Impact of COVID-19 on property demand
Since the start of the COVID-19 pandemic, there has been a shift in housing demand, with high volumes of London residents opting to move out of the capital. Due to the lockdowns and other restrictions, people are looking for properties that offer more space and outdoor land or are situated near scenic areas.
With the increase in people working from home, many professionals also want to have room for an office and they also have more flexibility to work from any location, rather than working in London offices.
Additionally, many home movers are searching for properties in areas that can still provide them with a similar offering to the London lifestyle, such as city centre nightlife and entertainment.
This is why cities like Liverpool, Manchester and Birmingham are becoming the top choice locations for professionals. They are cities famous for their culture and entertainment offerings, from sports events to music venues.
With these parts of the North benefitting from large volumes of investments and regeneration projects, the appeal of lower living costs and a thriving local economy make them ideal locations for people moving out of London.
Lower property prices
Despite areas like the North West seeing such a high increase in house prices, properties still cost significantly less than buying in London, on average. The average house price in the capital at the end of 2021 was just over £675,000, while the average house price in the North West was £233,000.
Due to this, it is easy to see why so many property investors are moving quickly to invest in these thriving areas of the North.
Major corporations moving North
It is not just property investors and residents who are benefitting from the lower property prices in the North, many corporations have moved the offices to northern cities to reduce costs. Reports showed that average office rent prices in London are around £50 per square foot, while the average in Manchester is £30 per square foot.
Amazon recently opened a head office in Manchester, while Media City, also in Manchester has welcomed the BBC. Leeds has become a hub for tech start-up companies, while in Liverpool, the banking, finance and insurance sectors have been the fastest growing areas of the city’s economy. The digital and creative sectors have also been growing in numerous northern cities.
Regeneration and capital investment in the North
There has been a significant amount of investment made in areas of the North, with some large-scale regeneration projects. The example of Peel Holdings investing £5.5 billion on regeneration projects across the L3 postcode shows how confident investors are in the thriving areas of the North. Areas that were once derelict and unsightly are becoming stunning, modern areas of the country with vibrant communities, high spec accommodation and excellent amenities.
Lack of housing in the North
There is already a lack of housing in the North, which means that it is easier to fill rental properties than in other areas where the housing demand is lower.
Due to all of these factors, high rental yields are achievable in the North, which presents the ideal opportunities for property investors. In addition to being able to command high rent payments, the house price growth in places such as the North West should help investors to benefit from capital growth and they could use quickly achieved equity to expand their property portfolio.
Advantage Investment has a number of investment opportunities across all of the areas that offer optimal investment outcomes.
Some of our existing investments include:
We select investments by conducting an in-depth calculation of projected profits, capital growth potential and the level and type of tenant demand, amongst other crucial factors.
If you are looking to take advantage of the great investment opportunities emerging in the North, we can help you to find the right investment for your financial targets. Contact our team of experienced property investment specialists today – request a free consultation.
*Advantage Investment specialises in sourcing property investments for clients