Investing in property has long been considered a reliable avenue for wealth accumulation and portfolio diversification. However, the decision to invest in real estate is influenced by numerous factors, including economic conditions, market trends, and geopolitical events. As we embark on the year 2024, many investors are contemplating whether it is a favourable time to allocate capital into property markets. This article delves into the key considerations that can help determine whether 2024 is indeed a good year to invest in property.

Is 2024 a good year to invest in property?

In many regions, supply shortages coupled with strong demand can drive property prices higher, making it an opportune time to invest.

These factors suggest that 2024 could be a good time to pick up investment properties at more affordable prices.

Dropping Interest Rates

The prevailing low interest rates in 2024 create an advantageous environment for property investment. With borrowing costs at historic lows, investors can secure financing for real estate acquisitions at favorable terms, maximizing their purchasing power and potential returns. This makes it an ideal time to leverage capital for long-term property investments.

Market Stability and Recovery

Following the turbulence of recent years, including the global pandemic and economic uncertainties, 2024 promises a return to stability in many real estate markets. As economies rebound and consumer confidence strengthens, property values are expected to rise steadily. Investing during this phase allows investors to capitalize on the upward trajectory of property prices.

Which part of the UK is best for property investment?

A growing number of UK property investors are setting their sights on properties in the north of England rather than the south, deeming the north a more financially rewarding part of the country to invest.

Let’s find out why this is.

Lower property prices

Property prices are generally considerably lower in the north of England compared to the south. This makes the entry point for investment more accessible and makes it easier to achieve higher rental yields.

High demand

Many northern cities are currently undergoing regeneration and economic growth. This growth, combined with the current housing crisis, means demand for rental properties is higher than ever in the north.

Higher rental yields

The combination of low entry costs and high rental prices makes it easier for property investors to achieve high rental yields in the north. According to Zoopla, the North East comes out on top when comparing average gross rental yields – with an average rental yield of 7.2 per cent.

Capital growth

Because northern towns and cities are increasingly subject to infrastructure investment, urban regeneration, and commercial development, investing in property in the North boasts promising capital growth prospects in the long term.

Where is the best place to buy property in the UK 2023?

When considering the best place to buy investment property in the UK in 2023, there are many different factors to consider; these include rental yields, tenant demand, economic growth, local amenities, and employment opportunities.

Currently, some of the most lucrative places to invest in property in the UK are:

Newcastle

Average price of a buy-to-let property – £133,000

Average monthly rent – £763

Average gross yield – 6.89%

Sunderland

Average price of a buy-to-let property – £83,000

Average monthly rent – £582

Average gross yield – 8.39%

Liverpool

Average price of a buy-to-let property – £127,000

Average monthly rent – £764

Average gross yield – 7.21%

Burnley

Average price of a buy-to-let property – £82,000

Average monthly rent – £530

Average gross yield – 7.73%

Glasgow

Average price of a buy-to-let property – £139,500

Average monthly rent – £898

Average gross yield – 7.73%

It’s useful to note that landlords managing student houses in multiple occupation (HMOs) achieve some of the highest rental yields. Property investors open to investing in student accommodation may wish to consider northern university cities when deciding where to invest.

At The Mistoria Group, we help investors find and secure attractive investment property opportunities in the UK. For help or advice with property investment,  call us on 0800 500 3015, email info@mistoriagroup.com, or complete our online contact form with your enquiry and contact details.