Manchester still top city for landlords
Manchester remains the top city for rental returns, according to news reports unveiled last week.
The research drew comparisons for all cities across the UK and considered a number of factors, including capital gains and rental yield. From 2010 to 2016, the report highlighted that the average yield found in Manchester was 6.8% - resulting in Manchester cementing its number one position as the most profitable city in the UK for rental yields.
Liverpool and Sheffield also made the top 20 buy to let hotspot list with both seeing an average yield of 5.4% over the past 6 years.
As the government continues with the Northern Powerhouse initiative, cities such as Manchester will continue to prosper as the north-south divide gets smaller and smaller. Plans are already in place to change the face of the transport system in the north with the HS2 and the Peak District tunnel; both schemes will provide a further boost to the economy, creating a wealth of jobs and further fuelling a thriving property market.
Graham Davidson, managing director of Sequre Property Investment, comments on the continuing rise of Manchester and the North West -
“For many years we’ve been championing the north and it’s no real surprise that Manchester has made the top spot. The North West in particular has shown some serious longevity and has proven to be a consistently profitable area for buy to let landlords. Over the past 6 years, rental yields in this area have remained steady and this gives investors’ confidence that purchases in this area will yield a decent return in the long-run.”
“London and the southern areas have always been considered a hotspot due to capital growth however, investors cannot rely on this aspect solely; as has been demonstrated in the slowdown of prices. Rental prices are so high in London, that tenant demand is decreasing and working professionals are moving into more affordable locations to live and work. With many businesses such as the BBC and ITV moving to the north, this has naturally led to an influx of people moving into Manchester and the surrounding areas.”
If you’re considering purchasing a buy to let property in the North West, contact our team today. We specialise in sourcing quality investment property in key cities across the UK, negotiating discounted prices with banks, receivers, developers and house builders. Our service is completely end to end and all investors benefit from a genuine hands-off investment. To find out more, call us on 0800 011 2277.