What’s the best property investment for 2023?

Forth Action Invest on January 1, 2023

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Photo by Alex D’Alessio on Unsplash

As global real estate investment reached a record annual total of $1.3 trillion in 2021, more people than ever before are eager to dip their toes into the property investing market. But getting the right deal makes for the best property investment.

With low-interest rates and rising inflation, utilising savings as investments is a great way to stop that money from depreciating in a bank account (but you must be aware of any risks before going ahead with investments.) Otherwise, at the current rates, this money is collecting dust and losing value.

The buy-to-let approach to property investment is worth over £1 trillion in the UK and with UK renters expected to outnumber homeowners by 2039, the future of investing looks bright.

Let’s look at some potential property investment moves for 2023 and beyond…

*Please note this blog does not constitute investment advice. Conducting your own due diligence and being aware of risks before making any investment is key. Seeking independent financial advice may be appropriate.

Is 2023 a good year to invest in property?

The last couple of years have been filled with many unexpected turns and while the world continues to adjust to post-Covid life, the property market cannot be accurately predicted.

But that’s always the case. This is a question that is asked each and every year, with no concrete answer able to be given.

The property market endures various ups and downs throughout each year. But just like with any investment, the short-term dips only matter if you choose to sell during that moment. It’s the same with other styles of investing – namely stocks and shares. 

If you’re in it for the long-term, this gives you the opportunity to wait for the markets to increase again and for house prices to rise or recover. 

In 2021 and 2022, the markets were booming. Rents increased by 8.3% in the final three months of 2021, which accounts for the fastest rise in a decade. And there’s still a huge demand from tenants and not enough supply.

With more people turning to renting rather than home ownership, along with the increasing population, there will always be a need for rental properties.

There’s a strong certainty that your property could generate rental income, which could provide a nice amount of pocket money every month. Even more so when you partner with specialists like Forth Action Invest who offer a ‘Guaranteed Rent Scheme.’ 

Which areas have the best property investment opportunities?

This is an exciting time within the rental market, with opportunities popping up in various cities and areas across the UK.

And the demand is there. At the start of 2022, the number of people searching for a property (as tenants) was 76% higher than during the same period between 2018 and 2021.

This trend towards renting was likely spurred on by lockdown, with more people wanting their own space after sharing with others in close proximity during complicated times. Many people are also looking to try out new areas or find renting easier while in different periods of their lives. 

This demand means there’s now intense competition amongst tenants, with people snapping up rental contracts much quicker than they did in previous years.

Photo by Naomi Hébert on Unsplash 

While the London market is often sought-after by luxury investors, other regions across the UK are set to outpace the capital city’s projections.

According to key research, the North West is set to see the highest regional price growth (at 28%) over the next five years (between 2021 – 2025.)

The North East is next on the list with an overall increase of 24%, as is the East Midlands (24%) and West Midlands (24%.)

The South East is expected to see a 19% increase over the five years, with London coming in last at a 12% rise.

Why is the North West one of the best property investment locations?

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The North West of England consists of five counties: Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside.

Aside from the price growth predictions, the North West has already provided one of the strongest annual rental price growth results, with more funding and exciting projects being pumped into the area over the next few years.

With the North West expected to lead UK house price growth, it’s no surprise that businesses and people are moving to the north. 

Take Salford, for example, which has become a major hub for operations in the BBC, TalkTalk and ITV. The BBC is set to expand its operations across the north as well. 

And it’s not just big businesses that are popping up in these areas. Manchester was named one of the leading global hotspots for startups in 2020. 

With a huge amount of young talent and graduates moving to the area, the quality of life and great transport links, the North West could be one of the best property investment locations for 2023.

To find investment opportunities, learn more here from North-West property specialists Forth Action Invest.

What types of property should I invest in?

There are various ways you could invest in the North West property market and this decision will often lie in what you’re looking for. 

The buy-to-let approach is the most traditional and common type of investment and one that has faired well in the North West landscape; this can include one, two or three + bed homes.

HMOs are also growing in popularity amongst professionals – especially in big cities like Manchester.

Houses of multiple occupations (HMOs) comprise at least three unrelated tenants living in the property. These can include student housing or properties around built-up areas for young professionals.

Student housing and HMOs often yield higher rental prices, while family-focused two or three-bed properties work well just outside of the city centre or within easy reach. 

Photo by Kirsten Drew on Unsplash

While the style of these properties can vary dramatically, terraced houses have long been one of the strongest property types for house price growth over the last 20 years. Since 2000, the prices for terraced houses have jumped by 96% from £189,394 to £321,519 (on average throughout the UK.)

The second biggest change in value is the humble semi-detached house. Both can be ideal property investments within the North West – especially as the prices are much lower than what you’ll find down south but with strong demand from tenants.

Another unexpected influence that Covid-19 has had over the rental investment market is allowing a furry friend. A total of 3.2 million UK households acquired a pet during the start of the pandemic, so rental lets allowing pets will likely be a trend going forward.

Is buying a flat a good investment in UK?

For those looking to invest in the city centre of Manchester, for example, there’s a range of properties that see good yield rates. 

One-bed properties can be in demand within major cities.

Areas like Deansgate in Manchester City Centre are becoming a hotspot for investing in flats or apartments as these are at the heart of all the social action.

How to start investing in the North West

Photo by Merve Selcuk Simsek on Unsplash

Investing in the North West is an opportunity to enjoy the rise in attraction to this area over the next few years and beyond. 

If you’re not from the area, it can be difficult to know the best property investment properties and streets, but we’ve got you covered!

With Forth Action Invest, you can begin your North West property journey through our complete turnkey service. This removes much of the stress of UK property investment as we do the work for you.

And we’re experts in the North West. We’ll walk you step-by-step through each process and share exactly what you’ll need to know before taking that first step into investing within the area. 

For more information on finding the best property investment in the North West, start investing with us today.

*Please note this blog does not constitute investment advice. We recommend you conduct your own due diligence before making any investment, including seeking independent financial advice.