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Where to invest in 2015? New figures highlight UK’s property hotspots
November 24, 2014Article by Charlotte Ashton
New figures from the Hometrack UK Cities House Price Index have highlighted the UK’s property hotspots, helping savvy investors to know where to direct their capital in 2015. The figures show that all 20 cities covered by the index registered year on year growth of more than 5%. This is the first time in more than a decade that such positive growth has been recorded by the index, confirming the extent of the UK housing market’s strength.
A growing market
Ray Withers, Chief Executive of specialist property investment company Property Frontiers, comments,
“The latest Hometrack figures speak volumes about the strength of the UK’s property market. All 20 cities showed impressive year on year increases in property values, meaning buy-to-let investors have been able to grow their capital as well as earning rental income over the course of the year.
“Here at Property Frontiers we have used the data alongside various other figures to take a look forward into 2015 and identify the UK’s most exciting property markets for those interested in profiting from buy-to-let accommodation.”
The Property Frontiers number crunching has led to the creation of a top five property investment hotspots list for UK cities.
Top five UK property investment hotspots for 2015
Top of the list is Belfast, where house prices have remained stubbornly at around 45% below their 2007 peak, according to the Office for National Statistics. However, the past 12 months has seen growth of 8.3% in values according to Hometrack and further rises are projected for 2015, making this an ideal city for buy-to-let investors.
Property values have increased by 8.9% over the past year in Oxford, as a perfect storm of lack of new accommodation and increasing numbers of young professionals looking to live in the city has driven up demand at a rate that has far outstripped supply.
The hottest of London’s urban villages, Harrow is tipped to experience major price increases in 2015 and beyond, particularly in light of the proposed Crossrail extension that would see journey times to central London cut by as much as 15 minutes.
Urban regeneration projects are transforming the face of Manchester as the city races towards being one of the UK’s most modern and exciting places to live and work. Prices there have risen by 7.6% in the last year, according to Hometrack, and further increases look likely for 2015, with professionals demanding ever more luxurious buy-to-let accommodation in key areas of the city.
With property value rises of 5.5% recorded by Hometrack, the birthplace of the Beatles is another top tip for buy-to-let investors in 2015. Liverpool has a particularly high proportion of renters, with 51% of the city’s housing stock in the rented sector and over £20 million worth of private rental income generated monthly, according to Direct Line for Business.