Nottingham was recently named the best place in the UK to invest in property. The city earned the joint first position with Liverpool, to claim the title as the country’s top performing property investment location.
The latest research, conducted by Private Finance’s buy-to-let hotspots analysis, shows that both cities have average net rental yields of 6.2%. Cardiff came out in third place with net rental yields of 6% with Southampton and Greater Manchester following with 5.9%. Nottingham held second position in the table last year, but the city has now moved up after the average monthly rents have increased by £121.
Nottingham has seen a significant amount of investment over the recent years, with many top national and international organisations choosing to do business in the East Midlands region.
Sam Spencer, associate at Bruton Knowles said: “Nottingham is a great location for business, especially property investment. With its excellent transport infrastructure and central location in the country, it makes it an easy city to get to from anywhere in the UK which in turn makes it attractive to investors and occupiers.
“There is certainly an artistic and creative flare about the city, with its historical links and desirable location, is has all the qualities investors are looking for. It is also surrounded by beautiful countryside, including Sherwood Forest and the Vale of Belvoir.”
Nottingham’s economy is constantly growing and has recently become the fastest growing in the East Midlands, outperforming both Derby and Leicester. The southern gateway to the city is currently undergoing a £250m regeneration, which will see the area transformed. The redevelopment of intu Broadmarsh is also progressing and will create a modern, friendly and welcoming place to shop, eat, relax and socialise.
Sam added: “Nottingham is home to top businesses and top-ranked universities and we are seeing more tenants now looking to rent in the city, and with a shortage of space and property, rents are at a consistent increase. This might be bad news for renters, but it is certainly a positive for investors, leading to a higher profit from their investment.”
“With a young workforce and high skills offering, there is a large amount of investment planned over the next five years, including more tram lines and significant redevelopment of the railway station. This makes Nottingham a popular first choice for investors, and it comes as no surprise that the city earned first place, alongside Liverpool.
“With that being said, landlords are now facing higher costs after a series of tax changes and mortgage conditions, making it essential that landlords are managing their property portfolios carefully. Choosing the right location is key, and landlords need to be confident that the property value will grow at a higher rate than mortgages, allowing a higher profit overall.”