Rightmove have recently published their latest stats and figures, placing the North West of England as the top place for investors to be looking at to buy in 2017. They predicted that the North West has near double – digit rental returns which are typically found in Merseyside and Lancashire.
Some of the hottest areas that currently exist are Bootle in Merseyside, which currently offers a yield of around 9.3%, Birkenhead which holds a 7.5% yield and Burnley which maintains a yield of 7.2%. The yield of a property tells you have much annual return you are likely to expect to gain from your investment. The total is calculated by expressing a years rental income as a percentage of how much the property costs.
The Mistoria Group, who are specialists in high yielding property investment, revealed their research recently which showed that Liverpool offers a total yield of around 10-13%. This is largely due to the tenant demand in student areas, which is surging in areas of the city and has increased by 14% year on year.
Despite some isolated cities still holding a very high percentage yield, the North West as a region is leading the way in terms of overall yields. Cities such as Sheffield (around 11%) , North Aberdeen (around 10%) , South Manchester (around 8.7%) and North Southampton (around 8.5%) show that certain cities may hold a high percentage yield, but the region as a whole is lacking. This is where the North West leads the way, they have the most yield percentage of any region due to the amount of areas that hold high percentages.
Mish Liyange, the Managing Director of The Mistoria Group has commented saying that, “Investors need to look no further than the North West for great investment opportunities, with yields far exceeding those found in London and the South East. Investors enjoy lower property prices and minimal void periods in many towns and cities in the North West
Liverpool offers investors excellent yields, which are some of the best in the North West. Over the last 12 months, we have seen investor demand grow by 37%, as Liverpool offers high yielding property with excellent occupancy rates. Many post graduate students are staying on in the city to work after their studies and this is driving demand for affordable, high quality rental accommodation.
The city is undergoing a significant redevelopment, with more than £1 billion of projects, including a 34-storey triple tower residential development. There are a total of 10 developments, which are set to transform the city centre.
Investors can acquire a high quality 3 bed HMO which will house for students, from 120K onwards. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth).”
Investors around the United Kingdom now need to look no further than the North West as an area to invest in. The opportunities its presents are vast and the yields far exceed those that are present in and around London and areas in the South. The yields are forever expanding, so investing in this area has never been more welcomed.