Riding The Wave - Tips For Successful Property Investing In a Post-pandemic UK
Updated: Sep 21, 2020
The 2020 Coronavirus pandemic knocked the UK property market for a loop. Prices plummeted, high LTV mortgages all but vanished, and (perhaps most astonishingly) the government even imposed a temporary stamp duty relief to try and shock-start the heart of it all - the buyer.
Now the dust is settling (fingers crossed), future predictions are cautiously optimistic. Investors are rearing their heads and putting out feelers once again.
That being said, the situation remains unstable. Buying an investment property in 2020 can be a lucrative decision - as long as you know exactly where to put your money!
Regional Lockdown Performance
Although cities in the South of England witnessed their slowest growth rate in seven years, other areas performed more favourably.
The North of England, for example, defied the doomsday forecasts to retain a steady property growth rate of 3.6% annually.
If you’re considering a property investment in 2020, you’ll want to know the best places to buy and sell in the UK.
Here’s a overview of the highest-performing regions in the country:
Leading independent credit broker TotallyMoney compared nearly 500,000 properties across England, Scotland and Wales. The report focused on yields generated in each area.
Image Source: simplybusiness.co.uk
The stats speak for themselves. The North West had consistent yields, even during the nation-wide lockdown!
Cities with most listings during lockdown:
Liverpool 5,101 listings
Birmingham 4,081 listings
Leeds 3,830 listings
Cornwall 3,673 listings
Leicester 3,180 listings
Exeter 2,914 listings
Durham 2,654 listings
Manchester 2,483 listings
Bristol 2,473 listings
Salford 2,401 listings
As you can see, Liverpool remains high on the list, and has done for many many years. Boasting some of the highest yielding postcodes in the county, this lucrative investment area is not set to be dropping off the leaderboard anytime soon.
Cities that didn’t make the grade
Wherever there are winners, you can be sure there are losers as well - and lockdown was not as kind to some as others.
Alongside its list of high-performing cities, TotallyMoney also assessed those which sadly failed to generate profitable yields.
Surprisingly, many of them are high-traffic areas for commuter.
Right at the bottom of the postcode list is St Albans, AL5. In sharp contrast with cheaper areas like the north, the average buying price here is a cool £800,000 (nope, still not botching those zeros). Worse, the rental yield on this eye-watering investment is just £1,300 - or roughly 1.95%.
Struggling in second-to-last place is W8 in the leafy suburb of Kensington - where the average house price clocks in at almost £2 million, in exchange for a 2.05% yield.
These under-performing regions are close on the heels of RG10 in Reading, GU10 in Guildford, and KT7 in Kingston-upon-Thames.
Fun fact: the anomaly city of Sheffield has managed to score a place in both lists! S1 is in the top ten row, while S7 lets its side down on the lowest ranked list.
Funny things do happen.
Liverpool takes the Cup!
Whether it’s a Premier League victory, or topping the UK property charts during a global pandemic, Liverpool have given 2020 a serious run for its money!
Liverpool’s L1 postcode is the proverbial land of milk and honey when it comes to the UK housing market. Research showed that buy-to-let investors can purchase a property here for as little as £90,000 (no, there isn’t a missing zero) and let it out to tenants for an average of £750.
When you multiply this figure by 12 and divide it by the purchase price, you’re looking at a 10% yield! That’s a pretty solid ROI.
Liverpool also topped the list of cities with the largest selection of property listings during lockdown. And, unsurprisingly, the top ten cities are all North of England regions.
Bring in the Experts
It’s one thing to know where to look when investing in property, but navigating the many potential pitfalls of an unstable market isn’t as easy as it might sound.
To quote James McCaffrey (credit expert at TotallyMoney): “There are pockets of profit for landlords. It seems that Scotland and the North are good places to start a buy-to-let property search.”
However, he also added, “Landlords should always do their research before committing to a property purchase, understanding current market trends is part of that. Making sure they’re financially prepared is another.”
There are a myriad of factors to consider when it comes to property investing, such as whether you are buying to let, or to sell at a profit, what type of property you want to go for, potential for extending/renovating - and the list goes on!
If you want expert advice on local insights and help finding the best property for you, get in touch with Winova Properties . We deal exclusively in the Liverpool housing market (yes, that front-running goldmine) and are here to get you maximum ROI today.