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Which cities are most attractive for property investment in 2020? Landlords have their say

2-minute read

Which cities are most attractive for property investment in 2020? Landlords have their say
Sam Bromley

Sam Bromley

14 February 2020

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London, Manchester and Liverpool have been named by landlords as the most attractive cities for property investment in 2020.

The Simply Business survey also reveals attitudes to the buy-to-let market in general, which has been hit by a series of legislative changes over the last few years.

  • What’s the average rent in Manchester?
  • London rent prices: which areas have the highest and lowest average prices?
  • Where can landlords get the best rental yields (and what does that mean?)
  • How much does landlord insurance cost?

Which cities have the best investment opportunities for landlords?

We asked 799 UK landlords which cities in the UK they believe have the best investment opportunities this year.

The capital and the North West have performed strongly – London and Manchester came joint first, while Birmingham and Liverpool were joint second. London and Manchester combined received over a third of the total vote (at 18 per cent each), while Birmingham and Liverpool each got 10 per cent of the vote.

Here’s the full breakdown:

  • London and Manchester (joint first)
  • Birmingham and Liverpool (joint second)
  • Edinburgh
  • Bristol
  • Leeds
  • Oxford
  • Glasgow
  • Cardiff
  • Southampton
  • Sheffield

But London house prices fell 1.8 per cent in 2019

While the capital’s housing stock usually retains strong value, London house prices fell 1.8 per cent in 2019, ending the year as the weakest performing region in the UK (according to the Nationwide House Price Index).

Our survey suggests, however, that existing landlords may be recognising this as an opportunity to acquire more properties in the capital.

Heading north, Manchester’s buy-to-let market is supported by the city’s strong student population and burgeoning media scene.

With the rest of the list comprising a varied mix of areas across the country, buy-to-let prosperity could be set to spread across the UK in 2020.

’Landlords are crucial to the UK economy’

Bea Montoya, Chief Operating Officer at Simply Business commented: “Buy-to-let landlords are crucial to the UK economy, contributing a combined £16.1 billion through pre-tax spending. The sector also now houses 20 per cent of British households and has a huge presence up and down the country, so it’s wholly encouraging that landlords view a broad spread of regions as attractive areas to invest this year.

“London usually comes out on top for being the most expensive city to invest in property in the UK, but falling house prices are making it an attractive place to invest once again.

“We know a quarter of landlords are planning to sell at least one property this year, largely due to government reform and tax changes, so it’s reassuring to see that landlords are still eying up investment opportunities up and down the country.”

Our survey reflects similar research from TotallyMoney, which includes areas in Liverpool, Glasgow and Cardiff in its best 25 areas for buy-to-let in the UK.

What do you think about our latest research? Does this reflect your own experience with buy-to-let? Let us know in the comments below.

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