In the pursuit to find an affordable, high rental yield buy-to-let investment, landlords are turning their attention to the North in a bid to snap up a bricks and mortar bargain.
Property in London is very expensive and demand is at an all-time high. London is considered a safe haven for many international investors who snap up properties as soon as they go on the market. For small UK based investors looking to expand their property portfolio or those new to the property investment game, Manchester, Liverpool and other cities in the North of England offer a high rental yield, rental demand alternative to investing in the capital.
For between £100,000 and £180,000, you can secure yourself a medium sized house in Liverpool, Blackpool, Preston, Wigan and other Northern towns, allowing you to either convert the property into a high rental yield HMO, house of multiple occupancies to suit the student or young professional market or rent the property out to a local family on a long term lease.
The North of England may be offering affordable investment opportunities at the moment, but as demand increases and more investors attempt to beat the rise in UK Stamp Duty, set to come into play as of April 2016, this profitable investment opportunity will not be around forever.
Where to Invest in the North of England?
Greater Manchester is connected in more than one way. The capital is within an easy commute via train for any essential business meetings or international events and it is home to a major International airport, connecting it to many long haul destinations. In fact, the city will soon have a direct flight to Beijing, that will help to encourage further investment from East Asian businesses.
With property prices from £161,844, there is definitely a strong investment incentive for the buy-to-let market. If you don’t mind moving further afield, you can snap up a bargain in surrounding boroughs for as little as £1Whether you are looking to attract families, professionals, students or businessmen Manchester has a high demand for modern city centre accommodation which will only continue to rise. The average rental price for a property in Manchester is £1033 per month.
Liverpool, in particular, has seen a great level of investment over the past decade thanks to the retail and entertainment development, Liverpool One, built in the heart of the city centre, attracting tourists from around the world to it’s doorstep. With such a beautifully presented shopping and entertainment venue, the development has helped to raise the reputation of the city itself and give it a chance to compete with other cities across the country for titles such as Capital of Culture, which Liverpool was awarded in 2008.
UK and international property developers have taken advantage of the investment in the city by building a number of beautiful, modern and high-quality developments close to the main university campuses to target the growing student population the city has.
With an average property price of £137,485 this Northern city still can offer buy-to-let investors a great deal. The average rental price for a property in Liverpool is £703 per month.
Sheffield offers investors a chance to buy character properties in pretty neighbourhoods. With a large student population of over 59,000 representing 10% of the population, there is a high rental demand for modern, high-quality accommodation. Closer to the middle of the country, property prices begin to slowly creep up in price, with the average property setting you back £170,203.
Despite being located next to the stunning Peak District, the city is well connected and within an easy commute to Manchester, Leeds and Nottingham thanks being conveniently close to motorways. Four airports are less than an hour’s drive away, meaning you can reach a multitude of overseas destinations as well. The average rental price for a property in Sheffield is £736 per month.
Finding the right Northern city to invest in depends on the type of buy-to-let you are looking for. You should consider the type of property you would like to purchase and who might want to rent it out. This will help you start to consider locations, commuter distances, student populations, business investment etc which will all have an impact on your overall decision. Research is one of the key factors in property investment and you can really never do enough investigating. The property market in the UK is dynamic and can change on a daily basis. A modern well presented, recently renovated property will be best suited to investors looking for a minimal hands-off approach and those new to buy-to-let investment.
Rental Yield in the North of England
Rental yield is an important factor to consider when investing in a buy-to-let investment. In the north of England, property is less than the national average of £200,000 yet the rental price per calendar month can be as high as £1665 in Altrincham and at the lowest £475 in Halifax. This means that if you plan to invest without a mortgage, you could potentially earn the price of the property in rent in just over 10 years, giving that the property was purchased for £200,000 or lower and you could earn a rental value of over £1,500 per month. Not to mention that the price of the property will go up in price over the next couple of years, according to experts. (1)
Greater Manchester has been dubbed the UK’s ‘Northern Powerhouse’, by Chancellor George Osborne. With an average rental yield of 7.9%, property can be snapped up for well below the national average, according to research from Which?,mortgage advisors. Their latest data found that last year both Manchester and Salford saw average house price rise significantly, but still remain below the national average at £200,000, with property near to the M5 increasing in price by 34 per cent on previous years. (2)
Manchester itself is home to the largest student population in the UK. Boasting three universities, the city is a great place to invest in modern, affordable HMOs which are in demand from students and young professionals.
The Heaton Group specialise in the development and renovation of high-quality HMO properties in Greater Manchester and offer their client’s a simplified hassle free investment process. Thanks to their in-house lettings agents, Local Lettings, investors can easily benefit from the affordable investment opportunities in the north of England whilst leaving the management and tenancy of the property in the safe hands of the professionals.
If you would like to know more about investing in the North of England please don’t hesitate to contact us on email@example.com