North West Investors Return to Buy-to-Let Market for High Yields

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50% Rise in Investor Activity Observed in the North West

Lomond’s Quarterly Insight for the start of 2024 suggests a more confident housing market as buyers and sellers anticipate a cut in interest rates. The upcoming General Election is also causing less uncertainty than usual as sentiment conveys this one is a ‘foregone conclusion’.

The report’s regional breakdown also gives an interesting snapshot of the North West property investment market.

According to Lomond’s regional experts, they have experienced a 50% rise in investor activity this year compared to last year in the North West. They have observed some smaller portfolio landlords exiting the sector, but these investors have been replaced by increased activity from larger landlords or investors working to expand their property portfolio.

Investors are being lured back into the North West market thanks to the good deals available and potential yields of over 8%, but it is still important to carefully choose the investment location. It is also projected that rents and capital values will continue increasing in the medium and long term.

Learn More: Read the RWinvest buy-to-let property guide to learn more about stamp duty on buy-to-let.

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Manchester City Centre Identified as Prime Investment Hub

Rental growth in the North West shows some impressive numbers, with Manchester City Centre rents up 47% in five years.

Stockport is up 45% and Chester is up 35%. At the same time, house prices in Manchester have grown 0.8% annually.

According to the report, property price growth has been subdued due to an uneven market. Still, the UK average was -0.5%, suggesting that Manchester managed to avoid the price dips that affected many areas, indicating particular resilience in the face of a sluggish market. We have published a useful resource detailing the stamp duty wales has in force as well as other useful property investment companies facts and figures.

Manchester City Centre has been identified as a prime investment hub due to strong rental demand, high capital growth potential, and affordable prices in certain areas. The report also cites the city’s dynamic economy and growing student population as reasons for the increasing interest in Manchester property investments, especially among those looking to invest in student accommodation.

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Strong Activity in North West Sales Market in Q1

The analysis also suggests a solid start to the sales market in 2024.

Activity has been strong across all buyer groups, with more sellers entering the market, and fall-throughs have reduced. There has been an uptick in buyer registrations from 1700 in January to 2750 in February. Sellers who price realistically achieve sales within two weeks of being on the market.

Jason Watkin, Lomond’s Regional CEO for the North West, said: “With strong rental growth, anticipated mortgage rate drops in the latter half of the year and capital growth poised to rise soon, current and prospective landlords have the prime opportunity to capitalise on investments.”

Find out more about the UK property investment scene with our buy-to-let area guides highlighting topics such as Milton Keynes investment properties and available investment property in Norwich.

Author

Jessica Ferris

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