When an investor asks us where they should buy their next property, depending on their priorities it’s often the case that we’ll point them north, which leaves the question, why is the North of England such a good place to invest?
As we see it, the North of England is the worst kept secret in property investment, but investors might not fully understand why this region in particular is such a good place to invest in property.
Whilst certain pockets have spiked investor interest more than others over the past decade or so, as an area overall there still remains to be a considerable opportunity in the North of England for those wishing to purchase a buy-to-let property whether that’s in one of the more established locations of an up and coming hotspot.
Here we consider why the North of England is such a good place to invest.
Why the North of England?
It’s been said in recent months that the ‘smart money’ is on northern cities and that now is very much the right time for investors to focus their attentions on buy-to-let property in the North of England.
The North West in particular has shone over the past decade and continues to lead the UK’s property market with prices up 15% in the year to May 2021.
From Manchester and Liverpool to Sheffield, Leeds and Newcastle – there’s opportunity to be found in every city in the North of England and indeed many of the tertiary towns are worth considering too.
How to know if a location is a good place to invest
No one holds a crystal ball that can predict the future and offer you the exact figures by which property prices will grow in an area or what the tenant demand might be many years down the line. This said, there are a number of factors you can assess that will allow an investor to establish if a location is a good place to invest:
- An area’s current popularity
Certain more established areas will have an obvious pool of tenants to whom a modern investment property will appeal, similarly if there are high numbers of people looking to buy in an areas prices will continually rise. In a more up and coming area, the popularity of an area might be rising, in this scenario, it’s a good idea to look at which businesses have recently or are set to move to the area as these will attract professional tenants, similarly, any new excellence centres or improvements to local universities can be taken into account. Look at population trends and predictions as these will help with your assessment.
- Transport connections
How far away are the nearest transport connections and are there due to be any improvements to infrastructure and transport links in the coming years?
- Regeneration schemes
When considering an area’s future potential for capital appreciation and what the tenant demand might be like further down the line, it’s a good idea to consider the regeneration schemes currently underway and also those in the pipeline.
- Historical price growth
Looking at the historical price growth for an area can be useful to gauge the trajectory of prices generally and also understand if there are strong foundations in place for long-term growth, not just a sudden spike that might be short-lived.
- Predictions from reputable research teams
Whilst there sadly isn’t a crystal ball that can magically show us where prices are going to grow the most and which locations will enjoy the strongest tenant demand, many analysts can provide a good idea of what lies ahead for an area based on previous data and the factors that will impact growth. Studying economic changes, shifts in population and other trends allows these analysts to offer forecasts for the next 5 or so years that can be incredibly useful when deciding where you should invest.
Where to invest in North West England
Whilst the latest research from real estate agent Savills predicts that the region will experience almost 30% price growth over the next 5 years, investors should still carefully consider exactly where to invest in North West England, it’s not simply a case of investing anywhere in the region and hoping for success.
Furthermore, exactly what type of property you buy will have an impact on the success of your investment.
Manchester is the jewel of the North West, a city that has seen continued growth in almost every area from the economy to the population, and of course, property prices have followed on the same upward trajectory. The future is incredibly promising for Manchester as the city continues to undergo further regeneration and flourishes as the ‘Capital of the North’.
To learn more about investing in Manchester, read our dedicated guide available to download for free here.
Liverpool has some of the most exciting credentials in the North West and is partway through significant regeneration and development projects that will have a significant impact. With such stunning historical buildings across the city, investors often have a unique opportunity to invest in off plan residential property that is part of a restoration or buy-to-let properties that enjoy views of the docks or the diverse city skyline with properties of all eras.
A strengthening economy, a young population and a thriving social scene together with a distinct local identity all make Liverpool a worthwhile consideration. With so much growth taking place Liverpool has some of its most exciting years ahead as a place for property investment.
Learn more about Liverpool in our dedicated guide, free to download here.
Where to invest in North East England
The North East of England might have previously been overshadowed by the North West but the region is increasingly capturing the attention of investors. Institutional investors recognise the potential in cities such as Newcastle where science and technology have driven economic growth and the higher education establishments stand out as places that are incredibly important now and will continue to be pioneering centres for many years to come.
Though Sheffield is technically in North East England, it’s in fact very centrally located and is under an hour away from Manchester on the train. On the edge of the Peak District, residents enjoy a wonderful balance of urban life with immediate access to one of Britain’s finest National Parks.
As always, if you would like to discuss your plans for UK property investment in greater detail, please do get in touch.