According to new research from Zoopla, Rents outside London are rising at their fastest pace for more than a decade, as tenants flock back to Britain’s big regional cities and towns.
Rents across major cities and towns outside London have seen the highest growth since 2008, with an increase of 5% in the year to July, reaching an average of £790 per month. This was up from £752 a year ago, meaning renters are paying an average of £456 more per year, with those in Nottingham, Newcastle and Bristol seeing the biggest hikes.
However rents are still falling in London, but that pace of decline has eased and prices may soon start to rise again after the supply of homes to let in the capital shrunk 58% in a year. While annual rental declines reached 9.8% in London in February this year, this had recovered to a 3.8% fall in July.
The North West has seen some of the highest rental growth, with Wigan and Mansfield recording double digit (10.5% and 10%) growth year-on-year.
Mish Liyanage, Managing Director of The Mistoria Group comments: “During the pandemic many landlords froze the rent or dropped it for tenants facing hardship, but now we are seeing landlords across the North West pushing up rent prices as tenant demand surges.
“There is clear shortage in available properties across Manchester, Salford, Bolton and Liverpool and we have seen tenant enquiries surge by 56% over the last 12 months. On average, 12 tenants are chasing each rental property in Manchester and the surrounding areas.
“The Northern town and cities provide investors with affordable property, with strong yield and good capital growth. Over the last six months, we have seen a surge in UK and international investors enquiring about property across the Northern Powerhouse region.
“For example, investor demand for Liverpool is up by 34% year on year. One of the UK’s most profitable postcodes with a total yield of 11.92% is L7, the postal area representing the Merseyside region of Liverpool. This area of Liverpool is home to the Royal Liverpool
University Hospital, Edge Hill station and Liverpool’s shopping centre and is a prime, close-central quarter of Liverpool. This area of Liverpool is a top location for soon-to-be students and young professionals looking for a less busy area of Liverpool, with a short commute into the city centre through accessible transport links.
“The student rental market is the most financially lucrative for investors and landlords if it is managed well. An investor can currently buy a four bed HMO in a good location for students and professionals, fully refurbished and furnished and tenanted for the coming year, for less than £175,000 in Liverpool.
“Investing in student HMO accommodation offers a long-term investment option, as the property is highly likely to be in constant demand throughout the calendar year. Typical rents are significantly higher for student properties, than a comparable buy-to-let property in the same city.”
The Mistoria Group is a high yielding buy to let investment specialist, offering HMOs and armchair investments in the North of the UK, generating combined net cash yield up to 13% (Rental and Capital Growth). For more information on the firm’s current available investments and the services it offers, visit us at www.mistoriagroup.com or email at firstname.lastname@example.org or call 0800 500 3015.