2016 looks to be a busy year for buy-to-let investment in the North of England.
Recently, Rightmove.com predicted that the average price of a property in London could increase to a cool £1m later this year, on the back of high demand, cheap mortgages and lack of accessible housing.
Savvy
Differing trends in the market, coupled with upcoming legislation changes mean that savvy investors could save significantly by purchasing lower entry real estate properties in the North.
Lower house prices, increased yields and extortionate southern property prices are all leading the North of England to become a prime location for buy-to-let landlords looking to expand their portfolio.
What’s more, the lucrative student market is also continuing to thrive, with many of the UK’s most popular universities located in northern regions.
Location, location, location
Experience Invest has moved to highlight the top 5 northern cities, where buy-to-let and student property investment is set to thrive in 2016:
Liverpool
The Merseyside city has notoriously been a location for high rental income for a number of years, offering some of the greatest returns in Britain. 25,000 purpose built student rooms have been promised by 2017, therefore there is set to be a lot of potential for prudent landlords.
Manchester
At the centre of the Northern Powerhouse Scheme, Manchester is arguably the best northern location in which to invest. A growing population means there is increased demand for housing, from tenants and investors alike. The east and north of the region have good rental yields lower priced properties.
There are also 105,000 students currently attending four major universities in the city, again giving landlords plenty of demand for accommodation.
Newcastle
Offering favourable returns, the North East has often been seen as a lucrative investment area for buy-to-let. Yields of 9% are regularly achieved in central Newcastle, in comparison to a nationwide average of 6%.
Once more, student population in this city is thriving. Since 2008, a further 11,000 student rooms have been given the go ahead to accommodate demand.
Where are the Northern hotspots for BTL investment in 2016?
Sheffield
Benefiting from a large renovation in the previous ten years, the Steel City is now firmly back in contention as a top investment location. Boasting a young population, Sheffield’s rental property is being taken far quicker than supply becomes available.
The city has one of the cheapest tram networks in the country, has the superb Meadowhall shopping complex and a thriving music scene. 60,000 students attend the city’s two universities and formerly being one of them, your author can confirm that Sheffield is the place to be!
Leeds
As the 3rd biggest city in the UK, Leeds is undoubtedly popular amongst investors. With an expanding population, the city has seen more and more students congregate in Headingly and Hyde Park on its outskirts.
In the centre, former warehouses and Victorian terraced buildings are interspersed with more modern apartment blocks and offices. Despite being a popular location, house prices are nowhere near those seen in the capital.