The north-west of England has been named as the most lucrative area in the UK for investors to purchase buy-to-let property by online property marketplace LendInvest.
The company said in its latest private rented sector report that Manchester and Liverpool offer better rental yields than anywhere else in the nation.
It’s little surprise that Manchester is seen as the most lucrative investment area for landlords at the moment. The migration of many media companies to the north saw areas of the city such as Salford rejuvenated. With lower purchase prices and high rental demand, yields have been climbing in the city for some time.
In Liverpool, regeneration of the city centre and an increase in student property in recent times will also have had an impact on rental demand from tenants, helping to push up prices and subsequently yields.
The report also shows that outside the north-west of England, the most lucrative places for investing in rental properties at the moment are Cardiff, Coventry and Oldham, which make up the top five. Also in the list were Sunderland, Blackburn and Durham.
This impressive regional performance in terms of rental yields is in stark contrast to house price rises across the nation, with the report also stating that in the last few months, 80 per cent of the postcodes where price rises have been fastest are located in London.
In fact, only one of the top 15 postcodes in terms of price growth also features in the top 15 for rental growth, showing how there is not necessarily ever any correlation between rising prices of homes and increases in rent.
Christian Faes, chief executive officer of LendInvest, said that this performance could spark a new demand for property investment in the north, with a greater number of landlords currently based in the south of England likely to see the performance of the regions as a strong reason to buy further north.