"Property prices in the North West are continuing to grow, and with high rates of the employment in the area it is easy to see why there is such a demand for property."
With London dominating much of the property market for many years, it has been easy to ignore the rest of the UK if you are looking to make an investment. However, with house prices steadily rising outside of London and the South East, there are some other strong areas that should be considered.
North West Property Prices
Once seen as a part of the world that was comparatively in the doldrums, property prices in the North West are now starting to soar and are even outstripping the national average. Asking prices in the area have grown by 2.4% in a month, pushing the yearly change to 5.5%. With the national average only experiencing a 0.7% year-on-year growth, it is clear to see that the North West is one of the hottest spots for property at the moment.
Despite the economic challenges of the previous year, most of the country had seen an upturn in growth in the property sector. Yorkshire, and the East and West Midlands have all seen impressive growth, but it is the North West that is leading the way thanks to comparatively low house prices and high rental demand. For investors, key cities in the area will provide the capital growth prospects and high rental yields that make the North West such a draw.
North West Attractions
Investors in the North West have benefited from good levels of employment and low prices, but one of the main reasons for the success of the buy-to-let market is the serious shortage of housing in the area. People are continuing to be drawn to Northern Powerhouse cities like Manchester and Liverpool for their excellent prospects, but housing developers and local authorities simply cannot keep up with demand. The difficulty of getting onto the housing ladder for many has also added to the demand for rental property, which has been prosperous for landlords.
It is clear to see how the buy-to-let market is growing when you look at the number of applications for that type of mortgage in the area, which has grown by 3.1%. The number of applications in the South East has grown by 3.4%, showing that the gap between the two ends of the country is closing dramatically.
The North West enjoys good transport links, plenty of government investment and growing economies, which all means that the quality of life in this area is a big draw. With the cost of living being lower than that of London there is a trend of internal migration starting to form, which shows the rental market in the area is not likely to diminish any time soon.
For more information on UK property investment, please contact Hopwood House.