A new report has indicated that following the historic Brexit vote in the EU referendum, buy-to-let investors should look to invest in Northern locations, rather than the capital.
Research conducted by Assetz Property suggests that landlords could receive greater returns by investing in the property market in the North of England.
Rental yields
Buy-to-let landlords purchasing through Assetz Property can achieve yields of 8.5% in Leeds through their investment properties. Gross yields in London currently stand at only 3.5%.
Disposable income levels in Leeds are also way above those seen in the capital. The typical London salary is currently £40,087, meaning renters are left with an average of just £6,607 of disposable income. This is before features such as bills, food and travel expenses have been sorted out.
In Yorkshire however, despite the average yearly salary standing at over £10,000 less than in London, typical rent is just £11,244 per year.
Could the North offer best post-Brexit yields?
Reliable returns
Stuart Law, CEO at Assetz Property, notes, ‘with house prices in London set to drop and interest rates due to fall on savings following Mark Carney’s strong indication of an imminent base rate drop, investors should concentrate on yields and the monthly return on their investment. The potential relocation of thousands or tens of thousands of highly paid city workers to Paris, Frankfurt or Dublin who might have once lived or rented in London can only have a negative effect on the City, while the market in Leeds is likely to be far more stable.’[1]
‘Not only is it a fantastic draw for investors, as properties are, on average, more than £400,000 cheaper here than in London, but it is an ideal location for residents looking to get more for their money and achieve a higher standard of living than they could have in London for a lot less money,’ he add
[1] http://www.propertyreporter.co.uk/landlords/should-investors-shun-london-for-the-north.html