Manchester and Liverpool top for yields

Money advice website Totally Money has released its latest research on the performance of the buy to let market across the UK, revealing that Manchester and Liverpool have been ruling the UK property market in 2018.

Manchester and Liverpool top for yields

It comes off the back of a BBC story which confirmed that prices were rising quickest in the North West in comparison to the rest of the UK.

The research found that, after studying the performance of 580,000 properties across the UK, that the top performing postcode was L7 in Liverpool, which had rental yields of 11.79% on average across the year. L6, just next door, came in second with an impressive yield of 11.59%.

The findings have also noted that towns and cities with a number of successful universities and high student populations tend to perform highest as demand is higher. Liverpool and Manchester both have two top ranked universities each and also a number of local colleges too.

Manchester and Liverpool in particular have benefitted from receiving some of the brightest students across the UK who have also decided to stay and live in their new adopted homes after graduating, which in turn has meant that innovation, high skilled jobs and new businesses have all been created in abundance.

Manchester and Liverpool have also benefitted recently from a boom in construction not just from high value apartment complexes but also commercial properties and local government investment. Greater Manchester, for example, currently has a number of multi-million pound projects near completion such as the airport relief road in Stockport and the tram network expansion currently being undertaken in Trafford Park.

Manchester’s student population recently hit 100,000 whilst Liverpool has 70,000 students. Both cities are famous for night life and culture, meaning that not only students are expanding the economy but working age people from the south are also making the journey to get a piece of the action in the homes of Oasis, The Smiths and The Beatles.

In Manchester, M14 ranks fifth overall, with an average rental yield of 10.08%. It covers Fallowfield, Moss Side, Ladybarn, Rusholme, and Victoria Park.

The top performing post code in the UK, in Liverpool, also has a low average property price at just £118,225, whilst in Manchester the average is higher at £194,733, but still significantly lower than the UK average of £225,674.

New apartments being built and sold in both cities sit around the average for the area and are currently fetching yields that are leaving investors seeking more. International investments have also risen sharply in recent years with Chinese and Middle Eastern investment spiking.

Seemingly impervious to Brexit nerves, the property scenes in both cities are closely aligned and performing highly, especially in the context of the wider UK market.

Totally Money’s Head of Brand & Content, Joe Gardiner, said: “Year after year, there’s a constant flux of students looking for somewhere to bed down for the night, so it’s no surprise that university cities offer landlords the highest buy-to-let yields. Demand is high, and landlords may use this as an opportunity to drum up competition between tenants and push rental yields higher.”

Are you interested in investing in the UK’s best performing buy to let cities? Check out our latest projects in Manchester here

Liverpool Guide vertical - April 2019

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