The 4 Best UK Property Investment Locations 2023

If you’re thinking of making an off-plan property investment, but unsure of the best Uk investment property locations, this is the blog for you! With UK house prices soaring to record-highs over the last few years, off-plan homes have become one of the best ways to secure property at a reasonable price. But like any property investment, finding a nice property is only one part of the equation – you also need to consider its location. Location is perhaps the most important factor when it comes to buying an off-plan property, with an area dictating potential capital growth, demand, and rental yields.

So where should you invest in off-plan? In this blog, we’ll discuss four of the best up-and-coming off-plan property investment locations in 2023. Let’s get into it: 

Why Is Manchester The Hottest Buy To Let Location?

Located in the heart of the Northern Powerhouse, Manchester is one of the best places to invest in off-plan property in 2023.

The city of Manchester has been a hotbed of development in recent years, with the city undergoing a transformation due to a series of large-scale regeneration projects like Spinningfields, NOMA, and MediaCityUK. 

These projects have helped to attract thousands of businesses, students, and young professionals to the city, leading to a huge uplift in rental demand.

In fact, Greater Manchester is now the largest city region economy outside of London, with a massive GVA of £62.8bn. It’s set to get even better too, with predictions from Oxford Economics suggesting that Manchester will see the highest rate of economic growth out of all the major UK cities over the next five years – an incredible 16.4% GVA growth.

So, why does this matter to investors? Well, a city on the rise means a growth in house prices and rental demand. Manchester has already seen some incredible capital growth, with the average home soaring by 296.9% since 2002.

And despite this growth, Manchester house prices are still affordable. 

According to official Land Registry data from the UK House Price Index, the average house price in Manchester was £238,861 in December 2022 (although you can expect a far lower price tag for an off-plan home). This is an incredible 18.8% below the average UK property price. 

For the most effective results in Manchester, be sure to consider areas with a high population of young professionals in the city centre. This includes the likes of Uptown, Deansgate, and the Northern Quarter.

Why Is Birmingham A Great Investment Property Location?

Widely known as the UK’s second city due to its size, Birmingham is one of the UK’s best places to invest. The city is ripe for investment in 2023, with huge growth potential, high demand, and affordable house prices all on offer. 

Around 40% of the city’s population is under 25, with the total population skyrocketing by 163% between 2002 and 2015, according to the ONS. Many residents flock to the city thanks to the job opportunities on offer, with Birmingham home to the largest business and financial hub outside of London.

Regeneration initiatives like the Big City Plan and HS2 are set to create a further 80,000 jobs. Is it any wonder JLL has predicted Birmingham will see the highest house price growth over the next five years? 4.9% per year!

Like Manchester, Birmingham continues to be an affordable option for investors. As of December 2022, the Land Registry recorded an average property price of £239,016 – a whopping 13.6% higher than 12 months ago and over 55% cheaper than London.

Rent and rental yields are also second to none. The West Midlands powerhouse boasts an average rent of £1,541 per month in March 2023, according to Home.co.uk – that’s an average gross rental yield of 7.7%.

In comparison, the average UK rent is £1,175, generating a rental yield of just 4.8%. And again, with off-plan homes being even cheaper, you can expect far higher rental returns on your Birmingham property investment.

So, where should you invest in Birmingham? Like most cities, you can find the highest returns in inner city areas, with the historic Jewellery Quarter acting as the jewel in Birmingham’s investment crown.. There are currently two major off-plan developments in the area, with the likes of the Colmore and Scholars Quarter offering huge return potential in the coming years.

Why Invest In Liverpool?

If you’re looking for an affordable location primed for considerable growth, Liverpool property investment should be at the top of your off-plan shopping list. The North West city remains one of the UK’s most cost-friendly cities, with an average price of just £183,512 – £110k below the UK average!

And you’re getting a lot of bang for your buck with these low prices. In fact, Liverpool homes have soared in value with a considerable 14% rise in the last 12 months alone. Further predictions of an 11.7% rise in North West house prices is estimated by 2027, according to Savills.

It shouldn’t be any surprise that the city has seen such massive growth. Liverpool was voted among the top 10 global locations for business start-ups, with 75% of inner city residents aged between 17 and 29. This is the perfect rental age, making an off-plan buy-to-let investment a smart choice.

Regeneration has been a major part of this growth, with £700m invested in upgrading 119 assets across the city. A further £800m is anticipated over the next five years, with multi-billion-pound projects like Liverpool Waters set to spark further growth in the city’s housing and rental market.

The best areas to invest in off-plan within Liverpool are centred around these inner-city regeneration projects. Areas like the Baltic Triangle and the Knowledge Quarter should be considered, with Liverpool’s L1 city centre postcode known to achieve yields as high as 10% in the past.

Why Is York The Best Location For Serviced Accommodation Investment?

Last but certainly not least in our list of the best off-plan hotspots in 2023 is the historic city of York. Boasting a rich cultural heritage, the city is a popular destination for tourists, with 6.9 million visitors each year exploring York’s stunning streets adorned with mediaeval architecture.

While this influx of tourists leaves a great opportunity for short-term rental properties, the city is also perfect for all-year-round returns. Prices are slightly higher than other entries on this list, with an average price tag of £329,398. But you’re getting some seriously impressive returns for this entry price.

In fact, York homes increased in value by a staggering £33k in just 12 months. And York is also set for huge further growth, with the Yorkshire region predicted to have the joint-highest house price growth over the next five years alongside the North West, according to Savills.

This growth has been sparked by huge regeneration and an ideal commuting location. The York Central project is one of the UK’s largest brownfield regeneration sites, which is set to create 6,500 new jobs and a £1.16 billion boost to the local economy.

Meanwhile, its location allows an ideal home for commuters, with frequent train services to major locations like London, Edinburgh, Leeds, and Manchester. Young professionals also have plenty of opportunities within the city, with a budding tech scene aided by an extensive park-and-ride system for easy travel. 

For effective investments, the likes of Hungate is located on the east side and has seen some major developments of apartments and townhouses springing up. Other off-plan investments in York offer modern living blended with historic architecture, making the city a popular choice for new buyers and young professional renters. 

Invest in Off-Plan Properties With Redmayne Smith

Off-plan property investment can be a complex process, with many factors to consider before making a purchase. That’s where a real estate investment expert like Redmayne Smith can help investors build and manage their property portfolios.

We guide investors through the legal and financial process of purchasing off-plan property, helping to ensure smooth investment transactions. With our team of experts we can help to remove barriers to investment and help with processes like setting up a limited company or releasing pension funds to leverage investment finance. 

Excitingly, we offer exclusive off-plan developments in all of the city’s mentioned on this list, like Manchester, Birmingham, and Liverpool, each coming with huge growth potential.

With a track record of success, we provide in-depth market analysis, property sourcing, and recommendations and investment strategy. Our advisors work closely with clients to understand investment goals, and to identify opportunities that are best suited to their needs with a detailed 31-step process.

Contact us today to get started with off-plan investment.