Best Emerging UK Property Markets in 2022
Knowing the benefits of investing in emerging property markets and being able to identify these areas are two completely different things. At Joseph Mews, we look for certain characteristics in local property markets, and choose locations that can offer investors capital growth, competitive rents and strong tenant demand.
In addition to these traits, we also measure emerging property markets based on:
Property Prices | Rental Yields | Tenant Demand | Regeneration | Career Opportunities | Transport Links | BTL Opportunities
Using these metrics, we’ve highlighted some of the best emerging property investments in the UK.
Want to know more about the UK property market for 2022? Download the UK Investment Guide today and discover everything you need to know about UK property investment in the new year. In this guide you’ll find:
- Current market performance
- Forecasts for the UK property market in 2022
- Key trends impacting the market
- Best places to invest in 2022
Average Property Price: £532,245
Average Rental Yield: 5.13%
10 Year Price Growth: 16.5%
The UK is renowned for many things, one being its outstanding academic offerings. The University of Oxford is one of the best universities in the world, and is the biggest employer in Oxfordshire. Employing around 14,000 people, this academic institution is not only enticing a younger demographic to the area, it’s also keeping them there.
Students make up around 40,000 of Oxford’s entire population, making them a significant demographic in the local property market. Tenant demand is the key to a successful buy-to-let investment, so for those considering Oxford as their emerging market, it’s crucial to consider this younger demographic and what they’re looking for in a property.
By offering exceptional academic institutions and a wealth of employment opportunities, Oxford has been ranked as a top city for success and well-being. The Demos-PwC report has commended the city for its employment opportunities across a variety of different sectors, including health, technology and research.
While Oxford is already home to over 175,000 people, it’s amongst the best emerging markets in the UK. With forecasts expecting its population to grow by up to 15,000 each decade, the demand for property is on track to reaching new highs.
Average Property Price: £449,823
Average Rental Yield: 4%
10 Year Price Growth: 29%
Just South of Oxford you’ll find Reading – the economic powerhouse of the South East. While Reading is more commonly known for its transport connections, the town boasts an impressive employment hub. Housing many global tech companies, such as Microsoft, Oracle and Huawei, Reading is a hotspot amongst London leavers.
Reading’s population is expected to reach as high as 547,000 by 2026, driven by its popularity amongst transient tenants and its expanding employment base. With Reading’s current population sitting at just 145,000, the town’s exciting future is making it one of the best emerging property investments in the UK in 2022.
Regeneration projects spread far and wide across the South East, and Reading is no exception. To build upon the town’s incredible transport links, £900 million is being invested in regenerating Reading train station, while the University of Reading will be adding a new Science and Innovation Park to the town.
Average Property Price: £145,668
Average Rental Yield: 4.08%
10 Year Price Growth: 10.5%
While Hull may not be one of the most well-known emerging property markets, the city has been on an upward trajectory for the past nine years. German engineering company, Siemens, chose Hull as the location of their new wind turbine factory, which catalysed a wealth of changes across the city.
Hull is now renowned for being a hotspot for renewable energy production, and houses the likes of KCom Group, Ideal Standard and BP. The city has come a long way in a short period of time, with Hull’s history largely centring around trading and fishing ports.
The city’s expanding employment opportunities and growing commercial hub has pushed Hull’s population to 260,000 – the highest number for 20 years. This rapid population growth was boosted by the city being named the ‘UK City of Culture’ in 2017, which has since drawn more than five million people to the city. Along with £220 million of investment and hundreds of new jobs, this title has been paramount in establishing Hull as one of the best emerging property markets in the UK.
Average Property Price: £173,780
Average Rental Yield: 4.32%
10 Year Price Growth: 18.6%
Another one of the UKs emerging property markets is Rochdale – the former ‘engine house’ of the industrial revolution. Located just North East of Greater Manchester, this town not only offers connectivity, it also houses a plethora of amenities. With hundreds of bars, restaurants and nightclubs, Rochdale is a popular alternative to Greater Manchester.
Rochdale’s colourful history has long been a selling point for the town, and with multiple regeneration schemes on the horizon, its industrious roots are only going to strengthen. While the city has already undergone extensive redevelopment, future plans include adding new homes, improving transport links and preserving historic architecture.
The town’s population currently sits at a modest 212,960, but after ten years of consistent growth, the upcoming regeneration schemes will only push the population further. Translating into strong tenant demand and increasing property prices, these ambitious projects are making Rochdale one of the best emerging property investments in the UK.
Average Property Price: £180,966
Average Rental Yield: 6.07%
10 Year Price Growth: 15.8%
Derby is at the heart of the East Midlands, and is a leading city in the UK. While Derby was once renowned for housing the country’s first factories, it’s expansive employment base has since made the city even more popular – especially amongst the younger demographic.
Housing several global manufacturing brands, including Rolls Royce and Bombardier Transportation, these connections have cemented Derby’s position as the 6th most productive city in the UK. With a solid foundation of employers and opportunities, it’s no surprise that almost 48% of the population is under 35.
However, this is only set to increase in the coming years. The Derby City Centre Masterplan 2030 could push the city’s population as high as 312,000 by 2037, driven by new jobs and amenities. This growing population will inevitably push the demand for rental property, and with a notable disparity between supply and demand already, this is making Derby one of the best emerging property markets.