INVESTING INTO PROPERTY: IS THE NORTH OF ENGLAND WORTH IT?
INVESTING INTO PROPERTY: IS THE NORTH OF ENGLAND WORTH IT?
Tom Condon
September 26th, 2023
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Investing into property in the North of England presents an exciting avenue, especially if you’re considering residential property as a component of your investment strategy. The property sector in the UK, with a specific focus on the Northern regions, provides a diverse array of opportunities suitable for investors at various stages of experience and financial capacity.
Whether you want to purchase a property directly, explore the commercial property sector or even delve into alternative ways to invest, the North has much to offer. As property sourcers we can guide you in finding the right property that aligns with your investment goals away from the estate agent market.
Whether you aim to manage an entire property portfolio or simply invest a single property, the North of England presents options for investors with varying budgets and objectives. So, if you have the money to invest and are looking for ways to make money through property, considering the North might be a wise move in your property investing journey.
Investing in the North of England can be a strategic decision and the region offers several opportunities for businesses and investors. The combination of affordability and attractive rental returns positions the North of England as a prime choice for those contemplating buy-to-let property investments.
The region boasts some of the most breath-taking landscapes in England, making it a destination that tourists flock to in the summer months.
But, the North of England is more than just a beautiful region. With a rich history encompassing the Romans, Vikings, Normans and then a later boom within the industrial revolution, it offers a diverse property market reflective of its varied heritage.
What factors make a location a good place for investing into property?
When investing into property, you will need consider the areas local economy as this will ensure whether there is demand or not, and if your property will undergo any potential capital appreciation,
Here are some factors that make a location a good place for investing into property:
- A thriving job market.
- Healthy population growth with a large young professional workforce.
- Increasing property value with competitive rental yields.
- Short commutes to shops and supermarkets.
- Mix of affordable transport links (buses, trains, trams, and city-bikes).
- Accessible hospitals, plenty of GP’s and dentists, both public and private.
- A combination of both private and state schools, nurseries, colleges and universities.
- Reasonable cost of living.
- Diverse communities, with varied religious hubs (Churches, Mosques, Synagogues, Mandirs and Gurdwaras).
- Introduction of government initiatives to boost a region’s economy.
A thriving job market, population growth and housing market are severely influential on the rental income and potential property value of an area. The location, neighbourhood and access to amenities is also a crucial factor for attracting tenants.
What is The Northern Powerhouse initiative?
The North of England has experienced significant economic regeneration in recent years, especially with the announcement of the Governments ‘Northern Powerhouse’ white paper.
The idea behind the Northern Powerhouse is to rebalance the country’s economy by investing in and promoting the economic potential of the Northern regions, which historically have faced economic disparities compared to the South of England, particularly London and the South East.
The government has committed to investing in infrastructure projects, transportation, research and development to stimulate economic growth. The strategy involves the devolution of significant powers and budgets to directly elected mayors, ensuring that decisions impacting the North are made by the North itself.
Enhancing transportation connectivity within the Northern regions and bridging connections between the North and the rest of the UK is paramount. This vision is manifested in projects like High-Speed 2 (HS2) railway and the ongoing improvements to road networks.
In concert with these infrastructure developments, the Northern Powerhouse initiatives are dedicated to nurturing business expansion and innovation, particularly in pivotal sectors such as technology, advanced manufacturing and healthcare.
Simultaneously, there is a strong emphasis on bolstering educational standards and fostering skill development through initiatives like National Colleges and vocational training programs. These combined efforts are poised to not only empower the North with a competitive and skilled workforce by also invigorating economic growth and prosperity in the region.
Is the North of England getting HS2?
The High-Speed 2 (HS2) railway project is a revolutionary development in the UK’s transportation infrastructure. Set to connect the country’s two largest cities, Birmingham and London, between 2029 and 2033, the ambitious network has significant implications for property investors in the North.
