A survey has revealed that the north-west is the hottest region outside of London for overseas investment.

According to the research, which spoke to decision makers within the industry, participants believe the north-west region would only be pipped by the south-east, with investments split between both commercial and residential properties.

Of those surveyed, 33% said that over half of all investments will come from abroad in the next 12 months. On the other hand, two-thirds of respondents believe that those buyers priced out of London will turn their attentions towards growing regions instead. 

Away from the capital the largest investors are believed to be institutional investors and pensions funds, closely followed by high net worth individuals and private companies.

“It is clear there is a scarcity of investment and development opportunities in London, and that now investors are looking further afield within the UK than in previous years,” Howard Freedman, RSM’s UK Head of Real Estate and Construction, commented.

“I think this is good news for the property sector in the regions, and one that I think both commercial and residential property owners need to look to potentially take advantage of over the coming year.”

Major northern cities such as Manchester and York represent the best opportunities for investors, with Manchester being named as HSBC’s buy-to-let hotspot for 2015 and both cities experiencing capital growth at a rate higher than in 2007.