Revealed - North West top hotspots for property investors

Private rents in the UK have reached record highs, with a 23.4% rise in Manchester over the last 12 months, recent research from Rightmove shows.

Rental prices cooking

Looking back a year ago, the average advertised rent outside London is 11.8% higher, while in the capital it is up by 15.8%.

Coming in second was Chatham in Kent, where the equivalent increase was 21.4%, while Liverpool, which saw a 19.4% rise, came in third place.

The Powerhouse North has experienced dramatic rental price increases across the North East, North West and Yorkshire and The Humber, driving up yields for buy-to-let landlords.

According to the findings from Sequre Property Investment, the Manchester M14 postcode is returning the most optimal yields at 9.6%, followed suit by Manchester M13 at 7.2%, and Liverpool L4 at 6.9%.

Why investors should set their sights on the North

Daniel Jackson, sales director of Sequre Property Investment, comments: “Over the last 12 months, 56.4% of our investors have purchased property within the North West.  This represents a 20% increase year on year.  The average investment is £125,000 and the majority of buyers are opting for apartments, which are giving an annual yield of between 6-8%.”

“The recent significant investment in the region is helping drive demand for high quality, rental accommodation aimed at professionals. The Powerhouse North is currently worth £339bn to the UK economy and there are hundreds of billions extra earmarked for development projects such as the HS2; Northern Powerhouse Rail; £4bn of Leeds city centre projects; and £800m Salford University expansion.”

“We are seeing growing interest in Bolton, Greater Manchester, which has seen prices increase by 16.9% in the last 12 months fuelled by strong demand from investors looking at a location, that sits just 20 minutes from Manchester City Centre as well as strong University demand.”

Jackson also states that Bolton plays a valuable part in the Greater Manchester economy, which is the UK’s largest economy outside London with an economic output worth £4.6 billion. The town has also attracted over £1 billion of public and private investment over the past several years, a trend that is set to continue.

He continues: “Brand new apartments can be bought from as little as £100,000 with a return on investment of between 12-14%. Bolton retains a healthy mix of professional tenants, families and students making it ideal for investors wanting a strong yield and capital appreciation.”

“Bolton represents a great area for property investment, having seen house price growth three times the national average over the last 12 months. We are offering brand-new, completed apartments in Bolton with prices starting from just £101,500. What’s more, 3% stamp duty is also paid by the developer as well as a 12 month rent guarantee, making this one of the best value investments we have seen in recent times.”

Jackson concluded: “This deal represents incredible value when considering the high spec finish. Each property comes complete with flooring, washer dryer and fully integrated kitchen appliances included.  The development is perfectly located within walking distance of the town centre, with the University of Bolton and several parks, supermarkets, restaurants, and cafes nearby. Being just a 5-minute walk from the Bolton train station, residents are highly connected with Manchester just a 20-minute train or car journey away.”