In line with the latest Hometrack report, we have compiled a list of the Top 10 UK cities for capital growth. Read this article to explore each city, and find out what makes each of them such a hotspot for capital appreciation.
If you are interested in learning which investment location best suits your budget, strategy, and long-term goals, reply to this email to book an appointment with us today.
Click on the links below for more information on the premium properties we have in these immensely lucrative locations.
1. Nottingham
Topping the chart with an accessible average house price of £201,600, Nottingham has experienced a Year-on-Year house price growth of 7.8% since January 2022.
Underpinning Nottingham’s success is its strong economy, which is the seventh-largest in the United Kingdom with a GDP of £24.9 billion – outperforming the likes of Birmingham, Liverpool and Sheffield.
Nottingham benefits from both low house prices and high rental yields, with average yields ranging between 6-8%. Home to the prestigious University of Nottingham and over 50 headquarters of major businesses, it is no surprise that Nottingham’s student and business scenes are both thriving.
Learn more: Buy-to-let in Nottingham
2. Manchester
Second on the list is Manchester, one of the most famous northern cities with a proud industrial heritage. With an average house price of £219,800 and a Year-on-Year house price growth of 6.8% to January, the city is clearly benefitting from its position at the heart of the Northern Powerhouse regeneration project.
Manchester’s thriving economy has been boosted by a growing population of educated and highly skilled professionals, leading to an increase in demand for high-quality residences in central areas.
Check out our new Berkeley Square Manchester Development near MediaCityUK – a stunning collection of waterfront residential apartments offering a 7% projected yield. With prices from just £198,000 and a low deposit level of 25%, this high-class development offers an unrivalled 5* resort standard finish & amenities.
Learn more: Buy-to-let in Manchester
3. Liverpool
Hot on the heels of Manchester is one of the best-known cities for property investment in the UK – Liverpool. The city has experienced Year-on-Year capital growth of 6.5% since January 2022 and despite this growth maintains a very low average house price of £155,800.
Savills 2023-27 UK Forecast suggests that property values in the northwest will increase by 11.4% by 2027. The latest JLL Residential Forecast predicts that rental prices in Liverpool will increase by 10% by 2025.
Take a look at our stunning Liverpool development, Cavendish Waters, featuring an elegant selection of apartments with balconies overlooking both the tranquil waterfront of Stanley Dock and Liverpool’s iconic skyline. With low entry prices of £152,000, a low deposit level of 20% and an anticipated yield of 7%, this investment option is sure to sell out fast.
Learn more: Buy-to-let in Liverpool
4. Birmingham
Birmingham has enjoyed Year-on-Year capital growth of 7.5% to January 2023 and is one of the Northern Powerhouse’s biggest achievements, with a thriving economy, world-class educational facilities and business & retail sectors that draw investors and residents from all over the world.
With a population of over 1.1 million, future growth plans, and a high number of private renters, it’s no wonder property investment in Birmingham has become increasingly popular. The current average house price across the city is £206,100, making it ideal.
Are you looking for a fully complete & ready to let Birmingham property to give you an immediate income-generating asset? Our elegant development Digbeth One_2 fits the bill to perfection. Situated in the Heart of Birmingham’s Creative Quarter and priced from £228,000, these apartments will generate an estimated 5% Rental Yield.
Learn more: Buy-to-let in Birmingham
5. Leicester
Fifth on the list is Leicester, a city with a sizable student population owing to its two world-class Universities, creating a strong market for student accommodation investments. The average house price in Leicester is £226,800, with Year-on-Year capital growth of 7.3% since January 2022.
Short-term let units are well-supported by Leicester’s close proximity to the foothills of the peak district. Regeneration projects worth over £2 billion have transformed the city centre by improving connectivity and high-quality public realm improvements. and significant public and private investment in the region.
Canal Side is our latest incredible investment option in Leicester. Located in a prime city centre area and priced from only £193,000, this investment option offers 8% assured rental returns for 10 years.
Learn more: Buy-to-let in Leicester
6. Leeds
The city of Leeds has a current average property value of £207,200, with prices having risen 6% Year-on-Year since January 2022. Leeds enjoys one of the largest urban areas in the UK outside of London and has a larger economy than many countries in Europe.
Although Leeds has higher property prices than much of West Yorkshire it still has very good value investment property. Leeds property prices still fall well below the national average.
Learn more: Buy-to-let in Leeds
7. Sheffield
With the lowest average house price on this list at £171,300, Sheffield offers investors incredible value for their money. Sheffield is a student-rich city, making it a prime location for both student accommodation and young professionals.
Sheffield residential real estate has experienced price growth of 6% Year-on-Year from January 2022 and the city’s local economy is currently worth around £7bn per year. Sheffield’s economic plan aims for growth in the population of 70,000 before 2025, making it an ideal location for BTL investors.
Our excellent Sheffield development Langford Tower has proven an incredibly popular investment option, with 80% now sold out. Situated in the prime S1 area and featuring a host of high-class amenities, it is incredible that prices start as from as little as £142,500.
Learn more: Buy-to-let in Sheffield
8. Cardiff
Cardiff is a capital city that packs a punch for investors, with prices far more affordable than London and a quality of living that is unrivalled across Wales.
With the current average house price sitting at £254,900 (in comparison to London’s average price of £524,800) and price growth of 6.5% from January 2022, there is a lot of scope for future growth for those investors keen to build appreciation.
Learn more: Buy-to-let in Cardiff
9. Bournemouth
Situated on the breathtaking coast of southern England, Bournemouth is one of the best-connected coastal cities to be found anywhere in the UK, with London Waterloo reachable in just 97 minutes. Property prices have grown by 5% since January 2022.
Bournemouth has a relatively high average house price of £345,100 – but its value and quality of living are incredibly high, with excellent business opportunities, a thriving economy boosted by tourism and first-class educational institutions.
10. Portsmouth
Portsmouth is a unique maritime city and has the prestigious title of being the home of the Royal Navy. It is one of the country’s biggest commercial ports and is Britain’s only island city.
Located minutes away from the picturesque holiday destination of the Isle of Wight, Portsmouth properties are ideally situated for Short-Term Lets.
Portsmouth has an average property price of £286,700, with prices growing 6.2% Year-on-Year from January 2022.
Summary
This blog post is intended to provide a brief overview of some of the best-performing cities for capital growth, but this is only one of many aspects of real estate investment to be given consideration when choosing a property.
Our team at Track Capital are dedicated to helping you learn everything there is to know about any potential investment, giving you the confidence you need to make your investment choice wisely.
If any of these exciting UK cities have piqued your interest, or if you would like to learn more about choosing locations based on their capital growth potential, contact us today.
