According to buy-to-let lender Fleet Mortgages, data showed that rental yields in the first quarter of 2021 were highest in the North comparatively to London which was at 5 percent next to 9.1 percent and 7.8 percent in the North East and the North West respectively.
Since the government’s pledge to level up and to equalise historical imbalances, investment interest in northern areas has boomed.
Let’s take a look at X7 of the best benefits to property investing in the North in 2021/2022 and beyond…
1) Northern Growth Predictions: Why Invest in UK Property?
With projections of big growth in the North, experts estimate house price increases of 27.3 percent by 2024 in the North West and expected increases of 20.5 percent in the North East overtaking London at 12.6 percent.
2) Lower Northern Prices Make Regions Attractive Property Investments
Lower prices in northern regions not only create for more attractive investments but also less of a risk for landlords whom may not be looking for long-term capital appreciation.
3) Tax Benefits See Higher Impact in The North
Temporary Stamp Duty changes have made for a property dash for investors and purchasers alike in 2021. Although, the threshold reduced from £500,000 to £250,000 at the end of June and will revert to normal levels at the beginning of October — there are still huge opportunities for investors and their property portfolios to be had as houses in the North offer relative but comparatively cheaper prices than the South.
4) Smart Buys with Commutable Links: Infrastructure Connecting Suburbia to Cities
Savvy investors look towards the upward trend in areas where business development and growth are occurring and where connections from suburban locations to cities allows for people to access them at speed — benefiting smart buys where tenants will also follow the boom in northern investment, which is set to soar.
5) Key Placement: Students, HMOs (houses in multiple occupation or house shares) and Single-Family Rentals
As further employers look to place themselves where the talent pool is and as property investment disperses itself North, the hunt for student property, HMOs and Single-Family-Rentals, increases too.
The hike in rental yields and property prices that can be attained by landlords in these regions makes the North a highly attractive prospect.
6) COVID-19: The Push for Outdoor & Garden Space
Market Financial Solutions surveyed people on what would be the most important feature when looking to rent and 92% said that gardens and outdoor space were “important” or “very important” to them.
Although not only an advantage to just the North, it’s an important aspect to consider when looking to add a property to your portfolio.
7) The North: A Wise Choice for Your Property Investment?
With house prices in the North usually rising above inflation and wage growth, the demand on rental properties has grown — with a population continuing to flourish the need for homes is a constant want in supply.
A wise choice for any first-time or seasoned property investor looking to take advantage in the benefits of house buy-to-lets in northern areas where links, economics and levelling up is creating big yields and rises.
At CSB we’re here to work alongside you and to help you forge ahead to locate the right property match for your portfolio in Pendle and the surrounding areas and to meet your investment needs.
At CSB we understand that a home is more than just a home and we know that buying and selling is more than just bricks and mortar to our clients.