For a long time, London had always held a certain appeal amongst ambitious young people, students, professionals, and those keen to make their mark on the English capital. According to house market news, more people than ever before are moving out of London and heading to the North. During the first six months of 2018, 21 percent of Londoners moved to the North or the Midlands —  a 6% rise when compared to the start of 2008. But what’s making so many people leave London behind?

 When it comes to property, it’s easy to see the reasoning behind moving North. Over the last ten years, house prices in London have increased by 70%, with the average rent priced over £2,000 a month and property prices sold at £671,412 on average. Paired with higher costs of transport, food, and socialising, it’s clear how living in London would put a strain on most people, but even more so for those on or keen to join the property ladder.

Record numbers of Londoners are choosing to sell property in London and invest in property within the Northern Powerhouse. For a detached home down South, the average stamp duty cost is £14,780, compared to just £5,358 up North. Those who own property in London are often looking to sell up and move for a chance to buy much bigger, and better value properties elsewhere. To put things better into perspective, house market news has presented some shocking comparisons between London and Liverpool. For £100,000 you could buy a three bedroom terrace house in Kensington, Liverpool, whereas down in Kensington, London, a garage space is all you could get for the same property selling price.

House Sale

Aside from lower house prices, Northern Powerhouse cities  like Liverpool and Manchester have everything you need in a UK hotspot. Both Liverpool and Manchester are cities with a rich culture, fantastic attractions and amenities, world-class universities, and plenty of opportunity for capital growth. The Northern Powerhouse initiative is a likely driving force that’s helping to attract interest from down South. This initiative aims to improve the North of England by investing in education and skills, boosting transport and connectivity, and bettering general quality of life throughout the main Northern cities. Big plans are in place under this initiative, including Northern Powerhouse Rail, which aims to revolutionise the transport in the North and make connectivity between cities like Liverpool and Manchester easier than ever.

Earn Higher Net Return

Whilst selling London property to move up North is popular with homeowners looking to live in the area, it’s also a smart move for buy-to-let investors. London properties are losing value , with the focus being shifted onto Liverpool and Manchester as property investment hotspots. The average rental yields in these Northern cities are amongst the highest in the UK, with investment opportunities here at RW Invest offering yields as high as 9 percent guaranteed for two years, and with the lowest property prices sold in the UK from just £45,450. In contrast, London properties have an average yield of 3.05 percent due to decreasing rental price growth. Discerning investors recognise the potential behind selling their existing London properties to invest their money into a more worthwhile property.

Exciting regeneration plans under the Northern Powerhouse are set to improve the appeal of the North’s property market even further. Projects such as Liverpool Waters and St Johns in Manchester are going to bring new homes, work opportunities, and shopping and leisure attractions to the cities. New developments such as these mean capital growth and property prices are forecast to increase, with Manchester property prices expected to rise by 30 percent come 2022.

Manchester in particular has seen a record number of Londoners moving to the city. A total of 10,200 people moved from London to Manchester back in 2017, whilst only 8,870 people from Manchester decided to move to the capital. The area of Greater Manchester with the largest number of London movers is Salford, with around 360 more people moving to the area than leaving it. Since Salford is home to the impressive business hub MediaCity, it’s clear that a large amount of young professionals are being drawn in by the cities brilliant work opportunities. Manchester is also said to boast the most impressive student retention rate in the UK at a high 51.5 percent, which is expected to reach even higher figures of 70 percent in upcoming years.

Aside from the lower prices and growing opportunity, buying a house in Manchester or Liverpool can also be a lot more convenient and a way to better your quality of life. Whilst those working and living in London can expect busy and stressful commutes, properties like our One Baltic Square apartments are conveniently located in the Baltic Triangle, just a short walk away from the heart of Liverpool city centre. Research shows that longer commutes by public transport can have a big impact on our mental wellbeing and mood, therefore a lot of people used to the nightmare commutes of London will enjoy the change in pace of a smaller city centre.

One Baltic Square

With rising property prices forecast, but affordable property selling prices, investing in a property within the Northern Powerhouse is the best way to go for attractive yields and strong capital growth. Interested in leaving London behind and hitting the North? Get in touch today and our expert property consultants will offer you the advice you need.

Written by Amy Jackson | 13th November 2018

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