The rental market across the UK has been a focus for investors across the course of the last few years, with cities like Manchester, Birmingham, Leeds and a few others becoming real leaders in new build homes, off-plan investment and growth in rental yields.
However, thereare always new and emerging markets in what has become one of the best opportunities to invest money over the last few years. These are often dictated by gaps in the market, and over the last few months and years, emerging regions such as Wales are now becoming better options for property investment.
High levels of demand and an ability to buy low and experience a high yield put Wales in something of an enviable position, and could see the country become a property hotspot in years to come for investors. Here, Experience Invest looks at why.
High demand
Fewer people are buying homes in general across the UK, which is good news for property investment companies everywhere. Over the last few years, homeowners have fallen in number from around three-quarters of the population to less than two-thirds, which can only be seen as good news for the market as a whole.
In addition, movement away from larger cities across England has benefitted less popular and less pricey areas. While this is mostly something that has been seen in regards to London, where many people have moved to commuter towns and cities like Birmingham, it’s not the only city where this has become a viable option.
According to reports, more people plan to take a chance on Wales and make the move across the border from more costly cities for a better quality of life. Areas such as Bristol are seeing a swell in the number of new build homes and the number of people casting an eye towards Wales, which can only help to see rental demand rise for landlords over the coming few years.
Low investment, high yield
One of the best things about investment opportunities moving away from its London-centric past is the fact that a growing number of buyers have been able to see the benefits of buying at low prices in order to welcome higher levels of income, and the long-term positives of doing so. North and south Wales are UK regions where this mindset could best set up investors for future success.
As a guide, property for sale in Wales has a lower price tag than in other major areas of the UK. According to a governmental report, the average house price in Wales at the moment sits at more or less £144,000. This is far lower than the UK average of around £217,000, meaning that investors in Wales are getting a little more bang for their buck.
And of course, low purchase prices do not necessarily mean that there will be lower levels of income for buyers of rental properties. At the moment, investors in Wales are able to welcome an average rental price of £700 per month, according to a report by Countrywide. And with this rising far faster than prices (5.6 per cent in 2016), it means there are great opportunities to continue to build on what are already some impressive yields.
High demand and low purchase prices make Wales a fantastic opportunity for investors looking to get into a new area of the property market, and with conditions likely to remain more or less the same for some time to come; it could well be the case that we see even more investment in this market in the next few years.
