UK Property Market Shifts From London To The North West
North West Leads The Way As Property Investors Shift Their Focus Away From London
For as long as many of us can remember, London has been the focal point for the country’s property hungry investors. More recently, however, thanks to a surge in overseas investment in the capital that has pushed prices up, the nation’s legion of landlords are now looking further afield for the best deals – and the north west is leading the way.
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In fact, a survey conducted towards the end of last year showed that out of the top five performing cities in terms of rental yield over the last five years, three of them were in the north west of the country. Manchester was out in front with an impressive 6.02 per cent, while Liverpool (5.16 per cent) and Oldham (4.98 per cent) were not far behind – Manchester property investors are certainly reaping the rewards of this market shift.
Such yields are now almost impossible to find within the M25 thanks to the rising prices of suitable property for individual investors. Average house prices are now sitting at around £650,000 in London, whereas the north west average is a mere £177,000 in comparison. This is at a time when the average residential property for the whole of England and Wales is valued at being above £300,000, so it is easy to see why interest is increasing in the north west of the country.
The shift from London and the south east up to the north west of the UK has largely come about due to the shortage of viable options for smaller investors. While there is still certainly money to be made from London property investment, it is now largely the domain of bigger property investment companies and foreign investors rather than those who hold smaller portfolios.
For those investors operating on a tighter budget, areas such as Manchester, Liverpool and Oldham offer real value, and there seems to be plenty to go around at present, too. Properties that were once disregarded are now being snapped up by canny investors who can see the changing tide for the region.
Add to that the fact that developers are stepping up the amount of construction projects they are entering into across the north west and you have a new buy-to-let paradise for the UK’s smaller property tycoons.
Stronger growth than ever is expected for the north west over the next few years as the property market in the south begins to slow. This is great news for those who are looking to Manchester, Liverpool and beyond to bolster or begin their property portfolios.
North West Cities Adapt To The Rise In Popularity
As with so many other areas that have experienced increased interest from buy-to-let investors, cities across the north west have become fashionable, trendy places to live. High in culture and rich in nightlife, places like Manchester and Liverpool are once again attracting the young professionals that would have made the 200 mile trip down south just a few years ago.
Areas such as Salford’s Media City have brought in investment of another kind, too, creating jobs and wealth for the local region that was sorely lacking back at the turn of the millennium. This, in turn, has created a buzz around the area and made living and working in and around these thriving communities an attractive proposition for both local residents and those coming from further afield alike.