Buying and selling property in the British property market has always been a lucrative opportunity for investors, and it is so even more in 2020.

With the ability to obtain a regular income and long-term growth, even during times of global uncertainty, buying property in the UK has long been and is still known as one of the world’s most trusted assets. 

So for those looking to invest for the first time to enhance their portfolio, the following is a list of the best localities for property investment in the UK. 

Manchester

Manchester property investment continues to attract high levels of demand from international buyers.

The northwestern city is one of the most in-demand in all of Europe, becoming a hub for opportunity, growth and stability. 

Over the past 19 years, Manchester’s population has ballooned from only 3,000 in 2001, to over 60,000 this year. Move than 2,000 foreign-owned companies have set up their headquarters in Greater Manchester, with the city’s economy expanding at a faster rate compared to the UK’s overall.

As a result, Manchester’s property market has experienced a boom. JLL estimates that Manchester’s city centre requires 2,500 new-build residential spaces each year just to keep up with demand. 

Data from Zoopla indicates that in the rental sector during the second quarter of 2020, there was a 5:1 demand to supply ratio for rental properties in the city. 

Moreover, property in the northwestern region is expected to see the strongest price growth by 2024 compared to any other area in Britain. 

Cardiff

Purpose-built student accommodation (PBSA) is one of the most robust divisions of the property market in Europe. Cardiff in particular, is currently enjoying some of the highest yields and long-term returns from student property in all of the UK.

The Welsh capital has witnessed a spike in its student population and as a result, demand for PBSA has skyrocketed, increasing 137% since 2010/11. 

Cardiff is home to three universities and is also an up-and-coming cosmopolitan city, meaning it does not only attract local students, but also several from overseas.

Knight Frank labels Cardiff as an “emerging market” – one that is “characterized by good universities but low PBSA stock availability.”

As a result, the prices of annual student accommodation surged 8.5% in 2017/18, marking the highest rate of increase in the UK. Cardiff is becoming one of the fastest-increasing choice for global investors. 

Birmingham

Similar to Manchester, Birmingham is a popular choice among investors who are looking to invest in property outside of the capital.

The city centre’s population has soared over the past twenty years. According to Centre for Cities, Birmingham witnessed a 163% rise in population between 2002 and 2015. 

Its optimal geographic location, paired with stellar domestic and international transport links, several global businesses have shifted their operations to Birmingham. 

The city’s economy is also the fastest growing in all the West Midlands, and is expected to continue escalating at a high rate for the next decade.

The development of the UK’s High-Speed 2 (HS2) rail line will likely positively impact the city’s growth even further. Already at the centre of the rail development and a hub for business opportunity, preliminary data for the project foresees a £4 billion increase in economic turnover per year for the West Midlands as a result of the HS2.