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Northern cities stand out from the crowd

By Surrenden Invest | April 9, 2019

Northern cities stand out from the crowd

Property investment companies with a nose for good opportunities have been focusing on the potential of the North England for some time. Cities such as Manchester, Liverpool and Newcastle have much to offer those looking to profit from property. Now, JLL’s latest Northern England Residential Forecasts report has confirmed the wisdom of looking to the North.

“In recent years Northern England’s major cities have established themselves as stand out performers in terms of residential investment and development.”

JLL Northern England Residential Forecasts, February 2019
The key to the success of property investments in these northern cities is the imbalance between the increased demand for centrally located homes and the supply thereof. The JLL report urges investors to ‘find the gap’ when it comes to these markets, which is precisely where property investment companies come in.

“The vast size of cities such as Liverpool, Newcastle and Manchester means that no two investment opportunities are equal. A few hundred metres can make all the difference when it comes to the yield that a property can deliver. That’s why it’s so important for investors to work with a property company with local knowledge when they’re seeking buy to let property UK opportunities.”

Jonathan Stephens, MD, Surrenden Invest
The North is outstripping the national average considerably when it comes to house prices. UK house prices rose by an average of 2.7% in the year to Q3 2018, according to JLL, while in the North West that figure stood at 4.9%. Yorkshire and The Humber saw growth of 4.4%.
Both the North West and Yorkshire and The Humber offer an excellent entry point for investors, thanks to their average home values being below the national average. In the North West, the average home costs £165,000, while in Yorkshire it costs £164,000. The average UK home price is £231,000 (all figures as at Q3 2018).
The Tannery in Liverpool is as shining example of why investment in the right northern hotspots is so attractive. The stylish homes enjoy a superb central location, while investment starts from just £85,000, with net yields of 6%. Premium specifications and a concierge service mean that the homes hold strong appeal to professional tenants, while the provision of luxury furniture packs makes life easier for tenants and investors alike.
JLL’s forecasts for Liverpool project a continuation of the city’s success over the year ahead. The firm believes the city will achieve 2.4% growth in new development prices, against a UK average of 2.2%, and an increase of 3.0% in city centre rents (UK average: 2.4%). All at a time when buy to let landlords are enjoying greater returns.

“By delivering specialist, localised knowledge about the cities in which it offers investments, Surrenden Invest will remain at the forefront of the UK buy to let sector over the years ahead, finding the gaps that deliver the best results for all those interested in investing in UK buy to let opportunities.”

Jonathan Stephens, MD, Surrenden Invest

For regular updates on investing in northern cities such as Liverpool, Manchester and Newcastle, be sure to follow the Surrenden Invest team on social media.

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