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North West Rents Rise at Fastest Rate Outside London

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    North West Sees Fastest Rental Rate Growth Beyond London

    The latest Goodlord Rental Index paints a promising picture of the North West property market, highlighting a significant increase in rents in the region month-by-month and year-on-year.

    Today, we’ll examine the Goodlord Index in more detail and explore the North West’s buy-to-let prospects for the next 12 months.

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      How Much Did Rents Increase in the UK Property Market?

      In January, the rental costs in Greater London rose by 1.8%, reaching an average of £1,968 in the capital, according to the Goodlord rental index. Meanwhile, prices increased by 1.5% month-on-month in the North West, making it the top region outside of London for rising rental costs.

      Goodlord’s CEO, William Reeve, noted that January typically sees a slower market, with new tenancies taking a few weeks to gain momentum after the holiday season. The unexpected rise in month-on-month rents and consistently substantial year-on-year increases suggest that the market remains robust.

      Reeve also pointed out the potential for exciting developments in the coming months, anticipating effects on the lettings side due to increased activity in the housing sales market.

      Analysing the year-on-year data for January 2024 compared to January 2023, the North West experienced the most significant rent increase, rising by 9%. On the other hand, the East Midlands saw the slightest difference, but rents still increased by 5.5% year-on-year.

      Void periods – the average time a property stays vacant between tenancies – extended from 20 days in December to 22 days in January. Despite this month-to-month increase, voids have decreased compared to the previous year, when January 2023 recorded an average of 23 days across England.

      The East Midlands currently has the longest void periods at 28 days, while Greater London has the shortest at 18 days.

      Find Out More: If you’re from overseas and considering investing in real estate in the UK,  check out our guide on how to buy property in the UK as a foreigner.

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      Could the North West Be Good for Buy-to-Let Investors?

      With the North West leading the way for rent increases outside of London, it’s only natural for buy-to-let investors to pay attention to the region. Rents may be increasing, but does the North West offer a promising landscape in 2024 for those buying a house to rent out?

      According to Savills, the North West is expected to be the most lucrative market for buy-to-let in the UK in 2024. The company’s cross-sector forecast singles out the North West among other property investment opportunities and expects the region to enjoy returns of 9.2%.

      In addition, Savills also expects the North West to see capital growth of 20.2% by 2028 – one of the highest in the UK.

      The North West has better-value property prices than the national average. According to the HM Land Registry UK House Price Index, the average property price in the UK is £290,353. The average property price in the North West is £214,925.

      If you examine the region further, you’ll find that buy-to-let in Liverpool offers an even cheaper house price average, coming in at £177,076. In addition, Zoopla puts the average gross rental yield in Liverpool at 7.43%, which sits firmly in the top 10 for the rest of the country. With plenty of regeneration, a strong economy, a considerable student demographic and a bustling tourism industry, Liverpool is an attractive prospect for tenants and buyers alike.

      Explore the UK property market in more depth with our updated buy-to-let guides:

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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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