Northern UK Cities Offer New-Build Investment Potential

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Is New-Build Development On the Rise in the UK?

Property investors typically look to city areas with good regeneration and redevelopment prospects. For instance, a Shawbrook Bank survey revealed that many landlords viewed urban apartments as a lucrative long-term investment opportunity due to their proximity to job opportunities.

With supply down – albeit growing – compared to previous years, new builds may prove crucial to investors looking to expand their portfolio in the country’s major cities in 2024.

As discussed by both major political parties, housebuilding remains a priority. The UK faces a planning backlog, with many properties waiting in the pipeline.

However, while the cost of materials has hampered property development, many areas are seeing new-build developments pick up pace, which is good news for buy-to-let investment.

A new money.co.uk study delves deeper into the UK cities with the highest new-build property construction in the past 12 months. The research considers factors such as the number of decided planning applications, annual Google searches, and job listings to formulate a comprehensive score.

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What Cities Present the Most New-Build Property Investment Opportunities?

According to the research, Edinburgh leads in new-build property investment opportunities, completing 482 new-builds per 100,000 people, followed by Aberdeen with 466 per 100,000 people.

However, Newcastle-upon-Tyne saw 372 new homes delivered per 100,000 over 12 months, closely followed by Manchester in the North West, completing 315 homes per 100,000 people. This makes these cities the best place for new-build investment in England.

Manchester has the smallest gap between planning applications decided and new-builds completed, making it the city with the highest number of approved plans for new-build property developments.

Elsewhere on the money.co.uk list, Swindon (278), Cardiff (261), Leeds (251), Derby (245), and London (238) make up the top ten.

However, regarding the number of planning applications decided, London has one of the highest figures at 693, second only to Edinburgh at 747. Despite this, the city lags behind in the completion of new-build properties.

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Could North West New-Builds Prove Lucrative for Property Investors?

It is no surprise to see Manchester sitting comfortably as one of the top places for new-build property investment. The North West has been tipped as one of the hottest buy-to-let markets in the UK for 2024. In Savills’s Cross-Sector Forecast, they predicted that North West buy-to-let would see returns of 9.2% over the next 12 months, which could sway investors looking at buying a rental property.

However, if you’re looking for a North West city with regeneration potential and new-build developments, you may want to cast your eye over houses and apartments to buy in Liverpool.

Liverpool boasts the fastest-growing economy out of any other city in the UK. At the same time, areas like the Baltic Triangle and the Knowledge Quarter are a testament to the ongoing regeneration success within the city centre.

In addition, the average property price in the city is £174,453, according to the HM Land Registry UK House Price Index, which is considerably cheaper than the national average. These convenient property prices could be enough to attract savvy investors to new builds in Liverpool.

In 2023, Liverpool’s first eco-development, ELEMENT – The Quarter, became an eye-catching addition to the local property landscape, while the upcoming Gateway development is set to bring New York-style living to Merseyside, utilising eco-construction practices and leading the regeneration initiative in the city’s Pumpfields area.

If you’re interested in North West buy-to-let investment, check out some of our area guides on the following subjects: