Research Shows Landlords Are Buying Homes in North of England Over Other Regions
Research shows that buy-to-let landlords are buying properties in the North West and North East more than other places in the rest of England – drawn to those areas due to better yields and reasonable property prices.
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North West Appeals to Buy-to-Let Landlords
Benham and Reeves Estate Agents analysed the number of additional properties during the years 2020-21 and 2021-22 across England.
According to the study, the housing market saw an increase of 19.5% in second-home purchases. Transactions rose from 230,900 to 275,000 between April 2021-22 as the country moved forward following the pandemic.
Between 2021 and 2022, purchases of second homes increased by over 25% in the North West and North East. In real terms, the North West increased from 34,000 in 2020-21 to 41,900 in 2021-22.
Meanwhile, the North East saw an increase from 11,500 to 15,000.
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Why Do People Choose the North for Second Home Purchases?
These findings echo a similar sentiment found in the Aldermore Appeal Index. The index revealed that people favour the North West over any other area in England regarding property purchases.
Cities in the North West are known for strong rental yields and affordable housing. According to the HM Land Registry UK House Price Index, Liverpool’s average property price is £180,268, with the best Liverpool property investments potentially seeing rental yields of around 7% or higher in certain postcodes.
By contrast, the UK average house price is £291,044, and the average rental yield hovers around 5.2%.
In addition, Liverpool has a burgeoning economy, thanks to massive regeneration in the Knowledge Quarter and Baltic Triangle and development schemes like Liverpool Waters.
These regenerative efforts have led to an increase in city centre accommodation, with properties like Element The Quarter (Liverpool’s first eco property) and the upcoming Gateway (Liverpool’s answer to New York-style living) leading the way for luxury city living in desirable UK buy-to-let hotspots.
The findings from Benham and Reeves show a considerable increase in activity in Liverpool and Manchester, suggesting the North West’s buy-to-let benefits sway landlords.
In the North West, Liverpool and Manchester property investment saw a 37% and 39% increase in purchases between 2020-21 and 2021-22.
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How Did Benham and Reeves Respond to the Research?
Marc von Grundherr, director of Benham and Reeves, had the following to say about the uptick in property purchases in the North West:
‘Making strong returns as a second home investor is no longer a guarantee, so it appears that more are prepared to look further afield by purchasing homes in the regions where yields are stronger due to the lower initial cost of purchasing a property. A handy guide has been produced explaining what an offplan property investment is all about.
‘Manchester and Liverpool have been popular for some time, though growing interest in North Eastern towns like Hartlepool and Middlesbrough has been aided by low house prices. It is apparent that investing in real estate in the UK is becoming more attractive, especially to overseas investors. ‘For those who are looking to purchase an additional dwelling to live in, rather than as an investment, the beautiful nature of the landscapes in the North of England also act as a big pull to those that can afford to buy a second home.
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