Property Market Hotspot - The North West of England
The whole property market has been thrown into disarray after the COVID-19 epidemic in March 2020. During this time, house values stagnated or fell; however, since lockdown restrictions were lifted, the average property price in the UK has soared to an all-time high. According to the ONS, the average property price in the UK increased by 13.2% year on year to reach an all-time high of £266,000 in June 2021. Some areas have outperformed others in terms of significant property growth. After the pandemic limitations were relaxed, the North West was expected to dominate mainstream home price growth for the next few years. According to the Buy Association, the average house price growth in the North West increased by 10.4% between October 2020 and October 2021. The average house price in the North West is now £226,053, substantially lower than in London or other sections of the South. This is an increase of 13% from the North West's general average property price of £199,858 in 2019, as reported by Rightmove. The rise of this region is visible, as projected, and the rental market in this area is also thriving. There are several elements driving this region's economic growth, which we shall now examine.
The modernisation of the North West is a major driver of the region's economic prosperity. Regional activity in technology, media, telecommunications, and cyber security are hot sectors for investors. Job and business prospects in this criteria for this location are propelling the local economy, causing a domino effect that leads to an increase in housing and rental rates due to increased demand for these services. Many investors and businesses have noticed this trend and are focusing on regeneration and development in this area in order to capitalise on investment returns from economic growth. Investors are currently interested in both city living and commuting towns. Manchester and Liverpool, two important cities in the North West, have had considerable housing price growth, yet affordability remains higher than in other regions of the country. Commuter towns such as Bolton and Rochdale are also experiencing rapid property expansion as a result of their convenient access to city centres and ongoing regeneration projects. Many of these cities and towns have fantastic investment opportunities with signals of huge growth and large potential earnings but which ones are worth investing in? When determining a property marker's investment potential, there are numerous aspects to take into account, including housing prices, regional developments, and commuting times. This article will concentrate on our top five North West cities and towns for investment.
One of the fastest growing cities in the United Kingdom in terms of property and rental growth. Manchester is one of the most diversified cities in the North West, making it ideal for a student population. Manchester has various attractions, the most notable of which are its sports arenas. Manchester City, the reigning Premier League champions, and the immensely popular Manchester United are both based in the city. Regeneration projects in the city have improved the quality of facilities such as music venues, clubs, and restaurants, which are popular with students. Manchester was also named the second-best city in the UK for nightlife by Groupia. As a result, the city is an appealing destination for students. The industrial economy has a strong international business hub, with corporations like Amazon and Microsoft situated here. Professional services, finance, and banking have risen at an exponential rate, resulting in an influx of professionals relocating to the area. There are several work prospects in the business sector, which is appealing to job searchers.
Manchester, with an average housing price of £245,428, is quite affordable, especially when compared to London. The city's services make this an appealing option at this price. Property growth is also visible, with the average house price in 2019 standing at £206,246 according to Rightmove. A nearly forty thousand gain in the last three years indicates the possibility for attractive future returns. Manchester's Buy-To-Let (BTL) sector is now seeing a massive boom. The rental yields in this area are absurdly high. According to the Buy Association, the M14 postcode has a 9.6% average yield. This could be because the region is directly south of Manchester's city centre. M13 has a 7.2% yield, M6 has a 6.6% yield, and M9 has a 6.3% yield. Because of these yields, rental income is particularly enticing here, making it the greatest spot in the North West to invest.
This city’s recent modernization and regeneration efforts make it an appealing investment prospect. A new development will begin on the renowned waterfront, creating a new location dedicated to celebrating and creating music. Upgrades to its art museum, Tate Liverpool, will try to boost the tourism economy by strengthening the city's cultural characteristics. Anfield, the infamous football stadium of Liverpool F.C., is also located in the city. Liverpool is a centre of entertainment and culture, and new buildings will increase demand for residents. As a result, it is a hot investment option.
Liverpool's average house price is £193,592. When compared to other places in the UK, this is an incredible entry level pricing. Growth is also visible, with Zoopla reporting a 10.3% increase in average housing prices over the previous year. Liverpool's most advantageous feature is its investor-friendly BTL market. According to Track Capital, the L4 postcode has the greatest average rental yield in the city of 6.9%, with a monthly rent of £602. L2 is the most intriguing region, with an average monthly rent of £749 and a rental yield of 6.4%. The potential for a significant rental income from the L2 postcode alone makes Liverpool a North West frontrunner!
While it does not have as many attractions as other places in the North West. Bolton is regarded as a commuting town with the quickest connection to Manchester. The beautiful countryside areas along with reservoirs and country parks surrounding it offers a scenic enjoyment. The town contributes significantly to the Greater Manchester economy. Almost the last few years, the town has received over £1 billion in public and private investment. This can be ascribed to Manchester's industrial industry, which has allowed Bolton to acquire appeal among full-time workers wishing to invest in a house to live in in order to shorten and streamline their commute.
The average house price in the town of Bolton is £196,601. Nearly £50,000 pounds less than the average Manchester property. The notion of commuting becomes increasingly enticing due to the lower upfront and prospective running costs of a house in this area as opposed to Manchester. Bolton is also experiencing a tremendous growth in house prices, which have risen by an astounding 16.9% in the last year while remaining affordable. Certain new built apartments can be had for as little as £100,000. If this rise continues at the rate it did last year, the potential for investment returns in the following years is enormous.
This town, like Bolton, serves as a commuter link to Manchester. The Dovestone Reservoir and the Oldham Coliseum Theatre, which is the town's principal source of entertainment, are two significant attractions. Oldham was poised to undergo a transformation in 2021 after receiving a £24.4 million grant from the Towns Fund to refurbish its city centre, with the goal of creating flexible workplaces. A direct train line connects Oldham and Manchester in slightly over 30 minutes. Workers wishing to buy a home in Oldham will have no issue finding work in Manchester due to the short commute!
Over the last year, the average property price in Oldham has been £178,521. A highly tempting entry price for a community where home prices are expected to rise 10.7% by 2022. Oldham benefits greatly from the North West's property market boom because of its low entry price and potential for growth, making it an appealing investment possibility. In the BTL market, Oldham's leading region, OL9, has an average rental yield of 6.6% and a monthly rental price of £803. With organic market growth and developments in Manchester poised to drive up prices even more, keep an eye on Oldham as a wise investment.
Rochdale is a business-oriented town that is the quickest commuter town to Manchester, with a direct train connection that takes only 14 minutes. Its good location, strong connectivity, and proximity to a variety of business parks located along the M62 make it an ideal location for active employees. Rochdale is a thriving commercial town with direct access to major markets and a huge, skilled workforce thanks to its renowned Kingsway Business Park. Property is in high demand here due to its employment benefits, therefore investment options are appealing.
As of April 2022, the average house price in Rochdale had risen to £179,333. A 10.8% gain over the previous year continues the North West's history of exponential property growth. While rental yields in Rochdale are not as high as in the other places mentioned in this article, its M24 postcode nonetheless has a BTL rental yield of 5.4%.
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