Best Areas to Invest in Property in 2023

If you're considering investing in property, one of the key decisions you'll need to make is where to invest. While it's tempting to focus on the big cities like London, Manchester, and Birmingham, these areas can come with high price tags and fierce competition, and depending on the type of investment sector, saturation. Saturation is where there is too much availability for the type of rental you are also trying to let, if there is too much supply, outstripping demand, then prices will will drop.

One strategy for finding profitable property investments is to look to secondary towns and cities where property prices are cheaper but demand remains high. These areas can be ideal for landlords looking to get started or expand their property portfolio. Halifax, Preston, and Hull are just a few examples of such secondary places where investors can enjoy good returns.

If you have cash sitting in a bank account then it's worth considering investing in PBSA (Purpose Built Student Accommodation) properties in areas with strong universities. Student housing is a consistently in-demand market, and a good investment in the right location can yield strong returns of 7% and more. However, you must still be wary of saturation.

Inflation is a worldwide challenge, but UK inflation is proving to be especially stubborn. As a result, it's important to carefully consider areas where property prices may be able to keep up with rising inflation rates. By looking to secondary towns and cities with good growth prospects and strong demand, landlords can make sure their investments continue to hold their value and even grow over time. Look for areas where there are redevelopment schemes, where, over time, value will be added by the local council and inward investment.

In summary, investing in property is an excellent way to generate longterm wealth, but finding the right area to invest is key. By focusing on secondary towns and cities with high demand and good growth prospects, landlords can secure strong returns.

Location, location, location!