The HS2 route, spanning from the North West of England to the South East, will include vital stops at key metropolitan centres like Manchester, Birmingham and London, serving as a pivotal artery for connectivity across the UK. Beyond these major cities, the railway will extend its reach, facilitating travel to Scotland and other regions.
One of the most striking features of HS2 is its cutting edge, British built, bullet-style trans, designed to travel at speeds of up to 225 mph on both high-speed tracks and existing railway lines. This advancement in transportation technology will revolutionise travel and significantly reduce journey times.
For instance, the journey from Manchester to Birmingham, which currently takes 1 hour 45 minutes, will be trimmed to just 41 minutes upon HS2’s completion.
Investors should take note of the impact of HS2 on the Northern property market. Improved connectivity not only enhances the appeal of cities along the HS2 route but also opens up opportunities for property investment UK in areas expected to benefit from increased commuter demand.
As HS2 paves the way for faster, more efficient travel between major economic hubs, property investors can anticipate rising property values and heightened demand for rental properties, making the North a promising and lucrative destination for those looking to expand their property portfolios.
Where are the best property investments in the North of England?
If you’re wondering where the best property investments are in the North of England, you’re in the right place! There are many great places across the North East, North West and Yorkshire for buy to let properties, commercial property and student accommodation.
In terms of the best rental yields in the North of England, Zoopla’s data highlights the North East as a standout performer in terms of rental yields. The statistics reveal that the North East region boasts the highest average rental yield, with Hartlepool leading the charge with an impressive 7.64%, closely followed by Middlesbrough and Sunderland, both delivering robust rental yields of 7.61%.
These figures are particularly noteworthy when compared against London’s highest rental yield area, Barking and Dagenham, which records a considerably lower yield of 5.12%. This stark contrast encourages a compelling rationale why you should consider investing into property in the North of England.
Investors searching for high returns are finding the North East to be an attractive prospect. With its consistently high rental yields, this region presents an appealing alternative to the traditionally competitive and often expensive London market. The financial benefits of investing ‘up North’ are increasingly evident, offering the potential for greater returns on investment and a more favourable risk-reward profile.
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The property market in the North East of England mirrors the region’s rich and diverse history, offering a wide range of options for potential buyers and investors. While the market displays a level of economic disparity, it generally leads toward the more affordable end when compared to the average UK economy.
North East of England demographic drill down
*Demographics using 2021 data from Varbes.com
Population: 2,647,000
Population growth: -1.27% since 2020
Age structure:
- 0-15: 16.55%
- 16-64: 62.88%
- 65+: 20.57%
Average salary: £34,116
Average UK house price (June 2023 ONS): £161,034
What does this mean for investing into property?
The average house price in the North East of England is significantly lower than the UK average at £288,000. This level of affordability would mean investing into property is attractive to first time buyers, beginner level investors and seasoned investors looking for lower-cost properties with the potential for capital appreciation.
The North East of England is the cheapest region in the North of England for buying an investment property.
While the North East of England has experienced a slight population decline (-1.27% since 2020), the region’s overall population remains substantial at 2,647,000. This indicated that there is still a considerable demand for housing in the area, particularly among the existing population.
The age structure of the population, with a relatively high percentage of individuals aged 65 and above (20.57%) suggests potential demand for retirement accommodations. Additionally, the average salary in the North East of England is £34,116 which is below the national average, which may mean that homeownership is more challenging for some residents and the 16.64 age group (62.88%) represents the working-age population, which can boost demand for rental properties.
The demographic composition of the population in the North East of England markets by a relatively substantial proportion of individuals aged 65 and older (20.57%), implies a potential need for retirement homes. This ageing demographic may drive demand for housing options tailored to senior living.
Furthermore, the North East’s average salary of £34,116 which falls below the national average, indicates that homeownership could present financial challenges for a portion of residents.
This, in turn, heightens the attractiveness of rental properties as a more attainable housing solution, especially among the sizable working-age population in the 16-64 age bracket (comprising 62.88% of the total population). The presence of this working-age demographic further underscores the potential for a robust demand for rental properties tailored to the needs of this cohort.
