With property prices in London being out of reach for many buy-to-let investors, would-be landlords are turning their attention to the north to pick up a buy-to-let bargain with the potential for high rental returns.
London has always been seen as a safe haven for investors, especially wealthy overseas buyers, and this will continue to be the case. However, for UK investors who don’t have millions to spend, it is definitely the Northern towns, and its cities, that are proving to be more attractive. Manchester and Liverpool in particular are attracting a lot of interest, but periphery towns such as Sheffield, Wigan, Preston and Blackpool are bringing investors in as well.
With prices ranging between £100K and £180K it’s possible for investors to pick up a medium-sized property in the above locations and either convert into HMOs for the thriving young professional or student market, or refurb the property so that it is aimed at families for a long-term lease.
So, if you have money to invest in property and you’re wondering which northern towns and cities to focus on, here is our whistle-stop guide to three of the key cities that you might want to look at.
With property prices ranging from £161K, getting in to the buy-to-let market may be more affordable than you think. Manchester is a dynamic city with a massive student and young professional market that yearn to live in the city and be close to all the action. There are numerous apartments and purpose-built student accommodation that are springing up in the city and these have been tailored for that audience. Average rental prices in Manchester are around £1030 a month so with the right investment, you can make some very healthy returns.
Similar to Manchester, Liverpool has seen significant investment over the last 10 years, with Liverpool One, the multi-million pound retail and entertainment development, being at the centre of the city’s offering.
UK and International property developers have capitalized on the investment in the city and have built a number of high profile, high spec developments that are attracting the city’s discerning audience. In addition, the growing student population, has seen a number of purpose-built student developments shoot-up in Liverpool to service this market.
Average property prices in Liverpool are around £137K so this represents a great opportunity for buy-to-let investors. With average rents in Liverpool being approximately £700 a month, the city offers very attractive rental yields.
On the doorstep of the stunning Peak district, Sheffield is well connected to other major cities such as Manchester, Leeds and Nottingham. Its proximity to four airports also makes it strategically well-located for trade.
Once again, Sheffield has a strong student population and this represents 10% of the city’s population. Sheffield offers a diverse range of high quality developments for the young professional and student market and character properties which are attractive to families. With average properties priced at around £170K, rents of around £736 can be achieved, making Sheffield an attractive proposition for buy-to-let investors.
There is no doubt that Northern towns and cities represent an excellent opportunity for buy-to-let investors. Whether you’re looking to attract young professionals, students or families, it pays to do your research and choose your property investment carefully. If you’re looking to get the inside-track on property investment in the north, then give us a call and we’d be happy to advise.