The North is the Place to Invest in Property in 2018
Now that we have rung in the new year, people’s thoughts are turning back to business. Across Britain’s industries, predictions are being made for 2018 – and the property sector is no exception.
We have been reporting for some time now on Manchester’s continued success as a buy-to-let location, and this looks set to continue in 2018. Experts are already predicting great things for our region’s rental market this year, which comes as no surprise to us as our lettings and sales alike continue to be busy.
Interestingly, it’s not just Manchester that’s being cited as a buy-to-let hotspot for 2018 – several of our neighbouring towns and cities are also forecast to do well, suggesting that the future of rentals is in the North.
Buy-to-let in Manchester
Industry leaders have been quick to point out that Manchester had another excellent year in 2017, where property investment is concerned. And, as James Cameron, director at Vesper Homes, says, ‘We expect 2018 to be even better’.
Cameron points to the growth of the build-to-rent sector as a reason for the continued high rental yields in our city: ‘The influx of aparthotel schemes, which generate around 15pc additional rent per week, have pushed up rental values in Manchester. Our clients are achieving 10pc to 14pc on properties that are three to five years old and slightly less on new build, and the entry point is just £150,000 for a one-bedroom flat’. We can assume that this trend will only continue as more apartments come to market in 2018.
In addition, as thepropertyhub.net reports, rental yields are, on average, twice as high here as in London. With 30% of the city’s housing stock being private rentals and hundreds of thousands of students being resident here, keen investors are combing Manchester for what some consider to be the best investment opportunities in the country.
It’s looking good for our neighbours, too
Another spot for the property savvy to check out in 2018 is Liverpool. The creation of new jobs and the development of new housing are giving the city a new lease of life. Although house prices remain low compared with the national average, the benefit of Liverpool is that an investor can build up a property portfolio at a relatively low cost but with excellent returns. In fact, property analytics company Hometrack has found that Liverpool offers one of the best house-price-to-earnings ratios in the UK.
Like our own fair city, Liverpool is also home to a healthy student community, with up to 60% of graduates choosing to remain in the area after finishing their studies, thus leading to greater investment and improved prospects for the area.
…And it doesn’t look grim for the rest of the North, either!
All this is good news for the North West, but it seems that northern property in general is having a moment. Leeds, Sheffield, Hull and Bradford are all expected to have increasingly competitive rental markets this year and are therefore being touted as areas with great investment potential. Some of the reasons for this include the continued work to deliver HS2, the high-speed rail link that will enable northerners to reach London (and vice versa) in little over an hour, and the promise of the Northern Powerhouse. It’s the continued growth of Leeds as a business hub that is driving developments in these other northern cities as commuters and investors seek out good-value property locations in the surrounding areas, thus injecting life into sales and rentals markets across Yorkshire and the Humber.
This is all good news for Manchester, too, given that the proposed HS3 rail link will connect our city with Leeds in less than half an hour, putting us practically next door to each other and, importantly, opening up opportunities for business expansion in both cities.
Are you looking to invest in property in 2018? Why not let one of our expert advisors talk you through our property portfolio today? We have property for sale in Manchester and Liverpool.
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