It shouldn’t be a surprise that with the number of planned developments in Manchester and Liverpool, property yields in these cities are amongst the healthiest.
Over the past 12 months, the northwest has seen the largest jumps in house prices in the country. With this, it should be no surprise that according to the latest Zoopla house price index, property within the cities of Manchester and Liverpool have seen the strongest yields.
Manchester itself has seen a positive rise of 9.5% overall, whilst the heightened demand of rental property has seen the market grow by 6.36% in the region. The Zoopla index also explains that it is currently the affordable markets that are seeing the highest price hikes. This indicates that investors should be focused on both affordable housing and rental properties, as they are high in demand.
When compared to London- a known market for consistently becoming more unaffordable for investors and buyers- property prices have rose 3.6% overall, with rental property such as flats rising by only 2%. Respectively, the northwest property market has tripled the growth of its southern counterpart within the same timeframe.
Steve Cox, chief commercial officer at Fleet Mortgages, believes that rental property retains its allure as a strong class asset and is supported by the wealth of finance opportunities available within the cities. He also adds, “As we move through the year it is likely that rates will inch up though. However, there are a wide range of opportunities for all types of landlords, wanting to purchase or refinance all types of rental properties, and that this should help bring much-needed supply into the private rented sector.”
However, some investors will find increased competition when securing properties, as demand is up 58% when compared to the five-year average as recorded during April 2022. Although this is a great sign for property investors who either own or want to extend their portfolio into the hotspot cities, it is recommended that investors search for a bargain to compensate with this demand. A great example of arising area is Greater Manchester’s Stockport. The town is currently turning investor heads as the area develops into a strong commuter town with easily accessible transportation into Manchester City Centre.
Thankfully, those contemplating their next investment should be encouraged by the current demand of property as the market is set to remain strong. With rising rates and rapid growth in areas in and around the outskirts of hotspot cities, now is the time to jump into the next venture.