2020 is already shaping up to be a fantastic year for the UK property market, with buy-to-let properties in particular offering an extremely lucrative investment opportunity. One area in the UK that has consistently provided extremely impressive returns that show no sign of slowing down is the north. With a profitable property market, constant regeneration and strong economic hub the north continues to be extremely popular among investors and it’s clear to see why.
Professional services firm PricewaterhouseCoopers (PwS) recently carried out an index known as the Good Growth for Cities Index, which measured the performance of 42 of the UK’s largest cities in various areas. The cities were judged against the following 10 indicators; jobs, income, skills, health, housing, transport, work-life balance, business start-ups, environment and income, with the index aiming to show that there is more to economic well-being than just measuring gross domestic product (GDP). Cities in the North of England showed the greatest improvement and were among the top performers throughout the survey, with places like Manchester and Liverpool making it into the top 10 improved cities. The vast improvement in Northern cities has been extremely beneficial to the ever-growing economy leading into the new year, and 2020 is set to bring even more joy for investors in buy-to-let in particular.
Cities like Manchester, Liverpool, Sheffield and more boast considerably higher rental yields and lower prices than places such as London and areas throughout the South East. The Northern Powerhouse initiative – launched in 2014 – has provided massive economic growth for the area, creating tens of thousands of jobs and seeing both money and power slowly moving away from the capital up north. The north’s economy has increased massively in just five years thanks to the the initiative, with massive investments into regeneration, housing, job creation and transport all culminating in a £10bn increase in the economy.
The Greater Manchester area – the economic hub of the north – is one area in particular that is expected to continue its economic rise. A number of areas including Manchester and Bolton are all undergoing huge regeneration schemes in the hopes of creating thousands of new jobs and homes in the cities. Property prices in Manchester have also seen a massive 22.09% increase since the beginning of the Northern Powerhouse initiative – with rental yields remaining consistently strong throughout. Liverpool is another area that has enjoyed a large amount of regeneration as of late, with their waterfront being transformed into one of the most beautiful in the country. Even more investment is expected, including a brand-new stadium for Everton Football Club, all in the hope of increasing the number of jobs and homes in the city. Leeds is yet another city that has experienced a considerable amount of regeneration, and it’s set for even more investment in the near future. The success of the recent South Bank regeneration has seen exponential growth in the number of business and young professionals heading towards the area, with Channel 4 even moving their head offices to ‘The Majestic’ in Leeds city centre, and the hope is to continue this upward trend, only increasing the northern economy on the whole.
2020 is already expected to be an exciting year in the property market, with last year’s General Election and the upcoming Brexit deadline set to offer an end to the political and economic uncertainty that has plagued the UK for the last few years. It’s a new decade and a new start, and the north is possibly the most exciting place for potential investors to look. With lower prices than the capital and lucrative yields, 2020 is the perfect time to invest in the north. Are you interested in investing? Browse through our wide range of tenanted, income-generating buy-to-let properties here.