WHERE TO INVEST IN THE NORTH EAST OF ENGLAND?
The North East of England comprises varied property prices that can cater to diverse budgets and preferences that allows investors and buyers to find properties that can suit their financial means, from charming countryside cottages to urban developments.
Among the notable property hot spots in the North East, Newcastle upon Tyne, Middlesbrough and Sunderland stand out as the three most populous areas.
Notably, Newcastle and Sunderland hold city status, while Middlesbrough does not possess this designation. Each of these cities brings its unique flavour to the North East’s property market.
Investing in Newcastle Upon Tyne
Newcastle Upon Tyne, or Newcastle, is a vibrant cultural hub and a major economic centre in the North East. The city’s property market boasts a blend of contemporary apartments, historic townhouses, and modern developments along the picturesque River Tyne.
Based on the 2021 ONS census, Newcastle’s property investment market consists of:
- Owned outright: 25%
- Mortgage or shared ownership: 24.7%
- Social rented: 27.3%
- Private rented or rent-free: 23%
How to leverage Newcastle’s housing market?
Leveraging Newcastle’s substantial student population of 42,000 and the presence of affordable housing can be an attractive opportunity for investing into property. Newcastle’s large student population creates a strong demand for purpose built student accommodation (PBSA) or rental properties catering to students.
Investors can explore opportunities to purchase or develop properties specifically designed for student living. This includes furnished apartments, shared houses, or studio units located in close proximity to universities and colleges.
Investing in property in Middlesbrough
Middlesbrough, although not officially a city, plays a crucial role in the region’s economy. Its property market encompasses a range of housing solutions, from budget-friendly starter homes to potential investment properties in an evolving urban landscape.
Based on the 2021 ONS census, Middlesbrough’s housing market consists of:
- Owned outright: 28.6%
- Mortgage or shared ownership: 27%
- Social rented: 23.2%
- Private rented or rent-free: 21.2%
How to leverage Middlesbrough’s housing market?
Investing into property in Middlesbrough, could come in many forms. The fact that 23.2% of housing in Middlesbrough is designated to social rent, suggests a significant portion of the population relies on rented housing.
Investors can tap into this demand by offering well-maintained, privately rented properties which appeal to individuals and families who may not be eligible for social housing.
Sunderland property investments
Sunderland, another city within the region, offers a mix of residential options including waterfront properties along the River Wear, suburban family homes and investment opportunities in its growing cityscape.
Based on the 2021 ONS census, Sunderland’s housing market consists of:
- Owned outright: 31.4%
- Mortgage or shared ownership: 27.1%
- Social rented: 26.6%
- Private rented or rent-free: 14.9%
How to leverage Sunderlands housing market?
Given Sunderland’s strong manufacturing presence, there is likely a demand for affordable housing among the workforce in this sector. Investors can consider acquiring or developing properties that cater to the housing needs of manufacturing employees such as affordable rental apartments or shared ownership homes located conveniently near industrial areas.
The North West of England presents a dynamic and multifaceted environment for property investment and business growth. Its diverse economy, strategic location and ongoing developments make it an appealing choice for those seeking opportunities outside of London and the South East.
North West of England demographic drill down
*Demographics using 2021 data from Varbes.com
Population: 7,422,295
Population growth: 0.74% since 2020
Age structure:
- 0-15: 17.55%
- 16-64: 63.66%
- 65+: 18.79%
Average salary: £35,807
Average UK house price (June 2023 ONS): £215,631
What does this mean for property investments in the North West?
While the population growth rate of 0.74% since 2020 may not be extremely high, it still signifies a steady increase in the population. This pimples a consistent and potentially growing demand for housing, which can be advantageous for property investors looking for long-term opportunities.
The region’s age structure with a substantial percentage of individuals aged 16-64 (63.66%), indicates a significant working-age population.
