Content Property Investment Hotspots 2021
4 Birmingham
10
Manchester
16
Liverpool
22
Newcastle
28
Preston
34
Price List & Projected Growth
38
Property Investment Hotspots 2021
O
ver the past 24 months, the UK property market has
endured changing economic and political climates and remains to be incredibly resilient.
...
2019 brought political
upwards – every region in the
uncertainty and Brexit
country recorded an increase in
lingered over the UK,
house prices in 2020.
after the decisive election result in December 2019
Economic forecasters have
the property market
had their work cut out for
began 2020 with relative
them, often contradicting one
optimism and the ‘Boris
another, and the data being
Bounce’ triggered activity.
released by the press is equally confusing.
As the pandemic took hold and the UK entered
Here we provide a balanced
lockdown the property
view based on the gathering
market was effectively put
and assessment of all the
on pause though a limited
facts and figures to share with
number of transactions
you’re the property investment
completed and off plan
hotspots 2021 – where you
purchases were agreed
should invest.
during this time. Upon reopening in midMay the UK property market saw pent up demand unleashed which has driven price growth
Birmingham
B
irmingham has a lot to offer as an
investment prospect. The city is home to several world-class businesses, has five universities, one of the youngest populations in Europe, and a thriving, future-proof economy. Outside of London, Birmingham is the UK’s most populous city and is located within the West Midlands which is the largest regional economy outside of the capital.
In terms of strategic position, there are few locations that are so well connected – Birmingham is around 4 hours away from 90% of the UK’s population and businesses. The city centre has seen significant regeneration in recent years and there is a raft of projects in the pipeline. Transport improvements including the Midlands Metro extension and HS2 are on their way and in 2022 Birmingham will host the Commonwealth Games. A recent report by global real estate company JLL forecasts cumulative sales price growth of 16.5% over the next 5 years and cumulative rental growth of 15.9% over the same period.
The future is bright for Birmingham.
Manchester
M
anchester continues
The city is a leading European
to be one of the UK’s
business destination and has
top performing investment
attracted more foreign direct
cities. Though it’s been an
investment (FDI) than any
investment hotspot for some
other city in the UK outside
time Manchester still offers
of London. Regeneration
an exciting opportunity
continues across the city,
for investors.
including a £1.4billion development which works began on in December 2020.
As one of the most
Below average house prices
established large cities
and high rental yields together
outside of the capital,
with the potential for impressive
Manchester has attracted
capital growth make this
young professionals in high
Northern powerhouse hard for
numbers; between 2002 and
investors to overlook. Global
2015 employment numbers
real estate agent Jones Lang
grew by 84%. The economy
LaSalle recently forecast that
in Manchester is growing at
Manchester will see the highest
an incredible rate with no
sales price growth and rental
signs of slowing down.
price growth in the UK over the next five years at 17.1% and 16.5% respectively.
Liverpool
L
ocated just 30 miles from Manchester,
Liverpool is a clear investment hotspot for 2021 with exciting potential for capital growth and some of the highest rental yields available in the UK. Property prices in Liverpool are significantly lower than nearby Manchester and whilst price growth has been a little slower than other investment locations in recent years the average yields in some postcode areas are as high as double digit figures.
Beloved for its culture
the greatest impact on the
Liverpool is also a growing
city, creating new spaces,
business hub with the city’s
attracting more tourists and
service sector increasing in
expected to create 17,000
size and the redeveloped
new jobs.
docklands offering new opportunities.
The price growth prediction for Liverpool over the next
There is continued city-wide
5 years is 13.1% and the
regeneration taking place
cumulative rental price
and plans in the pipeline.
growth expectation is 14.8%.
The £5.5billion Liverpool Waters scheme is set to have
Newcastle
W
here some might sit back and want
to watch, waiting to see what will happen next, an astute investor will recognise potential and invest before others in order to make the greatest possible return. Newcastle is a city that in 2021 offers investors a rare opportunity to secure property just before that crucial tipping point.
Forward-thinking Newcastle
10,000 staff together –
is gaining momentum as an
the retention of graduates
innovation centre for the
is also strong meaning
UK as just one of only six
increasing numbers of
designated Science cities in
skilled workers are basing
the country with excellence
themselves in the city.
centres focussing on offshore engineering, energy systems,
Central Newcastle average
life sciences and big data.
yields are higher than average with steady
The city is also established
increases across both
as a top location for digital
rental price growth and
businesses, in January 2020
property price growth over
the BBC chose the city to
the next few years – if
be the location of its design
you’re looking to diversify
and technology hub. Across
your portfolio and include
all industries, the forecast is
a location in the North
for 14,000 jobs to be created
East region then Newcastle
over the next few years
is the place to invest.
spurring on tenant demand. The two universities have a total student body of around 45,000 and employ around
Preston
T
hose who’ve worked
employment rate of around
with Thirlmere Deacon
80% and the demand for
for some time will know
quality apartments is strong.
that we champion tertiary locations, areas that sit
Key employers include the
within a short commute
local university, the NHS
of the bigger city offering
and technical manufacturing
investors low entry price
businesses in the area such
points, strong yields and
as BAE systems which attract
potential for capital growth.
highly skilled workers.
Preston is one such location. Preston is one of the most Located in the North West
inexpensive investment
region just 27 miles from
hotspots to consider in 2021
both Manchester and
yet offers yields of around
Liverpool, Preston is very
7% in city centre locations
well connected whilst also
and strong potential for
being a busy business hub
capital growth.
itself. Preston has a high
Manchester - M6
Liverpool - L1
Birmingham - B9
Newcastle - NE6
Preston - PR1
£ 195, 274. 00
£ 118, 515. 00
£ 155, 249. 00
£ 133, 258. 00
£ 131, 569. 00
Predicted price growth over next 5 years (Savills)
27.30%
27.30%
21.70%
21.70%
27.30%
Average current rental yield (propertydata)
5.50%
7.00%
5.20%
7.20%
5.70%
Predicted price growth (propertydata)
27%
19%
22%
16%
19%
Average current price (propertydata)
Price List & Projected Growth
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