Top 4 Places with Capital Growth of 20-51%
- Sandra Z
- Apr 20, 2020
- 4 min read
Updated: Apr 21, 2020
In property there are plenty of different strategies that investors follow to get the best out of their investment. One of the most popular ones is a long term ‘buy and hold’ strategy. This way wealth can be created through a period of time investing in property, allowing properties to appreciate in value while also generating cashflow on a monthly basis. This is one of potential strategies that property investors could use to protect themselves from the volatile market.
Depending on how long you are prepared to invest your money into depends on what property to buy. Of course, location plays an essential part in the process! It is key to know where to invest and this is why we are sharing the Top 4 locations in England where the property prices have grown significantly in the last 18 months.
Manchester
The property market in Manchester has generally been praised because of decent yields and steady growth. In some areas, Manchester could even surpass London in terms of property yield, which you can find out more about here.
In the last several years there has been a significant amount of developments and growth in Manchester topped by the strong demand for living space. Based on our data the sold property prices have grown by 22% and 21% in M18 and M6 postcodes respectively since November 2018.
The M18 defines the area of Gorton, Debdale and Abbey Hey in the close proximity of the two popular golf clubs. The current listing prices are showing an upward trend as well, which can be a good sign for investors so far.
The M6 area of Salford in some sources was defined as showcasing the ‘very best in heritage, arts, culture, sport, shopping, relaxation and stunning scenery’. While it must be appealing to many, the upward trend in sold property prices in the area also shows that it could be one of the best places for Manchester property investors.
Liverpool
One of the reasons why Liverpool attracts so many property investors is its low property prices compared to the national average prices, which means that properties in Liverpool could achieve higher yields. Of course, there are areas to avoid and areas to almost throw the money at. Let’s have a look at the latter.
Kirkby (L32) and Bootle (L20) has achieved 24% in capital appreciation in the last 18 months while Seaforth and Litherland (L21) achieved 21%. With property prices ranging from circa £80,000 for a terraced to over £200,000 for a detached property, it offers a variety of options to property investors in these areas.
Birmingham
Some say that Birmingham is a firm favourite place of property investors and it here’s why.
Birmingham is one of the big cities benefiting from a fantastic and improving infrastructure, demand for homes and one of the places attracting a lot of business investment. It is a home to huge financial and professional services sector and is said to be a large innovation hub.
Sadly, like most cities, Birmingham’s supply of homes is lower than the demand. With the forecasts for its population to continue growing, the demand for homes is likely to increase even more.
We also looked into the property market in Birmingham and were shocked to see a huge 32% growth in property prices. Is there a reason why would you not want to invest in Birmingham?
London
Of course, London has to be in this list! London is in a position as a top financial centre which brings property investors from across the globe.
Even in the worst markets conditions, many investors can find an exit strategy in London. The market is often defined as having a significant undersupply, which is the main driver for strong capital growth. Let’s see which two locations in London could bring the biggest returns?
East Finchley (N2). A place perfectly placed in the middle of North London, in among some of the greatest areas north of the river. It is a popular area defined by some as one of the best places to live in London. No wonder the demand in the area is high. We recently noticed an impressive 51% growth in property prices in the area. No other place in England can compete with that!
Stratford (E20)
After being revamped for the 2012 Olympic Games, Stratford has become a shopping and leisure hub. Also, if you are looking for fantastic travel connections, Stratford is the one! The property prices in the area have risen by 71% since 2005 and it currently still remains one of the places of highest demand for property buyers and tenants.
In summary, the property market in the UK is showing positive signs for investors in the long run. While the current climate is uncertain and constantly changing, the historical data always helped the investors make future decisions.
If you are looking to find out what is the expected economic growth of a particular location or wonder which locations in the UK have the highest expected gross yield value, Abricko will help you achieve that.
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