Top property investment cities for under £200,000 revealed

Property investors looking for bargains should take a closer look at Liverpool, Birmingham and Manchester which lead the UK for properties listed under £200,000, research reveals.

While these cities offer tempting opportunities for investors, insurance experts at Pikl warn of potential risks.

These include elevated crime rates, flood zones and structural concerns related to older buildings.

The firm says investors should carry out due diligence before purchasing.

Invest in a budget-friendly property

Pikl’s holiday lettings insurance expert, Cliff Ward, said: “While these locations offer affordability in overlooked locations, there are certain risk areas that potential investment property owners may want to conduct due diligence on before investing.

“Investing in a budget-friendly property can be a great financial move, but understanding the risks is key to making it a profitable one.”

Liverpool

With 2,502 listed properties, Mr Ward says: “Liverpool presents an exciting investment opportunity. The city’s regeneration has driven strong economic activity and a booming tourism industry. However, investors should be aware of higher crime rates in certain areas, particularly in the city centre and Toxteth, as well as flood risks along the River Mersey. Areas with older properties may also have structural issues due to past industrial activity. With a significant proportion of listed buildings in the UK outside of London, the building construction type of any potential property may be an issue to look out for.”

Birmingham

It has 1,663 properties and boasts a robust market, fuelled by business growth and transport improvements. Mr Ward says: “Birmingham’s property market remains strong, thanks to its expanding business district and transport projects like HS2. Affordable homes are plentiful, but some areas, particularly Aston and Handsworth, have higher burglary rates. The city’s clay-heavy soil may also pose a higher risk of subsidence heave or landslip in certain areas.”

Manchester

Offering 1,619 properties, the city attracts buyers with its thriving economy. Mr Ward said: “Manchester is a location with a thriving economy and high demand. Areas like Wythenshawe and Harpurhey offer affordable options, but some postcodes in South Manchester report higher burglary rates. Older properties may also have structural issues due to outdated foundations and lack of modern insulation.”

Other cities highlighted include Nottingham, Leeds, Kingston-upon-Hull, Sheffield, Doncaster, Stoke-on-Trent and Sunderland, each presenting unique challenges and opportunities.

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