A RECORD number of people are leaving London to move to Northern cities like Manchester. In 2017, 10,200 people left London to move up to Manchester, whilst only 8,870 chose to move from Manchester to London. When you look at the current state of the property market in London, with rising house prices, decreasing rental costs and low average yields, it’s not hard to see why people are looking to the North for their next venture. If you own a London buy to let property, take a look at these reasons to consider selling your current property and taking advantage of the opportunities up North.
The North is well-known for being more affordable than London and other cities down South. The average property up North is priced at £130,677 in Liverpool and £173,381 in Manchester. Compared to London’s £484,173 average, this price difference is reason enough for investors to consider selling their London property, with the chance to purchase multiple properties for the same price up North. Not only are house prices more affordable up North, but the cost of living is also significantly cheaper, meaning more affluent tenants will be happier to spend more on rental costs than in London where day to day costs are high.
Rental yields are one of the most important elements of any buy to let investment, dictating how profitable your investment will be. In London, high property prices and falling rental costs have left the city’s property market with some low yields of 3.7% on average. Up in Liverpool and Manchester, however, average rental yields range from 5 to 5.5%, with property investment companies like RW Invest offering some fantastic properties with yields as high as 9% guaranteed for two years.
Northern cities like Liverpool and Manchester aren’t what they used to be. Decades ago, the North was an area facing economic and social turmoil, with little prospects and a lack of opportunities. Fast forward to 2018, however, and these cities have come a long way since the days of crumbling grey architecture and empty streets. Today, Liverpool and Manchester are some of the most exciting and dynamic cities in the country, with regeneration projects like the Northern Powerhouse and Liverpool Waters in store to add even more value to the already thriving cities. It is for this reason that the potential for capital growth in the North is high, with plenty of big plans in place and no signs of slowing down.
Whilst the London property market is over-saturated, with the most notable demand for property being found in London’s less affluent boroughs, demand throughout Northern cities is increasingly high. Young professionals and students are driving the demand for more high-quality property in Northern cities, with Manchester and Liverpool alone having a combined total of around 155,000 students along with growing business opportunities. This is good news for investors who want to appeal to tenants who are keen to spend generously on rent for a well-located, high-quality property.