Should you Invest in the North West?

by | Mar 11, 2020 | Investments

Finding the best places to invest in property can be challenging and takes time, research and experience. Here at Hawkhurst Invest we constantly look at investment opportunities as they become available.

They take many forms including:

  • Refurbishments
  • Ready tenanted flats
  • New Build Developments
  • Existing property for sale

All of these opportunities are available in all regions of the UK, but how do you identify the best opportunities to add to a property portfolio?

There are many factors to consider, but we believe that there is significant opportunity in the North West of England.

The economy and population show a positive economic picture overall:

  • The region has a population of 7.2 million people and is made up mostly of Lancashire and Greater Manchester
  • The population is anticipated to grow by 3.4% by 2026, increasing housing demand
  • The North West economy contributes £228,000 million to the UK economy- 9.5% of GDP
  • There are over 400,000 students living in the North West with universities in Liverpool, Preston, Bolton and Manchester.

And of course with the recent announcement that HS2 will go ahead along with its £100 billion investment in the region, and the Northern Powerhouse designed to link the economies of the major cities through investment in skills, innovation, transport and culture, the economic future of the region is positive.

A recent report published by specialist lender Kent Reliance shows that rental yields across the North West average 6.2%, the best rental return on buy to let in the UK.

So today rental yields are excellent and property prices are relatively low. Average house prices in some parts of the region are as low as £85,500.

Considering all of this information, current and forthcoming investment, the market today and how it is projected to perform we have identified three top reasons to invest in the North West:

  • Investment from HS2 and the Northern Powerhouse
  • Currently Low Property Prices
  • Increasing Rental Demand

But what does all of this mean for the property investor?

Put simply, there are two opportunities.

  • Investment today in property that can be acquired for relatively low prices compared to the rest of the UK, and strong returns on that investment.
  • Investment today for the future where there will be increasing demand for property coupled with increasing property values thanks to major investment in infrastructure thanks to HS2 and the Northern Powerhouse.

So with a growing population, a successful economy with major investment underway and low property prices there are opportunities for the property investor to add to their portfolio, and for the new investor getting started on their property investment business.

Of course the same challenges and risks exist in the North West as they do everywhere else in the UK, and that’s why we carefully research opportunities and work closely with our investors to identify the best options for them.