North West Good for Rental and Price Growth
The North West leads the way for rental growth and asking price growth, according to the latest Asking Price Index from Home.co.uk.
Released in October, the Home Index – which accounts for over 100,000 buy-to-let properties for sale in the UK – shows gross yields continue to move in the right direction for landlords while supply and demand are still wildly out of proportion.
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North West Property Rental and Price Growth
According to the index, property prices fell in four UK regions since the previous month. However, the most significant price rise was in the North West. In cities like Liverpool and Manchester and the surrounding towns – prices improved by 1.1%.
Rental growth increased across the UK (around 9.7% year-on-year). The North West led the growth charts, with rents in the region rising by 15.0%. Meanwhile, Greater London had the lowest price growth at 6.6%. However, Greater London also enjoyed the best increase in supply. Why not read about some of the best property investment options in 2023 with the RWinvest guides.
These figures support the North West’s reputation as one of the top places in the country for property investors. With massive regeneration efforts in Liverpool and Manchester, thriving student populations and good graduate retention rates, the North West offers good-value properties and lucrative rental yields.
See the latest RWinvest UK House Price Index (UK) for an expansive market overview.
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Supply Still Down for UK Properties
So, what else did the Home.co.uk index say about the UK property market?
Regarding new instructions entering the housing market, the supply rate saw no change year-on-year. However, the overall supply was down by 8% compared to September 2018.
The largest decrease in supply occurred in Scotland and Wales – -7% and -8% respectively.
In addition, asking prices for England and Wales properties experienced a 0.2% growth during September. As such, the year-on-year fall in asking prices was only -1.5%.
Home.co.uk also found that the time on the market for unsold homes in England and Wales increased by an average of six days during the month. However, this increase was to be expected according to seasonal expectations. Currently, the median time on the market sits at 90 days. However, pre-COVID median times for October 2019 were 99 days. Learn more about how to invest in buy-to-let property with our free insights guide.
On available stock, Home’s index found that England and Wales unsold property stock surpassed the October 2019 total but fell short of the October 2018 figure. The current figure stands at 473,188.
The index shows that northern regions like the North West, North East and Scotland lead the way regarding annualised property value increases. Conversely, the East of England offered the sharpest decline at -3.4%.
Looking towards the capital, London boroughs Haringey and Enfield experienced the largest growth in asking rents. However, the capital’s rental growth rate dropped dramatically over September.
This is due to numerous factors, notably a cost-of-living crisis forcing tenants to look to more affordable parts of the UK – such as Liverpool. Research into other regions with our Reading buy-to-let guide or our Islington property investment investment guide.
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