Exclusive: London remains by far the UK’s hottest property investment spot but rural areas on the rise
London remains the primary focus among UK property investors, according to new research shared exclusively with City A.M. today.
Among those planning on purchasing a property in the next 12 months, London emerged as the UK’s leading investment hotspot, with 40 per cent considering investing in the capital, FJP Investment found.
Behind London, the West Midlands and East of England ranked second and third, with 32 per cent and 26 per cent of investors, respectively inclined to purchase a property in these regions.
The South West came fourth (19 per cent), closely followed by the East Midlands (17 per cent).
“The stamp duty holiday has clearly played a part in boosting activity in the property market and with the worst of the pandemic hopefully behind us and investor confidence returning, property portfolio expansions are high on investors’ agendas for the coming year,” commented Jamie Johnson, CEO of FJP Investment.
Rural areas more attractive
Interestingly, 44 per cent of UK property investors have become more inclined to consider investing in properties in rural areas since the start of the pandemic, FJP found.
The investment firm commissioned an independent survey among 512 UK investors, all of whom own two or more properties in the UK. It found that nearly half (44%) intend to expand their property portfolio in the coming year, with 42% citing real estate as the main focus of their investment strategy at present.
“Tellingly, London has retained its crown as an investment hotspot, despite speculation throughout the pandemic that the city may have lost its appeal as a place to live, work and invest,” Johnson told City A.M.
“Yet our research also shows that regions such as the West Midlands and East of England rank high among investors’ wish lists, and we should expect these areas, along with the likes of the North East and North West, to attract high level of property investment in the coming years,” he added.
Region | Investment interest * |
London | 40% |
West Midlands | 32% |
East of England | 26% |
South West | 19% |
East Midlands | 17% |
Yorkshire and Humberside | 16% |
Scotland | 15% |
South East | 15% |
North West | 13% |
North East | 9% |
Wales | 5% |
Northern Ireland | 5% |