The UK economy has faced a turbulent few years, from political uncertainty to rising inflation and a cost-of-living squeeze. But for investors, opportunities still exist. I spoke to Dan Earl, Managing Director at API Global, to unpack what’s happening in the UK property market and how landlords can make the most of it.
Dan began his career on the buyer side of the property market as an expat before moving into a partner role at API, where he supports both corporate clients and individual investors. API, which stands for Assured Property Investments, focuses on delivering high-performing property portfolios tailored to long-term goals such as wealth preservation, retirement, and succession planning.
The business takes a strategic, family-office approach, mitigating risk and sourcing investment-grade opportunities in locations backed by strong fundamentals, such as infrastructure, education and transport.
Note: This article is adapted from a conversation originally featured on the APW Property Podcast.
Dan and Callum discuss UK property at the APW offices
What’s Happening with the UK Property Market?
The UK is facing a big problem with housing supply but despite challenges, recent market shifts make property an appealing investment for those looking for more stable returns.
With over 80 million people and limited land, there aren’t enough homes being built to meet demand. The government targets 300,000 new homes a year, but fewer than half that number are completed annually. Some estimates suggest a 4.3 million home shortfall, and with an ageing housing stock and more people on the move, demand isn’t going away anytime soon.
At the same time, rising costs — like higher national insurance and capital gains tax — are shifting the financial landscape for both consumers and investors. These changes are putting pressure on household budgets and reducing disposable income.
As Dan explains, “We’ve got a growing population more and more people moving house. They’re not building enough homes. So, prices are going up.”
But in a time of rising inflation and taxes, property still shines.
Owning a physical asset like property can offer a hedge against inflation and volatility. It can generate steady cash flow and, in the long run, provide capital growth — something that’s harder to achieve with more traditional investments. Property has historically been regarded as a solid way to preserve wealth and manage risk, especially in times of economic uncertainty.
Savills forecasts that areas in the North West like Manchester and Liverpool (pictured) will see significant price growth.
Is Manchester a Good Place to Invest in Property?
City regions with strong fundamentals are likely to remain resilient — and Manchester stands out. It has a young, mobile population alongside major infrastructure investment and a growing base of reputable employers like Amazon, the BBC, and Google.
For property investors, the city’s demographic presents real opportunity. Manchester is one of the most popular UK cities for 25–29-year-olds, many of whom want modern, well-connected homes — not dated terraces on the outskirts.
With API Global recently establishing a base in Manchester, Dan knows all too well the goals of young professionals in the area: “They don’t want to live in a two-up, two-down from the ’70s. This demographic wants co-working spaces, gyms and so on. We’re very particular about what we bring to market. It has to be a sustainable, long-term investment product.”
It can be tempting to chase short-term yields, but the long-term success of a property often depends on sustainability. Look for cities with strong economies, growing job markets, and steady demand for quality rental housing. Forecasts from Savills suggest that the North West will lead UK house price growth over the next five years, with values expected to rise by 20.2% by 2028, further underlining the region’s investment potential.
The BBC studios in Salford Keys, Greater Manchester
What Makes a Good Buy-to-Let Property?
Dan mentions that a successful buy-to-let investment starts with clarity of purpose: “Once you have a clear goal, it’s easier to work back from that and say, okay, I want X amount of income by X date, and I’ve got these resources — cash and time — to get there.”
In other words, define what you’re trying to achieve, whether that’s regular monthly income, long-term capital growth, or a combination of both. From there, you can shape your strategy accordingly and select the opportunities that help you reach that goal.
When it comes to a good buy-to-let, city centre locations tend to offer stronger rental demand and capital appreciation, especially when supported by infrastructure upgrades or large-scale regeneration projects. Proximity to major employers, universities, and transport links adds further resilience.
Beyond location, the quality of the asset matters too; well-designed properties with reputable developers, strong lettings potential, professional management, and a realistic exit strategy all play a role in delivering consistent returns and reducing risk over time
Rental Property Pitfalls and How to Find What Works for You
Property investing is as much about avoiding pitfalls as it is about spotting opportunities.
One of property’s biggest advantages is leverage. A 25% deposit secures a much larger asset, meaning modest price increases can deliver outsized returns. That kind of capital efficiency is hard to replicate elsewhere.
“If your leveraged asset grows by 1%, you make a 4% return on capital invested.”
That said, property isn’t risk-free. Rising interest rates, changing regulations, and the illiquid nature of bricks-and-mortar investment all need to be considered. By staying aware of common property mistakes, you can help ensure your investment is used wisely.
1. Watch Out for Guaranteed Returns
One of the biggest red flags in property investing is the promise of a “guaranteed return.” Dan warns: “Any time someone’s offering you a guarantee, run a mile.” Often, these deals involve inflating the price of the property and handing a portion back to you as a so-called return. “You’re just getting your own money recycled — it’s smoke and mirrors.”
It’s also essential to look beyond glossy brochures and ask about the detail: who’s behind the construction? Are there robust contracts in place? What kind of investor protections exist — escrow accounts, insurance funds, developer track records? “If you’re not seeing those, it’s a sign to dig deeper or walk away.”
2. Property Shouldn’t Be Hands-On
Many investors fall into the trap of managing their property too closely — especially those living overseas. For example, an expat landlord in Dubai might try to coordinate a boiler repair in Manchester from thousands of miles away, juggling time zones and relying on tenants for updates. This approach can quickly become stressful, inefficient, and counterproductive.
This is where an investor-led managing agent becomes invaluable. “It’s money well spent,” Dan says. They handle tenant issues, maintenance, and even rent reviews, saving you from day-to-day hassle and emotional involvement. “If you’re an expat, don’t mess around with this stuff — let someone else deal with it.”
3. Keep Emotion Out of It
Too many investors confuse where they’d like to live with where it makes financial sense to invest. It’s important to separate head from heart. This isn’t about choosing your dream home, but about whether the numbers stack up.
A good starting point is to think about your target tenant and invest in areas that appeal to them.
For young professionals, that usually means modern flats in city centres, with access to jobs, transport, and culture. This demographic — typically 25 to 35-year-old white-collar workers — is a key driver of rental demand, so understanding their preferences is crucial to making smart investment choices. In contrast, if you’re targeting families, your strategy and your property type will look very different.
Dan specialises in helping clients to hedge risk and take the emotion out of a purchase, in order to see the long-term economic potential more clearly.
“It’s not about buying your dream home – it’s about the return on capital invested and seeing it as a business.’
When matched with a sound strategy and the right location, UK property can offer stable, tax-efficient returns that align with both personal and generational wealth goals.
Want to hear more from Dan and Callum? Listen to our latest podcast on investing in UK buying UK property with API.
With 14 years in UK property, Callum Williamson specialises in value-add conversions and portfolio growth. Starting with city flats, he expanded into HMOs and international assets. A passionate investor and co-author of The Expat Property Playbook, Callum helps expatriates build long-term wealth through smart, sustainable property strategies.