The best locations for investment properties under £200,000

Liverpool, Birmingham and Manchester have emerged as the top cities with the most investment properties for less than £200,000.
The findings come from the insurance firm Pikl which says that while these areas offer attractive opportunities, investors must consider the risks.
These include issues such as crime rates and flood zones.
The firm found that Liverpool boasts 2,502 affordable properties, driven by the city's economic regeneration and growing tourism sector.
However, investors need to be aware of higher crime rates in Toxteth and the city centre, plus there are flood risks near the River Mersey.
'Investing 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.
"Crime rates, flood risks, and structural integrity are potential factors that could impact long-term property value and its rental viability in the holiday lettings and private rental sectors."
He added: "Investing in a budget-friendly property can be a great financial move, but understanding the risks is key to making it a profitable one."
Top 10 investment locations
The top 10 investment locations also include:
· Birmingham, with 1,663 affordable homes, benefits from a growing business district and infrastructure projects like HS2. The city's clay-heavy soil might pose subsidence risks and areas like Aston and Handsworth have high burglary rates.
· Manchester, listing 1,619 homes under £200,000, is known for its thriving economy. Affordable options are available in Harpurhey and Wythenshawe, but some South Manchester postcodes have higher burglary rates. Older properties may have a lack of modern insulation, and some might have structural issues due to outdated foundations.
· Nottingham, with 1,433 homes, attracts buyers for its lower house prices. However, some areas have a high crime rate and there’s a history of mining which might pose risks including ground movement and subsidence.
· Leeds offers 1,178 affordable properties, providing strong rent yields. Armley and Beeston are popular areas, but buyers need to be aware of rent scams and flood risks.
· Hull, listing 1,108 properties, holiday let investors are attracted to its coastal location. Inadequate drainage infrastructure are concerns, plus there’s a flood risk. Older houses may require upgrading to meet energy efficiency standards.
· Sheffield has 990 affordable properties, attracting investment buyers. Older buildings may have updating issues, including outdated wiring, insulation and plumbing. Property maintenance and structural insurance cover are recommended to help with long-term costs.
· Doncaster, with 897 properties, offers strong growth potential. However, high crime rates in some areas can impact viability. Insurance premiums may be influenced by local crime rates.
· Stoke-on-Trent lists 860 affordable properties, benefiting from a thriving economy. Subsidence risks due to former mining activities and contaminated land pose challenges. Thorough surveys are recommended for older properties.
· Sunderland, with 821 properties, is an appealing option for investors. Flood risks and coastal erosion are concerns, and there have been fluctuations in tenant demand. Structural integrity issues should also be considered.
Popular student destinations
Simon Thompson, the managing director of Accommodation for Students, said: "For UK student landlords, investment properties under £200,000 in cities like Liverpool, Birmingham and Manchester offer attractive opportunities.
"Investing in affordable properties can be a lucrative move, but appreciating the associated risks and taking necessary precautions is key to ensuring a profitable venture."
He added: "It helps too that most of those cities are popular student destinations so affordable properties present promising investment opportunities for student landlords."