There’s a lot of debate about where in the UK gives the highest rental yield, but recent articles have fallen to the conclusion that the North of England is a top place for property investment. With lots of potential for renovating or developing properties and an ambitious developing middle class, unlike the saturated areas around greater London. Is buying in the North for you?
One of the appeals of buying in the North is the generally lower house prices. Like anywhere, there are very expensive areas but you’ll almost certainly be able to get more for your money in Teeside or Tyneside than in most areas in the South East or the South West and there are plenty of good properties at good prices. House prices in these areas have been on the rise, too, and in the long term it’s likely that you should be able to generate some solid capital growth.
The generally lower house prices in the North tend to mean landlords have a little more room for developing or converting property. It has been popular lately for landlords to convert larger houses into blocks of flats and some development companies have been making good use of old industrial warehouses. You’ll, of course, need to take out unoccupied property insurance if you’re looking to take on a conversion.
One of the things that is drawing lots of landlords to the north is a wealth of new industry. As the UK tried to pull itself out of recession, plenty of businesses have been attracted to well priced land and a skilled but out of work labour force. This means that there are plenty of opportunities for landlords, providing both domestic and commercial lets.
The North is a great place to invest at the moment but there’s no substitute for good local knowledge of the area. If you don’t know the area, take the time to find a good agent and to explore what is a very wide area with a diverse population.