London has topped the list of areas in the UK for property investment, followed by Manchester and Liverpool, finds survey
London has topped the list of cities in the UK where buy-to-let landlords and real estate developers invest their money, according to a survey commissioned by independent property specialist Experience Invest.
The capital is followed by Manchester and Liverpool which occupy the second and third place on the list of cities across the UK for property investment.
While 35 percent of property investors preferred London, Manchester and Liverpool were popular among 33 percent and 25 percent, respectively.
Commuter towns such as Luton attracted significant interest due to greater affordability and prospects. It was ranked ninth on the list, with 11 percent of those quizzed intending to invest in the town.
The research also found that the number of real estate investors in the UK intending to increase the size of their portfolio was more than three times the number of those looking to reduce theirs. While 39 percent of the 500 UK real estate investors quizzed plan to increase the size of their portfolio over the next 12 months, 11 per cent intend to reduce the size of their portfolio.
Among the remaining investors, 35 percent have no intention of buying or selling any property in 2019, whereas 15 percent intend to sell some assets and then reinvest in new properties.
The research found that property investors preferred houses over flats, with 67 percent preferring houses and 54 percent opting for flats.
New build residential properties were the choice of 39 percent of investors, while 24 percent of investors preferred student accommodation for their investment.
Business Development and Acquisitions Director at Experience Invest, Jerald Solis said there had been a spike in interest among investors for properties in London’s commuter towns over the past five years, thanks to the stagnating rate of house price growth in the capital.
As a result, investors and homebuyers alike are looking to commuter towns, such as Luton, which offer excellent transport links into London but with greater affordability and brighter forecasts for price growth. As the Experience Invest research shows, Luton is attracting significant interest in 2019.
Solis said that given the £1.5 billion regeneration currently taking place to upgrade the town centre, including the construction of new builds, this area’s property market is predicted to experience notable growth in the coming year, and this is likely to draw strong investment from buy-to-let landlords in the future.