The UK property investment market is performing well and all indications for the future are positive. Even during a period of economic and political uncertainty, it is striking how much confidence is flowing through the sector.
Even though the Office for National Statistics reports that the national average pace of house price growth has slowed very slightly, a survey conducted by Experience Invest shows that almost 40% of landlords are planning to increase the size of their portfolios in 2019, with a further 35% planning to keep theirs the same size and only 11% intending to sell properties.
Of those who are looking to expand their portfolios this year, the most popular investment destinations are London (35%), Manchester (33%) and Liverpool (25%). As the two largest cities in the North West, one of the UK’s premier buy to let regions, the presence of Manchester and Liverpool at the top of most people’s wish lists is understandable. In contrast, the capital has been going through a tough period, but most reports agree that rents in the city are growing again and investor confidence is returning – a point of view seemingly reinforced by the research from Experience.
Other cities proving popular with investors include Nottingham (15%), Leeds (13%), Birmingham and Newcastle (both 12%), Luton (11%), and Brighton, Edinburgh, Glasgow and Sheffield (all 8%).
The research also looks at what type of properties are set to be popular with buy to let investors in 2019. More than two thirds of those investors looking to purchase a new property (67%) would consider a house and more than half (54%) are interested in flats. New build residential (34%) and student accommodation (24%) are also popular options.
The reality is that buy to let property remains an incredibly popular choice for investors from around the world. The fundamentals of the sector are solid and the potential for future growth is impressive.
As always with buy to let investment, the key is to ignore the overarching headlines and look more closely at the available data. While the average pace of growth may be slowing, that should not be enough to discount investment in specific markets. The overall picture does not tell the whole story and there are still fantastic deals to be made in markets such as Manchester, Liverpool and London where growth is continuing at pace.
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