Fabrik Invest reveals top 2021 UK buy-to-let hotspots

Fabrik Invest reveals top 2021 UK buy-to-let hotspots

United Kingdom
  • Up-and-coming cities rubbing shoulders with established hotspots
  • Ideal investment opportunities flagged up in five key locations
  • Manchester crowned as top investment destination for 2021

The UK’s buy-to-let market could be in for a bumper year in 2021, according to property investment company Fabrik Invest. The news comes as the 2019-20 English Housing Survey confirms that the private rented sector continues to house 19% of England’s households – some 4.4 million households.

Fabrik Invest has begun 2021 by revealing its top buy-to-let hotspots for the year ahead, while sharing projections on the shape of the market over the course of the year.  

“The Stamp Duty deadline, Brexit and COVID are going to create some interesting conditions for the UK’s property investment market in 2021. Underpinning all of these is the country’s continued shortfall of housing supply, which creates an inviting marketplace for investors looking to pick up rental properties this year.”

Dale Anderson, Managing Director, Fabrik Invest

The rush to beat the 31 March Stamp Duty deadline has seen buyers in all areas of the market racing to complete. While a drop off in transactions is inevitable following the end of the holiday, the UK’s fundamental shortage of homes means that the buy-to-let market will remain buoyant, according to Fabrik Invest.

Not only that, but currency fluctuations resulting from Brexit could result in some significant overseas interest in UK property investment as the year unfolds.

“If the pound falls as a result of the UK parting ways with the EU, we’re likely to see a surge in investment from overseas buyers looking to take advantage of suddenly being able to get more for their money. The UK remains a preferred investment destination for buyers from a wide range of other countries, many of whom will be keeping a close watch on exchange rates throughout 2021.”

Dale Anderson, Managing Director, Fabrik Invest

Having reviewed a wide range of market factors, the Fabrik Invest team has identified five key locations that should be on savvy investors’ radars in 2021. Manchester tops the table as a result of its rapidly rising property prices and rents and strong long-term prospects. The huge MediaCityUK development makes Salford Quays the area to watch.

Regeneration schemes are also at the heart of the city of Preston’s appeal. The Preston City Deal is overseeing the investment of £434 million into local transport infrastructure and public realm, while major regeneration is also underway in the Harris Quarter, Stoneygate and Preston’s new urban park. Ideally positioned to benefit from the works taking place next to it, Bishopgate Gardens is a luxury development of 130 apartments in Preston city centre. The one, two and three-bedroom homes come with exceptional communal spaces, while ground-floor retail units add neighbourhood appeal. It is this kind of flagship development, which serves to offer a new standard of living in the city, that Fabrik Invest believes will be at the forefront of investors’ minds in 2021.

Another top location to watch is York – a firm favourite with everyone from investors to owner occupiers seeking out a city with charm. The Yorkshire and the Humber region is projected to outperform the UK average for house price rises over the coming five years, while the city’s tourism sector also comes into play.

“Investors looking for a more flexible buy-to-let investment have some interesting options open to them in 2021. In York, for example, apartments at Icona can serve not only as long-term rental investments but also as Airbnb/short-term lets. This provides investors with a welcome degree of choice in order to respond to shifting market conditions.”

Dale Anderson, Managing Director, Fabrik Invest

Birmingham is another destination that warrants keen attention, thanks to its shortfall of over 30,000 homes by 2031. In particular, the city’s most fashionable location – the Jewellery Quarter – will deliver some exciting investment opportunities this year.

Fabrik Invest’s final 2021 buy-to-let investment hotspot is Chatham. This kind of London commuter belt location serves the COVID-spawned desire for more space both inside and out, at prices that are significantly more affordable than those in the capital (both for investors and renters). Substantial local regeneration, swift train journeys into central London and a rapidly growing population combine to make this a must-watch hotspot in 2021.

For more information, please contact Fabrik Invest on 020 8175 9891 or enquiries@fabrikpropertygroup.com, or visit www.fabrikinvest.com