This demographic typically drives demand for rental properties and can contribute to a stable rental market.
The average house price in the North West (£215,631 as of June 2023) is notably lower than the UK average. Property investors can leverage this affordability to attract both home buyers and renters, making it an appealing market for those seeking budget-friendly options.
The average salary in the North West of England (£35,807) is competitive and aligns with the national average. This suggests that residents have the financial capacity to consider homeownership or may be looking for quality rental properties.
The North West of England offers a variety of cities and towns that present attractive opportunities for property investment UK. The North West of England is currently the UK’s fastest-growing region, and property prices are expected to experience the most substantial increase compared to any other UK region over the next 5 years.
Due to the growth of the North West, there are plenty of opportunities for investing into property, with some of the best being Manchester, Liverpool and Blackpool.
Investing in Manchester
As a major economic and cultural hub, Manchester offers a diverse range of property investment opportunities The city has experienced significant regeneration and development, particularly in areas like the city centre, Salford Quays and Ancoats. These areas are known for high rental demand and potential for capital appreciation.
Based on the 2021 ONS census, Manchester’s housing market consists of:
- Owned outright or with a mortgage: 37.2%%
- Shared ownership: 0.8%
- Social rented: 29.5%
- Private rented or rent-free: 32.5%
How to leverage investments in Manchester?
Property investors in Manchester should consider leveraging the fact that 32.5% of Manchester’s housing market is in the private rented sector and indicates a strong demand for rental properties. You could target properties that cater to students close to the Universities or libraries.
Given the ongoing regeneration and development in certain areas like Salford, Tameside and Wigan, investors should keep an eye on neighbourhoods with the potential for significant capital appreciation.
Property investments in Liverpool
Liverpool has seen substantial investment and revitalisation in recent years, making it an appealing choice for property investors. The city centre, especially the Baltic Triangle and Ropewalks is known for its growth potential. Suburbs like Allerton and Mossley Hill are popular for families, while areas near the universities like Edge Hill and Mount Pleasant are ideal for student accommodation investments.
Based on the 2021 ONS census, Liverpool’s housing market consists of:
- Owned outright or with a mortgage: 46.8%
- Shared ownership: 0.7%
- Social rented: 26.4%
- Private rented or rent-free: 26.2%
How to leverage investments in Liverpool?
Liverpool offers a diverse range of investment options, including the city centre, Birkenhead, and the wider Wirral. Investors should consider targeting the student market and consider investing in properties to accommodate these. This may include furnished flats, shared housing or purpose built student accommodation.
Investing in property in Blackpool
Known for its seaside attractions, Blackpool attracts tourists year round. Investors interested in the tourism, hospitality and short-term rental market may be able to find affordable properties here.
Based on the 2021 ONS census, Blackpool’s housing market consists of:
- Owned outright or with a mortgage: 57.5%
- Shared ownership: 0.3%
- Social rented: 10.3%
- Private rented or rent-free: 31.9%
How do you leverage property investments in Blackpool?
Blackpool’s reputation as a tourist destination presents an opportunity for property investors in the tourism industry. You can leverage the demand for short-term rentals by investing in properties that cater to tourists. This could include vacation rentals, bed and breakfasts, or boutique hotels. Location is key so aim for properties in or near popular tourist areas.
You can consider the demand for short-term rentals, especially during peak tourist seasons. Invest in properties that are well-maintained, attractively furnished, and marketed effectively to capitalise on this market. Platforms like Airbn and Booking.com can be valuable tools for reaching potential guests.
Yorkshire and the Humber is often considered as an attractive place to invest in property. The region offers a diverse range of investment opportunities, from bustling urban hot spots like Leeds and Sheffield to picturesque rural areas.
Yorkshire has shown its resilience within the property market, with historically stable property prices and steady rental demand. The region benefits from a robust local economy, excellent transport links and a range of education institutions making it an attractive location for many renters.
