We’ve written previously about the advantages of investing in the North and Midlands and we’re updating you on our latest insights for one simple reason. We believe that the North and Midlands are the best places in the UK for property investment not only now, but in the future.
Top 3 Reasons why the North and Midlands are the places to invest
1. Low property prices
With new developments coming onto the market all the time, there are regular opportunities for property investors to take on high-quality new-build apartments. That’s a great opportunity for first-time investors and professionals adding to their portfolios. And new properties don’t need renovating or the level of maintenance that older properties require.
Of course, older properties are also available at lower prices than elsewhere, so opportunities exist here too.
2. The Northern Powerhouse and Midlands Engine
Despite the Coronavirus pandemic, this investment continues. And that means £multi-billion investment in regeneration projects to drive economic growth. That’s a benefit to local people in terms of jobs and quality of life. But more importantly, it makes the North and Midlands attractive to businesses looking to expand. So relocating businesses particularly in the tech sector are creating jobs and therefore housing demand. So the demand for rental properties is increasing in line with this.
3. Regional cities have large student populations
Many cities in the North and Midlands- like Birmingham, Newcastle and Manchester, have large student populations. And despite Coronavirus, these populations have returned to these cities as universities reopen. For property investors interested in student rentals, there will always be opportunities in this area.
What are the benefits to property investors in the North and Midlands?
1. High rental yields
Buy to Let rental yields in the North and Midlands continue to outperform other areas of the UK.
- 6.20% – North West
- 5.90% – North East
- 5.40% – East Midlands
- 5.10% – West Midlands
This compares to an average of 4.10% in London and 4% in the South East. So the numbers speak for themselves. Now consider that average house prices in London and the South East far outstrip the North and Midlands, and the proposition begins to become clearer.
2. Strong long term investment potential
Not only are rental yields higher and house prices lower in the North and Midlands, but property prices are predicted to increase.
Estate agent Savills has recently published its predictions for house price growth over the next 5 years:
- 18.2% Midlands
- 24% North West
- 20% North East
- 21% Yorkshire and Humber
So for investors looking at long term investments as well as rental yields, the outlook remains very positive.
3. Sustainable, stable economic growth
There are two key drivers to the success of the Northern and Midlands economies. Firstly, the investments in the Northern Powerhouse and Midlands Engine. This means long term need for housing, and stable employment growth as businesses relocate and grow in these regions.
Secondly, the stability and spending power of student populations in regional cities. This large population spends money in local economies safeguarding jobs and businesses, fueling stability. Not only that but a proportion of those students will remain to fill new jobs, also fueling housing demand and ultimately demand for rental properties.
So we believe that the North and Midlands are regions where property investors should be considering moving into, or expanding their portfolios in. The investment in the Midlands Engine and Northern Powerhouse will continue, so the long term forecast for employment growth, housing demand and house price growth we believe are accurate.
To discuss the opportunities in more detail simply drop us a line to arrange an appointment, or visit our website