In the past, London would have been the first port of call for international investors interested in entering the UK property market.
However, thanks to a number of significant trends witnessed over recent years, this is no longer necessarily the case. With London suffering from notable disadvantages such as prohibitively high costs and relatively low yields, foreign buyers have much to gain from looking to the north of England.
Attractive affordability and growth prospects
Key cities in the north of England – such as Liverpool and Manchester – currently have some powerful advantages over London where property investment potential is concerned.
Most notably, they offer substantially lower average prices than the capital, twinned with greater scope for future capital growth.
According to the Hometrack UK Cities House Price Index for June 2018, the current typical property price in Liverpool is just £121,900, while the Manchester average is £166,100. Compare these figures to London, where the typical home costs nearly £495,000.
Furthermore, the report showed that both Liverpool and Manchester have seen price growth of more than seven per cent compared to last year, way ahead of London’s figure of 0.7 per cent.
Data from Nationwide Building Society has also underlined how the north of England is outpacing the south in capital growth. Figures for March 2018 showed that, for the fourth quarter in a row, northern regions recorded stronger annual price increases than their southern counterparts.
London was the only area to record a fall in average property values, with prices dropping by one per cent from a year earlier.
Taking these trends into account, it’s clear that foreign buyers looking for a combination of low entry prices and strong potential for growth will be well catered for in the north of England.
Experience Invest is here to help
International investors who are keen to find out more about the opportunities available in the north of England can book a viewing with an Experience Invest consultant dedicated to this particular region.
This is the ideal way to gain an insight into the various developments and asset classes available in northern cities, from UK residential properties to purpose-built accommodation for the expanding student population in locations such as Liverpool.
Furthermore, Experience Invest recently opened a new office on Harbour Road in Hong Kong, providing a convenient starting point for local investors who want to find out more about the UK property market.