The North of England isn’t just synonymous with cheap pints, brit-pop and pies anymore! It seems that the North of England is capturing the attention of property investors like never before. Paragon Bank’s recent report, The Factors Driving the Buy-to-Let Market in Northern England, sheds light on why this region is such an attractive proposition for landlords. From affordable properties to strong rental yields, investing in property in the North can offer so much. Just ask our resident Mancunian advisor, Jade Pinkerton! In this blog, I will explore some of the highlights from Paragon’s report into Norther property, and I will also talk about why working with a Northern property specialist is so important as a buy-to-let investor.
Affordable Property Prices
For many aspiring landlords, affordability is a crucial consideration. According to the latest ONS (Office for National Statistics) data, some of the most affordable local authorities in 2023 were located in the North West, North East, and Yorkshire and The Humber. Cities like Sunderland, Bradford, and Burnley offer property prices significantly lower than those in London or the South East, making it easier for investors to enter the market or expand their portfolios. This affordability doesn’t just benefit first-time landlords; it also offers established investors the chance to diversify their investments without overstretching their budgets. With lower capital requirements, the barrier to entry in Northern property markets is far lower than in the South.
Strong Rental Yields On Property In The North
Northern regions don’t just offer lower property prices; they also deliver excellent returns on investment. Paragon’s lending data highlights that landlords in the North West, North East, and Yorkshire and The Humber consistently achieve rental yields above the national average.
These higher yields are driven by a combination of lower purchase costs and robust rental demand. For example, cities like Manchester, Newcastle, and Leeds see steady rental growth due to thriving job markets, strong local economies, and large student populations. For investors, these factors mean a greater potential for long-term profitability.
High Levels Of Tenant Demand
One of the biggest concerns for landlords, even if their portfolio is generally doing well, is ensuring a steady stream of tenants—and it certainly seems that the North delivers. Across Northern England, tenant demand remains strong, bolstered by several factors:
- Industry: The North is home to thriving industries such as advanced manufacturing, digital technology, and logistics, creating job opportunities that draw people to the region.
- Universities: Cities like Sheffield, Durham, and Liverpool have large student populations that require rental accommodation, contributing to consistent demand.
- Flexibility: The shift towards remote and hybrid working has made renting in affordable areas with good transport links increasingly appealing.
Paragon’s report confirms what many landlords already know: Northern properties are rarely vacant for long! Meaning that landlords are earning more money, more steadily, and for longer!
Lower Purchase Costs For Property In The North
Stamp Duty is another area where Northern England offers a financial advantage. Thanks to lower property prices, landlords pay less Stamp Duty on purchases compared to properties in the South. Especially since the new stamp duty rules that have been introduced in the latest budget. This cost-saving can be significant, especially for those building a portfolio of properties.
For example, a typical buy-to-let property in the North might incur thousands less in Stamp Duty than an equivalent property in London, leaving landlords with more funds to invest in renovations, marketing, or additional properties.
Expertise In Northern Buy-to-Let Mortgages
Investing in property, although a lucrative way of making a living, can be very tricky to do. That’s where our team can help. Our senior mortgage advisor Jade Pinkerton, originally from Manchester, specialises in buy-to-let investments in the North of England. With first-hand knowledge of the region and extensive experience in the mortgage sector, she can provide tailored advice to help you make the most of your investment. Contact our team today to speak with our Northern buy-to-let wizard, and start making the most of this booming market.
