For individuals seeking stable long-term financial investments, city centre apartments in the North West region of the UK have become increasingly attractive. In this blog, we will explore the reasons why investing in these apartments is a smart choice.
From high rental yields and capital appreciation to the convenience and strong demand in the North West, city centre apartments offer a range of benefits for investors, with recent findings from the quarterly survey by specialist finance firm Landbay stating 42% of UK landlords intend to expand their portfolio within the next 12 months.
High Rental Yields
The North West region of the UK including cities like Manchester and Liverpool, offers excellent opportunities for high rental yields.
According to TotallyMoney's 2021 study, Manchester ranks as the city with the highest average rental yields in the UK, at an impressive 7.55%, followed by Liverpool closely behind with a strong rental yield of 7.05% as the city undergoes major regeneration. The North West's vibrant rental market, driven by a growing population and a thriving business environment, makes investing in city centre apartments a lucrative option for investors seeking attractive rental returns.
Capital Appreciation
Investing in city centre apartments in the North West can also lead to significant capital appreciation with the region having experienced notable growth in property values over the past decade.
According to the UK House Price Index, the north west saw an annual house price growth of 7% since February 2023, with an overall property type difference of 6%. February's growth rate saw the average UK house price increase by £16,000 in comparison to the previous 12 months in 2022. These statistics indicate the potential for long-term capital gains, making city centre apartments especially in the north an appealing investment opportunity.
Convenience and Amenities
City centre apartments offer exceptional convenience and access to a wide range of amenities with both Manchester and Liverpool boasting thriving cultural scenes, shopping districts, and world-class sporting venues.
Additionally, these cities provide excellent transportation networks, making it easy for residents to commute and explore the surrounding areas. The presence of renowned universities such as the University of Manchester and the University of Liverpool also creates a steady demand for rental properties, particularly among students, ensuring a strong tenant pool with a high retention rate of around 50%.
Strong Demand
The North West region, especially Manchester and Liverpool, enjoys strong demand for city centre apartments. With growing populations and flourishing business sectors, these cities attract young professionals and students seeking a vibrant urban lifestyle.
Zoopla’s House Price Index for May 2023 reported weaker demand in areas where house prices have risen the most, leading many to sell their homes and rent in more affordable areas such as north west to accommodate the cost of living, in turn creating increased demand.
Additionally, the UK's economic stability and employment opportunities make it an attractive destination for professionals from all over the world, contributing to a sustained and consistent demand for city centre apartments, making them a reliable investment choice and a great place to capitalise on the thriving UK property market.
If investing in city centre apartments interests you, get in touch with a member of the Elavace team today to begin exploring your opportunities.
