The buy-to-let property market is finally perking up again. And, if you’re looking to get the best return on your property investment, it seems that going North could be the answer. New research from HSBC has identified Cleethorpes, Manchester, Hull and Blackpool as growth areas. But what’s driving this changing trend?
According to the Association of Residential Landlords, 39% of landlords are now building their portfolios. The reason for this growth is the government’s “Funding for Lending” scheme – making it easier for landlords to get mortgages. And they’re choosing to invest this money in high-yield areas of the country – the North.
London, on the other hand, is experiencing something of a bust in terms of rental yields. While average yields in the North are currently topping 7%, the capital is struggling to break past the 5% mark.
At Rentify, we recommend making the most of these new opportunities. We would advise any London-based landlord to take advantage of our free service to advertise property in Manchester. You can then start enjoying these attractive yields.
All is not lost in the capital, though, with certain London boroughs such as Southwark, Newham and Enfield still attracting rental yields of up to 6.15%. So it might be worth looking at these areas if you’re worried that you lack the local knowledge to pick the right spots up North.
We would also suggest that you make the most of government lending schemes while you can. The “Funding for Lending” scheme means that you can now get more affordable mortgage products than you could before. So it’s slightly easier to buy more expensive London property.
Whether you’re thinking about chasing the rental yields and moving further North or staying strong in the capital, we’re here for you. Our free property listing service will help you to keep your properties filled, and our comprehensive property management service makes it easy to keep on top of maintenance over short or long distances.