation to maximise your returns.

If you found this article helpful, you may also be interested in reading Student Property Investment Still Hot in 2017 and Dubai is Being Hailed the Top Investment Spot for 2017.

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