New figures from the Your Move Rental Tracker have demonstrated that rents across the UK have remained steady over the last year, settling at an average of £860 per calendar month (pcm). However, this does mask the fact that there are variations between regions.
The strongest performers were the South West, West Midlands and Yorkshire and the Humber which saw increases of 3.6%, 3.3% and 2.3% over the past 12 months respectively. On the other end of the scale, the East of England saw the biggest drop, with the average rent dropping by 2%. London also saw a decrease of 1.3% but remains the most expensive area to rent, with the average rent standing at £1260 pcm.
In terms of yields, the North of England was a clear front runner, which is why many buy to let investors are now looking North for their next rental investment. In the North East, the average yield was 5% and the average for the North West was 4.8%, a stark contrast from the average of 3.2% in the capital.
One major reason for the highly attractive yields could be down to the fact that the North West has seen a huge regeneration in recent years. Manchester has seen a major influx of highly regarded businesses calling the Northern city home, the most notable example is the MediaCityUK development, which plays host to media giants like the BBC and ITV and has helped to completely overhaul the Salford Quays area. Liverpool is also home to several big-name employers, including retailers like Matalan and Shop Direct.
The North West is also a hotspot for young professionals from all over the world. It is home to several universities which provide a steady pipeline of talented graduates who are choosing to stay in the region. On top of this, graduates from elsewhere are choosing to relocate to the North because it provides a better quality of life than the capital, while still providing good career prospects.
With the above in mind, it’s easy to see why so many buy to let investors are heading North for their next investment. The demand isn’t slowing down either; according to a recent crane survey, there were around 14,480 residential units being built in Manchester alone and with the bigger cities filling up quickly, many are also looking at smaller cities like Preston and Chester for investment opportunities.
In response to the findings, the national lettings director at Your Move, Martyn Alderton, said: “We continue to see landlords in the south of England looking further afield for their next rental opportunity, as northern properties deliver strong yields. The growth of the urban rental market has created yield hotspots for private landlords in the Northern cities like Manchester and Liverpool.”
When it comes to property investment, the North West is a key region to explore. The demand is clearly strong in the major cities, but smaller cities also have a lot of potential as attractive investment opportunities.
To find out more about our developments in the North West, make sure you enquire today!