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A new year often provides an opportunity to take stock of your current investment and reflect on your ambitions for the year to come. You may be considering new investment opportunities or wondering how the housing investment landscape has changed over the last year.
To help you start your new year with a plan, we’ve identified some investment opportunities which have a lot of potential in 2023.
Apartments or houses?
Whilst traditionally you may have sought out larger properties or single houses, it’s time to think small and explore apartment rentals. Generally, apartments offer a lower capital entry point, higher yields and more of a hands-off, hassle-free investment. With rental prices continuing to increase, young renters will be seeking cost-efficient homes which will undoubtedly continue to increase the popularity of apartments vs houses. Being a more cost-efficient entry point, apartments are a great starter property for new investors.
Student Accommodation
As we’ve covered in a previous article, a handful of northern student cities seem to be leading uk rental yield increases. Including; Newcastle Upon Tyne (Avg. 9.8%), Manchester (avg. 10.1%), Bradford (10.6%) and Nottingham (11.3%). Renting to students often bring higher yields by charging rent per person rather than by property. Student rentals in busy cities will always be in high demand, making for a fast tenant turnover with each new semester.
Looking beyond London
Research suggests that cities in the North and Midlands are becoming the new hot-spots for property investment in the UK. With cities such as Birmingham and Manchester rapidly growing in popularity with both movers and businesses (attracting higher numbers of young professionals) these cities are prime hot-spots to invest in early 2023 before property prices peak with the rising popularity.
Property will always provide great investment opportunities, but it’s vital to be strategic with your investments to ensure you are getting your desired yield. Always conduct thorough research before making a new investment.