It’s good news for the property investment market as it is predicted that the value of UK buy-to-lets is set to top the £1 trillion mark by this time next year.
The Council of Mortgage Lenders (CML) has found that the industry was worth £990 billion in 2014 and that the stock of private rental accommodation has grown by an astonishing 70% since the financial crisis of 2007.
Private rentals funded by buy-to-let mortgages now accounts for around a fifth of the value of UK residential properties overall – a figure that is continuing to grow, indicating that finance for property investment is becoming ever more accessible in the UK.
Even more encouragingly, Manchester remains the top hotspot for rental yields according to data accrued by HSBC, with returns of around 8%, showing that our city is the place to invest in 2015.
In Manchester, the average house price has gone up 4% over the last year, and rents have risen in line with this increase. Moreover, over a quarter of all housing in the city is now owned by private landlords, indicating the popularity of both renting and investing in the city, which shows no signs of abating.
These markets benefit from a large proportion of transient residents in the area – people who spend time in the city to work or to study but don’t want to put down roots by buying a property themselves.
Alongside Manchester, another North West town, Blackpool, is also a current good bet for property investment (7.3% yield), according to the data, as is Hull (7.8%). Our neighbouring city Liverpool came eighth on the list, with healthy rental yields of around 6.5%.
In contrast, some areas of London are only delivering around a 3% rental yield for investors, making these places unattractive to those serious about making money from property. Even the top borough for buy-to-let investment – Newham – is only offering around a 5.2% annual return at present. It seems, then, that things are looking good for the property market in the North!
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