Additionally the relatively lower property prices compared to the South of England make it more accessible for investors, providing the potential for favourable yields and capital appreciation.
Yorkshire demographic drill down
*Demographics using 2021 data from Varbes.com
Population: 5,481,431
Population growth: -0.81% since 2020
Age structure:
- 0-15: 17.42%
- 16-64: 63.47%
- 65+: 19.11%
Average salary: £35,334
Average UK house price (June 2023 ONS): £208,867
What does this mean for property investments in Yorkshire?
Despite a slight population decline, Yorkshire’s population still remains substantial. The demographic stability suggests consistent demand for housing especially considering it’s ageing population.
With 19.11% of the population aged 65 and above, there is also potential for retirement properties that cater to the elderly. These could be in the form of self-serviced retirement flats, assisted living facilities or accessible housing.
The average salary in Yorkshire is £35,334 which aligns with the national average and suggests that residents have the financial capacity to consider homeownership or may be looking for quality rental properties.
This, paired with Yorkshire’s average house price being £80,000 less than the national average means investors could buy properties at a lower cost and renovate them to a high standard in order to rent out as a buy-to-let property to young professionals and families.
Given the significant working-age population and relatively affordable property prices, buy-to-let investments are an attractive option.
WHERE TO INVEST IN YORKSHIRE?
When looking to invest in property in Yorkshire, UK, an investor should consider several factors to make the best choice for their investment portfolio, Yorkshire offers a diverse property market, making it an attractive place to buy property.
Its essential to research the local property market and property prices in various areas to identify the best yield potential. Property development projects in up-and-coming areas like Bradford, Sheffield and Wakefield can offer a good investment opportunity, potentially increasing property prices and rental income over time.
Should you invest in Bradford?
Bradford offers a mix of affordability and investment potential. Some areas like the city centre and Great Horton can be particularly attractive for student accommodation based investors. Whereas areas like Barkerend West are attractive to investors looking to develop run down properties.
Based on the 2021 ONS census, Bradford’s housing market consists of:
- Owned outright or with a mortgage: 61.7%
- Shared ownership: 0.5%
- Social rented: 14.6%
- Private rented or rent-free: 23.1%
How do you leverage property investments in Bradford?
With almost a quarter of Bradfords housing market as privately rented, it suggests Bradfords rental market is stable. There is a high demand for buy-to-let properties, and even higher demand for recently refurbished properties to be bought outright.
Bradford played a heavy hand in the industrial revolution, and so has areas like Rayleigh Street and Shipley which historically housed the booming factories. Although a lot of the land has gone through some regeneration, there are still areas which are up and coming.
Investing in Sheffield
Sheffield offers a more affordable property market compared to some other Yorkshire cities. It has a growing student population, making it a viable option for student housing investments. It’s also on the HS2 planned network, meaning in a few years the property prices are likely to increase.
Based on the 2021 ONS census, Sheffield’s housing market consists of:
- Owned outright or with a mortgage: 58.3%
- Shared ownership: 0.3%
- Social rented: 22.6%
- Private rented or rent-free: 18.8%
How do you leverage property investments in Sheffield?
The relatively high percentage of social rented properties (22.6%) suggests a potential market for landlords interested in participating in social housing schemes or housing associations.
The percentage of properties owned outright or with a mortgage (58.3%) implies a strong homeownership culture in Sheffield, Investors may consider opportunities related to property flips, renovations, or home improvement services.
Investing into property in Wakefield
Wakefield is relatively close to Leeds and has seen a lot of growth in recent years, making it an option for more budget conscious investors, beginner investors or investors looking to make a quick flip.
Based on the 2021 ONS census, Wakefield housing market consists of:
- Owned outright or with a mortgage: 62.6%
- Shared ownership: 0.8%
- Social rented: 21.7%
- Private rented or rent-free: 15%
How do you leverage property investments in Wakefield?
