11 Aug Leeds And The North Attracts Global Property Investors
Gone are the days when investors from overseas solely looked for opportunities in London and the South East. Nowadays, the smart money is moving north as global investors begin to seek out some of the bargain properties available in this evolving part of Britain.
Cities such as Leeds, Liverpool, Manchester and Sheffield are attracting new investors thanks to their property market’s low entry points and the greater yields available there. Recently, average yields in Manchester were estimated at around 8%, which leaves the capital floundering at 4.5% and the cost of purchasing is significantly cheaper too.
An average two-bed property bought in London would set you back around £300,000, whereas a similar home in the Northwest comes in at a mere £90,000. It doesn’t take a great deal of insight to see why the shift northwards has begun. Manchester has become a property hotspot in the north, but other cities are following.
Urban Regeneration Brings A Bright Future
Another reason for the increased interest in these once forgotten parts of the UK is the change in fortunes that the cities themselves are experiencing. Leeds, for instance, is now regarded as one of the biggest legal centres in Britain and has an extremely strong financial district that is attracting many major companies to the city.
This, in turn, has seen investment in the area skyrocket too, and complexes such as X1 Aire, Leeds look set to transform the area completely. Taking its name from the nearby River Aire, this new group of 147 apartments (including 5 luxurious penthouse properties) is sure to be a hit with the wave of young professionals who are making Leeds their home. Completion for the project looks set for April 2017.
Travel links are also a major factor for investors, and the new HS2 railway line is making the region all the more attractive with those looking to add to the property portfolios. Road links are also important, and the north is already well served by the M1 leading south, as well as the other motorway networks that cross from Liverpool in the west to Hull in the east.
However, the demand from overseas investors means that international travel is almost as important as the local infrastructure. Thankfully, the region is well served in that regard too. Airports such as Leeds Bradford International, Liverpool John Lennon and Manchester Airport all provide great links in and out of the country.
Increasing Demand For Rental Properties Expected To Continue
Demand for rented accommodation is on the rise across the north as a greater number of businesses decide to open up headquarters or major UK offices in the region. As local economies grow, so too will house prices, which is why savvy investors are snapping up these opportunities as quickly as they can.
Further education facilities are also playing a huge role in keeping the rental market active as more and more students choose to head north to study. Universities across the breadth of northern England attract thousands of new students each and every year, many of which travel from overseas and are looking for decent accommodation to rent for the duration of their studies.
Overall, the future for property investment certainly looks bright for those overseas investors who choose to put their money into the North rather than the capital.