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North West Buy-to-Let Expected to See Significant Returns

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    North West Buy-to-Let Market Leads the Way for Potential Returns According to Savills

    The North West is a part of the United Kingdom that can offer excellent-value properties and generally good yields, especially compared to the national average.

    According to the HM Land Registry UK House Price Index, the average house price in the North West is £215,859. The same index puts the average UK price at £292,049.

    With figures like that, it’s no surprise the North West attracts people looking for buy-to-let investment properties.

    However, new research from Savills suggests that the North-West buy-to-let market is one of only eight property-based assets that will enjoy annualised returns of over 8%.

    Let’s look at the study in more detail.

    And if you want to read more articles about the North West buy-to-let market, venture over to our guides on apartments for sale in Liverpool and the best areas to buy in Manchester.

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      What Did Savills Say About the North West Buy-to-Let in 2024?

      2023 was a turbulent time for the UK property market. Following a pandemic, crises in Europe and the Liz Truss/Kwasi Kwarteng mini-budget, increased inflation and interest rates affected mortgage and house prices.

      However, a price drop was to be expected following the period of huge buyer activity following the COVID-19 pandemic. The subsequent inactivity and price stagnation made prices more manageable after a significant property value increase in 2022.

      Savills points to this turbulence – as well as build cost inflation and regulation changes – as the reason for suppressed activity in the residential sector over the last 12 months.

      However, inflation fell to 3.9% by the end of 2023. While it still has some way to reach the Bank of England’s 2% target, Savills expect more stability in the homebuyer and buy-to-let markets moving forward.

      Increased tenant demand is a side effect of such a turbulent year in the housing market. This led to increased rental prices across the country. Savills predicts rent prices will grow 18.1% over the next five years. As such, buy-to-let investors who are less reliant on mortgages stand to make a considerable return on their investment.

      Savills’ cross-sector UK forecast suggests that property investors with portfolios away from the capital stand to make significant profits. In fact, Savills predicted a 9.2% return in the North West over the next 12 months.

      Expand your buy-to-let knowledge: Interested in discovering more about the UK buy-to-let scene in other parts of the country? Check out our Middlesbrough buy-to-let and Exeter buy-to-let area guides.

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        What Does the North West Offer to Buy-to-Let Investors?

        As previously discussed, the North West offers good value properties and high potential yields for buy-to-let investors. However, the region also has numerous other attractive factors that could make the North West the best place to invest in property.

        The North West is home to two of the country’s most popular student cities: Liverpool and Manchester. They have seven major universities, including the University of Liverpool and the University of Manchester. There are 60,000 students in Liverpool and over 100,000 in Manchester. As such, buy-to-let investors may have some good fortune renting out HMOs or purpose-built student accommodation like ELEMENT – The Quarter.

        Those cities also have a thriving tourism industry, particularly Liverpool. Thanks to four huge football teams in Liverpool and Manchester and massive musical heritage in both cities, Liverpool and Manchester attract over 100 million visitors a year. This opens the door for property investors who are looking for short-term rental opportunities or serviced accommodation aimed at tourists.

        Find out more: If you want to know more about buy-to-let in Liverpool, check out this handy rundown on investment property for sale in Liverpool.

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        Author

        Dale Barham

        Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.

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