Investing in property in Wakefield is attractive to investors on many fronts as the city boasts a strong homeownership culture, with a majority of properties owned outright or with a mortgage, indicating stability and potential for property value appreciation.
Additionally, the presence of social rented properties and a significant private rented sector suggests a steady demand for rental properties, making it an appealing destination for buy-to-let investors. Wakefield’s strategic location in West Yorkshire offers proximity to major cities like Leeds and Sheffield, making it part of the wider economic growth in the region.
If you’re considering investing in property in the North of England, you will benefit from lower than London purchase prices, strong rental markets and growing demand for more rental properties.
Investing in UK property is a common way to invest, and there are various factors to consider when deciding whether to invest into property up North. The type of investment you choose, such as residential property, commercial properties, or buy-to-let, plays a significant role in the decision.
Properties up North often come with a more affordable price tag compared to the South, making it an attractive option for those looking to get on the property ladder or expand their portfolio.
Investing in property doesn’t necessarily mean buying a property and renting it out to tenants, there is also the opportunity of buying a property and holding property until you gain capital appreciation over time.
With the introduction of the Northern Powerhouse initiative and the HS2 railway, the North of England is only going to continue growing in economic importance. Whatever type of property you invest in, the North will likely show you amazing returns be it as a short return on investment or a long term investment.
The UK property market has long shown resilience, and certain Northern regions have experienced notable growth in recent years. So, investing in a property up North can indeed be a viable way to invest.
Learn more about how to invest in the North below…
Start your property portfolio today!
Investing into property in the North of England presents an exciting avenue, especially if you’re considering residential property as a component of your investment strategy. The property sector in the UK, with a specific focus on the Northern regions, provides a diverse array of opportunities suitable for investors at various stages of experience and financial capacity.
Whether you want to purchase a property directly, explore the commercial property sector or even delve into alternative ways to invest, the North has much to offer. As property sourcers we can guide you in finding the right property that aligns with your investment goals away from the estate agent market.
Whether you aim to manage an entire property portfolio or simply invest a single property, the North of England presents options for investors with varying budgets and objectives. So, if you have the money to invest and are looking for ways to make money through property, considering the North might be a wise move in your property investing journey.
Investing in the North of England can be a strategic decision and the region offers several opportunities for businesses and investors. The combination of affordability and attractive rental returns positions the North of England as a prime choice for those contemplating buy-to-let property investments.
The region boasts some of the most breath-taking landscapes in England, making it a destination that tourists flock to in the summer months.
But, the North of England is more than just a beautiful region. With a rich history encompassing the Romans, Vikings, Normans and then a later boom within the industrial revolution, it offers a diverse property market reflective of its varied heritage.
What factors make a location a good place for investing into property?
When investing into property, you will need consider the areas local economy as this will ensure whether there is demand or not, and if your property will undergo any potential capital appreciation,
Here are some factors that make a location a good place for investing into property:
- A thriving job market.
- Healthy population growth with a large young professional workforce.
- Increasing property value with competitive rental yields.
- Short commutes to shops and supermarkets.
- Mix of affordable transport links (buses, trains, trams, and city-bikes).
- Accessible hospitals, plenty of GP’s and dentists, both public and private.
- A combination of both private and state schools, nurseries, colleges and universities.
- Reasonable cost of living.
- Diverse communities, with varied religious hubs (Churches, Mosques, Synagogues, Mandirs and Gurdwaras).
- Introduction of government initiatives to boost a region’s economy.
A thriving job market, population growth and housing market are severely influential on the rental income and potential property value of an area. The location, neighbourhood and access to amenities is also a crucial factor for attracting tenants.
What is The Northern Powerhouse initiative?
The North of England has experienced significant economic regeneration in recent years, especially with the announcement of the Governments ‘Northern Powerhouse’ white paper.
The idea behind the Northern Powerhouse is to rebalance the country’s economy by investing in and promoting the economic potential of the Northern regions, which historically have faced economic disparities compared to the South of England, particularly London and the South East.
