North West Offers Higher Yields and Capital Growth for Investors Priced out of South East
The North West offers much higher rental yields and capital growth for the property investors that are priced out of the South East, shows new research.
According to the latest UK Cities House Price Index from Hometrack, London’s house price growth has slowed to a three-year low, as Manchester, Salford and Liverpool all record the highest house price inflation of the UK’s major cities.
Combined yields of 10% in Manchester, 12% in Salford and a huge 14% in Liverpool are attracting investors who have been priced out of the South East.
The Hometrack figures show that Manchester recorded house price growth of 8.9% in 2016 against a national average of 7.2%.
However, London recorded growth of just 7.3% – its lowest annual rate for more than three years.
The other cities recording higher inflation than London were: Bristol (9.6%), Oxford (8.1%), Portsmouth (8.0%), Southampton (7.9%) and Birmingham (7.5%).
The Mistoria Group – specialists in high yielding property investment – believes that investors can benefit from capital growth and excellent yields in the North West, which far outstrip the South East.
The Managing Director of the firm, Mish Liyanage, explains: “Lots of investors from the South East and overseas have invested in Liverpool and Salford, buying high-quality properties around the universities. They have also renovated shabby properties with a top-end finish and are experiencing good occupancy rates from students, with year-round demand.
“Investors are benefitting from yields well in excess of 14% within a two-mile radius of the three universities in Liverpool, and 12% yields near the University of Salford. These yields are more than double what investors can secure in the south.
He continues: “London is losing its charm for many investors, with its unaffordable property and low yields. Historically, investors have benefited from strong capital growth in the City, but even this is slowing.
“With Salford and Liverpool prices rising faster than any other cities, there’s never been a better time to buy. With low interest buy-to-let mortgages and a weak pound, UK and overseas investors can secure a low cost, high-yielding property. For example, investors can acquire a high quality, three-bed HMO [House in Multiple Occupation], which will house students, from £120,000 upwards. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth).”
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