Top 5 Cities for Rent to SA Investment in the UK

Key takeaways:

• Know the nitty-gritty details of the top 5 cities for rent to SA investment in the UK.
• Associate with a professional property management agency that can help you minimise the hassles of investing in a rent-to-serviced apartment strategy. 

Rent to SA (R2SA) in the UK is no longer an alternative to hotels. 

Why?

Thanks to the industry’s quick adjustment to the latest trends, it has become one of the popular investment strategies for property investments.

So, are you considering R2SA as your next investment move?

Before you leap ahead, you must know all the ideal cities for rent to SA investment in the UK.

Let’s explore each city one by one. 

Top Cities for Rent to SA Opportunities in the UK

While England’s rental yield shows a positive trend, the north of England appears to be outperforming the South.

Why?

Because of the high property prices in these areas.

So, which are the top cities to invest in?

Here’s the list:

Manchester

Leading the list, Manchester’s rental market is booming.

As of June 2023, the city saw a year-on-year rental increase of 13%. Also, the average rental yield was about 5–9%. 

Do you know what’s even more staggering?

These numbers stand out as the highest in England, outside of London, and are about 3% higher than the average in the North West region.

Note: The number of available rental properties in Manchester is decreasing. February 2023 marked the lowest number of rentals since 2020. The shortage is driving the significant 19.6% rise in rental prices over the past year.

Despite the topsy-turvy situation, Manchester continues to attract new residents and businesses thanks to ongoing property developments and improvements in infrastructure. 

It’s an exciting time to consider R2SA investments in Manchester, but it’s crucial to stay informed about market trends.

Leeds

While making an investment move in the rental market, you can’t ignore Leeds in 2024. 

Leeds rental yields were around 6.3% in September 2023.

But what’s driving the overall industry?

The two core reasons for the surge are affordable property prices and a lack of available rentals. Leeds is also home to around 60,000 students, who keep rental demand high, contributing to the shortage of available properties. 

We can’t ignore the steady stream of professionals, especially from the financial services and tech sectors.

All these factors add even more fuel to the fire.

Rental prices in Leeds have increased by 8% over the past year due to high demand and limited available properties. 

With new developments and infrastructure projects coming up, the city’s rental market is expected to continue growing even for R2SA opportunities. 

Liverpool

Known for its vibrant culture and exciting nightlife, Liverpool offers a great return in the UK rental market. 

As of October 2023, Liverpool delivered an average rental yield of 6.2%, which is a slight increase from last year.

It’s because of the affordable property prices.

Also, thanks to its large student population from the University of Liverpool, Liverpool John Moores University, and Liverpool Hope University, the demand for rentals has spiked.

Upcoming developments like Tobacco Warehouse, Liverpool Waters, and the Knowledge Quarter are expected to strengthen the rental market further.

Being an active rental property investor, you can’t ignore Liverpool as an ideal city for R2SA investments. 

Nottingham

Nottingham has a diverse economy and stands out as a top UK property investment location.

It is also located in the heart of England.

In 2023, the average rental yield in Nottingham is around 6% because of the affordability and steady rental demand.

These numbers are similar in the other three cities as well, but what makes Nottingham stand out is the strategic location and its variety of industries.

From healthcare to the retail industry, all support the property market of Nottingham.  Also, a growing number of young professionals in the tech and digital sectors has increased the overall demand for rental properties, especially serviced apartments.

The Nottingham rental market has over 60,000 students from the University of Nottingham and Nottingham Trent University.

Birmingham

Being one of the UK’s fastest-growing cities, Birmingham offers appealing opportunities for you in the rental market. 

The city offers an average rental yield of around 6.3%.

The rental market in Birmingham is experiencing a demographic shift.

How?

More young professionals and families are opting to rent due to the city’s affordability compared to London. 

The result?

Nearly a 10% rise in rental prices from June 2022 to June 2023.

Overall, Birmingham’s economy is strong, with thriving sectors like financial services, digital technology, and creative industries. 

So, are you ready to invest in an R2SA property?

Choose Pluxa Property for Rent to SA Investments

Investing in R2SA can help you avoid the common hassles of renting, such as finding tenants, refurbishing, and marketing your property.

However, selecting a professional serviced accommodation investment service provider can be challenging. 

That’s where we come in.

Choose Pluxa Property to secure the best deals if you’re looking for top-notch serviced accommodation investment services.

Our team of professionals has years of experience in helping property investors make a strong mark in the rental market. We will understand your requirements and plan a tailored strategy that can ensure you achieve your desired ROI. 

So, what’s making you wait?

Make a smart choice to achieve significant financial success with your rent-to-serviced property investment in the UK through our property investment company.

FAQs

What are the top five cities for rent to SA investment in the UK?

The top five cities for rent to SA investment in the UK are:

• Manchester
• Leeds
• Nottingham
• Liverpool
• Birmingham