The government has committed to investing in infrastructure projects, transportation, research and development to stimulate economic growth. The strategy involves the devolution of significant powers and budgets to directly elected mayors, ensuring that decisions impacting the North are made by the North itself.
Enhancing transportation connectivity within the Northern regions and bridging connections between the North and the rest of the UK is paramount. This vision is manifested in projects like High-Speed 2 (HS2) railway and the ongoing improvements to road networks.
In concert with these infrastructure developments, the Northern Powerhouse initiatives are dedicated to nurturing business expansion and innovation, particularly in pivotal sectors such as technology, advanced manufacturing and healthcare.
Simultaneously, there is a strong emphasis on bolstering educational standards and fostering skill development through initiatives like National Colleges and vocational training programs. These combined efforts are poised to not only empower the North with a competitive and skilled workforce by also invigorating economic growth and prosperity in the region.
Is the North of England getting HS2?
The High-Speed 2 (HS2) railway project is a revolutionary development in the UK’s transportation infrastructure. Set to connect the country’s two largest cities, Birmingham and London, between 2029 and 2033, the ambitious network has significant implications for property investors in the North.
The HS2 route, spanning from the North West of England to the South East, will include vital stops at key metropolitan centres like Manchester, Birmingham and London, serving as a pivotal artery for connectivity across the UK. Beyond these major cities, the railway will extend its reach, facilitating travel to Scotland and other regions.
One of the most striking features of HS2 is its cutting edge, British built, bullet-style trans, designed to travel at speeds of up to 225 mph on both high-speed tracks and existing railway lines. This advancement in transportation technology will revolutionise travel and significantly reduce journey times.
For instance, the journey from Manchester to Birmingham, which currently takes 1 hour 45 minutes, will be trimmed to just 41 minutes upon HS2’s completion.
Investors should take note of the impact of HS2 on the Northern property market. Improved connectivity not only enhances the appeal of cities along the HS2 route but also opens up opportunities for property investment UK in areas expected to benefit from increased commuter demand.
As HS2 paves the way for faster, more efficient travel between major economic hubs, property investors can anticipate rising property values and heightened demand for rental properties, making the North a promising and lucrative destination for those looking to expand their property portfolios.
Where are the best property investments in the North of England?
If you’re wondering where the best property investments are in the North of England, you’re in the right place! There are many great places across the North East, North West and Yorkshire for buy to let properties, commercial property and student accommodation.
In terms of the best rental yields in the North of England, Zoopla’s data highlights the North East as a standout performer in terms of rental yields. The statistics reveal that the North East region boasts the highest average rental yield, with Hartlepool leading the charge with an impressive 7.64%, closely followed by Middlesbrough and Sunderland, both delivering robust rental yields of 7.61%.
These figures are particularly noteworthy when compared against London’s highest rental yield area, Barking and Dagenham, which records a considerably lower yield of 5.12%. This stark contrast encourages a compelling rationale why you should consider investing into property in the North of England.
Investors searching for high returns are finding the North East to be an attractive prospect. With its consistently high rental yields, this region presents an appealing alternative to the traditionally competitive and often expensive London market. The financial benefits of investing ‘up North’ are increasingly evident, offering the potential for greater returns on investment and a more favourable risk-reward profile.
The property market in the North East of England mirrors the region’s rich and diverse history, offering a wide range of options for potential buyers and investors. While the market displays a level of economic disparity, it generally leads toward the more affordable end when compared to the average UK economy.
North East of England demographic drill down
*Demographics using 2021 data from Varbes.com
Population: 2,647,000
Population growth: -1.27% since 2020
Age structure:
- 0-15: 16.55%
- 16-64: 62.88%
- 65+: 20.57%
Average salary: £34,116
Average UK house price (June 2023 ONS): £161,034
What does this mean for investing into property?
