Traditionally, London and the South East have been the UK property market’s fastest rising and most lucrative region. High demand and shortage of supply have combined to see prices produce double-digit annual increases in the past. For many, this has been very good news. For others, it has quickly priced them out of the market.
So now, more than ever, entrepreneurs and other investors are starting to look outside the capital at different parts of the country that show great potential as property hotspots. While the UK government’s commitment to creating a so-called “Northern Powerhouse” has still to be put to the test, the early signs are that some of the north’s major cities could become great targets for investment.
Of course, for anyone looking to invest in rental property, the very first step will be to scope out the best “buy to let” mortgages available. This is where experienced mortgage broker from a respected name like Trussle from a respected name like Trussle will be invaluable. This is because they will be able to find the best rates as well as ones that may need a lower deposit. Systems such as this have made the process of finding the best mortgage much more efficient. This could be particularly critical given the recent Bank of England prediction that an interest rate rise could soon be on the way.
As to which particular cities that would-be property investors could consider, here are three leading contenders –
In the last couple of decades, Manchester has seen a major rebirth. Large developments, including Salford Quays (although not technically in Manchester) and Spinningfields, have helped create an exciting and vibrant urban environment. With an adult population with an average age of around 33, it also means that there is a plentiful supply of potential tenants.
And, with an average rental yield of over 7% and property prices predicted to rise by 28% between now and 2025, it certainly deserves closer examination.
The city may have recently lost its UNESCO World Heritage status, but this should have no real effect on its desirability for investors. The comparatively low price of property in the city – averaging at around £158,000 – means that you’ll get a great deal for your money. And the vibrant nature of Liverpool’s regeneration continues to attract people who want to live in this lively and very iconic city. The potential rental yield maybe a little lower than Manchester’s at 5.9%, but the property price rise projection by 2025 is an identical 28%.
“Leeds” (CC BY 2.0) by Tim Green aka atoach
Last on our list is the West Yorkshire city of Leeds. It’s home to the UK’s biggest banking and finance center outside London, and the arrival of Channel 4 in the city has also put it firmly on the media map. Average property prices are the highest of the three cities featured here at £210,000, which gives you an idea of the level of demand. With a rental yield of well over 6%, it makes for a very appealing choice.
So now could be the time to consider one of these three options seriously – and with the “leveling up” agenda very much part of the government’s plans, it could well become an even better investment for the future.