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Best UK Locations For Property Investment

New research has shown up the best UK locations for property investment, either for pure investment or buy to let.

Lettings platform Howsy, has looked at what UK locations are currently the best place to invest in bricks and mortar, and where is the best location to invest in a buy to let to combine the best of both worlds in tough market conditions.

They looked to find the UK locations with the best property value growth over the last year, where is home to the highest rental yields and where is the best option for a mix of both when investing on your doorstep.

Investment Property UK Locations

For pure property value growth, North Devon tops the table at 15 per cent growth year on year, followed by Merthyr Tydfil and Blaenau Gwent in Wales, both at 13 per cent, along with a third Welsh option in Caerphilly, up 11 per cent.

Camden is the best bet in London with house prices up 10 per cent in the last year, with West Devon, Forest Heath, Rochdale and Monmouthshire all up 9 per cent, and Trafford seeing annual growth of 8 per cent.

Buy to Let UK Locations

When it comes to current buy to let rental yields, the best UK locations list was topped by Glasgow, with a return at 7.5 per cent, with Scotland also accounting for the next best three in Midlothian (6.8 per cent), East Ayrshire (6.8 per cent) and West Dunbartonshire (6.7 per cent).

Burnley and Belfast are home to current yields of 6.5 per cent, while Inverclyde (6.4 per cent), Falkirk (6.3 per cent), the Western Isles (6.2 per cent) and Clackmannanshire (6.1 per cent) complete the top 10.

Founder and CEO of Howsy, Calum Brannan, commented: ‘The face of the lettings sector has changed quite considerably with the advent of technology-based solutions to traditional problems, and now even the most amateur of buy to let landlords can own a home on the other side of the UK and manage their investment efficiently and effectively.’

Source: Residential Landlord

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Average UK house price reaches new record of £213,000 in April

House prices reached a new record high of on average in April, according to an index.

Property values edged up by 0.2% month on month, reversing a 0.2% dip seen in March, according to figures from Nationwide Building Society.

The annual pace of UK house price growth also accelerated to 2.6%, from 2.1% in March.

Robert Gardner, Nationwide’s chief economist, said: “Looking ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.

“Subdued economic activity and the ongoing squeeze on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year.

“We continue to  expect house prices to rise by around 1% over the course of 2018.”

Mr Gardner said the share of cash transactions in the housing market has fallen slightly over the past 18 months – although cash buyers still account for around a third of sales.

He suggested the decrease is partly due to the introduction of an additional stamp duty levy for people buying second homes and rental properties, a large proportion of which tend to change hands using cash.

Mr Gardner continued: “In recent years, we have seen a recovery in first-time buyer transactions, which are now broadly in line with pre-crisis levels.

“The easing in credit availability, including schemes such as Help to Buy, have helped boost activity. Meanwhile, home-mover activity has remained relatively subdued, in part due to the lack of stock on the market.

“Buy-to-let purchases have fallen as a share of total transactions since 2016.”

Howard Archer, chief economic adviser at EY Item Club, said: “It is very possible that housing market activity – and possibly prices – were adversely impacted in March by the severe weather that particularly occurred during the month.

“Even so, the current softness of the housing market runs deeper than that.”

He continued: “We continue to expect price gains over the year will be limited to a modest 2%.

“The fundamentals for house-buyers are likely to remain challenging.

“Consumers have faced an extended serious squeeze on purchasing power, which is only gradually easing.

“Additionally, housing market activity remains hampered by relatively fragile consumer confidence and limited willingness to engage in major transactions.

“House-buyers will also likely be concerned about further interest rate hikes over the coming months.”

Source: Yahoo Finance UK