It seems that barely a week goes by lately without a new story emerging or a monthly rental index being released that points to northern regions of the UK being the places to invest in buy-to-let property, all while London yields continue to come under pressure.
But enough about those tempting stories that suggest bumper returns for those acquiring properties for use as a private rental investment in such areas as Birmingham and Manchester. What’s actually causing the situation, and how may this guide your buying decisions during 2019?
First of all… London really is that pricey
In stark contrast to recent reports that have indicated fast-escalating house prices in the likes of northern England and the Midlands, growth in the value of homes in the capital remains slow.
Let’s never underestimate, though, just how expensive London already is for many. The capital’s average house price is more than double that of the rest of the country, at about £479,000 compared to the £223,000 national average.
No less worryingly, the typical rent for a two-bedroom private rented house in London is now £1,730, as opposed to the £820 average recorded for England as a whole.
That’s causing many Millennials to flee – indeed, the number of people of this age bracket leaving the capital has recently hit its highest level for more than a decade.
Some are realising they really can have their cake and eat it
In a world of increasingly flexible working arrangements and ever-faster broadband, some people who may have once considered being London-based as essential, are now thinking seriously of relocating to more affordable northern and Midlands cities like Manchester and Birmingham.
They’re realising, in short, that they may just be able to enjoy the best of both worlds – a relatively cheap and hospitable place to call home, but also somewhere that doesn’t force them to completely abandon professional connections they may have already forged in the capital.
Did you know, for example, that Birmingham was the number one destination for people relocating from London in 2018? More than 7,000 people made that particular switch.
Furthermore, given that the high-speed railway HS2 connecting London with the likes of Birmingham, Manchester, Leeds and the East Midlands – and significantly cutting journey times in the process – is set to open between 2026 and 2033, it’s difficult to blame such forward-thinking movers.
What’s more, Yellow Oak will soon be in town…
Whatever your own reasons for contemplating investment in a northern or Midlands location to expand your buy-to-let portfolio in 2019, you may be interested to know that from April 2019, Yellow Oak Inventories LTD will be setting up a presence ‘up north’, too!
Yes, having previously centred our efforts on London with great success, we’ll soon be an equally dependable and reputable company to which to turn for a cost-effective rental inventory in Birmingham or Manchester.
Simply call 020 3713 4933 or email email@example.com today to discuss with us your requirements for a property inventory, check in, check out, mid-term review or snagging report.