Where is the best place to invest in property in the UK? Unsurprisingly, that’s one of the top questions asked at our property seminars in London, not to mention when we’re out and about, talking to investors across the country.
There’s no single answer to the question, as many locations offer excellent property investment opportunities. However, if you’re looking for high rental yield, there’s really only one area to start looking at the moment – and that’s the north of the UK.
Which Northern Cities?
In particular, cities like Manchester, Liverpool and Sheffield are performing exceptionally well at the moment, offering buy-to-let investors an incredibly strong monthly yield that’s hard to beat. Taking in average rental yields across the city, Manchester came out on top, with over 6% on average (higher in particular areas). Liverpool was in second place.
With regards to Sheffield, although overall it was lower down on the list, its S11 postcode is among the highest performing in the country, offering staggering yields of over 11%. This alone makes it a strong contender.
What Makes Them So Popular with Tenants?
Manchester is now a major business hub in the UK, which has attracted many professionals to the city. Likewise, Liverpool’s considerable regeneration appeals to younger renters, who like its hip, trendy ambiance. As for Sheffield? Once viewed as a run-down industrial city, it’s also experienced regeneration recently, and it has the added bonus of being close to some of the country’s most scenic natural landscapes.
In addition to this, all three cities have major universities, which ensures a steady stream of student tenants. Renting out to students can be very lucrative indeed (especially if you convert the property to an HMO), so it’s worthwhile exploring this as an option.
Part of the reason that the northern cities are offering such high rental income is that buy-to-let property for sale is still relatively cheap – and certainly far more affordable than the South-east. For example, average property prices in Manchester or Sheffield are now around £180,000, and in Liverpool, it’s just £160,000.
However, a word of warning. Investors have already started to notice the property investment opportunities in these areas, and as such, sales have picked up. This is having a knock-on effect on the market and prices are already rising.
Our advice is to get in quickly, or risk missing out.
How to Start Investing in the North
If you’re unfamiliar with Manchester, Liverpool and Sheffield, it’s wise to work with a property investment agent with specialist knowledge of the cities. They’ll provide you with expert advice about which postcodes offer the highest rental yield, what sort of properties are suitable for tenants, and how to secure the house you want, at a reasonable price.
The Buy2Let Shop
If you’re searching for buy-to-let property for sale, get in touch with The Buy2Let Shop. Our team of approachable property investment agents are on hand to support and guide your investments, ensuring you get the best ROI possible.
We also offer assistance with buying a house at auction, and host regular free property investment seminars. For more information, visit The Buy2Let Shop website.