The average house price in the North East of England is significantly lower than the UK average at £288,000. This level of affordability would mean investing into property is attractive to first time buyers, beginner level investors and seasoned investors looking for lower-cost properties with the potential for capital appreciation.
The North East of England is the cheapest region in the North of England for buying an investment property.
While the North East of England has experienced a slight population decline (-1.27% since 2020), the region’s overall population remains substantial at 2,647,000. This indicated that there is still a considerable demand for housing in the area, particularly among the existing population.
The age structure of the population, with a relatively high percentage of individuals aged 65 and above (20.57%) suggests potential demand for retirement accommodations. Additionally, the average salary in the North East of England is £34,116 which is below the national average, which may mean that homeownership is more challenging for some residents and the 16.64 age group (62.88%) represents the working-age population, which can boost demand for rental properties.
The demographic composition of the population in the North East of England markets by a relatively substantial proportion of individuals aged 65 and older (20.57%), implies a potential need for retirement homes. This ageing demographic may drive demand for housing options tailored to senior living.
Furthermore, the North East’s average salary of £34,116 which falls below the national average, indicates that homeownership could present financial challenges for a portion of residents.
This, in turn, heightens the attractiveness of rental properties as a more attainable housing solution, especially among the sizable working-age population in the 16-64 age bracket (comprising 62.88% of the total population). The presence of this working-age demographic further underscores the potential for a robust demand for rental properties tailored to the needs of this cohort.
WHERE TO INVEST IN THE NORTH EAST OF ENGLAND?
The North East of England comprises varied property prices that can cater to diverse budgets and preferences that allows investors and buyers to find properties that can suit their financial means, from charming countryside cottages to urban developments.
Among the notable property hot spots in the North East, Newcastle upon Tyne, Middlesbrough and Sunderland stand out as the three most populous areas.
Notably, Newcastle and Sunderland hold city status, while Middlesbrough does not possess this designation. Each of these cities brings its unique flavour to the North East’s property market.
Investing in Newcastle Upon Tyne
Newcastle Upon Tyne, or Newcastle, is a vibrant cultural hub and a major economic centre in the North East. The city’s property market boasts a blend of contemporary apartments, historic townhouses, and modern developments along the picturesque River Tyne.
Based on the 2021 ONS census, Newcastle’s property investment market consists of:
- Owned outright: 25%
- Mortgage or shared ownership: 24.7%
- Social rented: 27.3%
- Private rented or rent-free: 23%
How to leverage Newcastle’s housing market?
Leveraging Newcastle’s substantial student population of 42,000 and the presence of affordable housing can be an attractive opportunity for investing into property. Newcastle’s large student population creates a strong demand for purpose built student accommodation (PBSA) or rental properties catering to students.
Investors can explore opportunities to purchase or develop properties specifically designed for student living. This includes furnished apartments, shared houses, or studio units located in close proximity to universities and colleges.
Investing in property in Middlesbrough
Middlesbrough, although not officially a city, plays a crucial role in the region’s economy. Its property market encompasses a range of housing solutions, from budget-friendly starter homes to potential investment properties in an evolving urban landscape.
Based on the 2021 ONS census, Middlesbrough’s housing market consists of:
- Owned outright: 28.6%
- Mortgage or shared ownership: 27%
- Social rented: 23.2%
- Private rented or rent-free: 21.2%
How to leverage Middlesbrough’s housing market?
Investing into property in Middlesbrough, could come in many forms. The fact that 23.2% of housing in Middlesbrough is designated to social rent, suggests a significant portion of the population relies on rented housing.
Investors can tap into this demand by offering well-maintained, privately rented properties which appeal to individuals and families who may not be eligible for social housing.
Sunderland property investments
Sunderland, another city within the region, offers a mix of residential options including waterfront properties along the River Wear, suburban family homes and investment opportunities in its growing cityscape.
Based on the 2021 ONS census, Sunderland’s housing market consists of:
- Owned outright: 31.4%
- Mortgage or shared ownership: 27.1%
- Social rented: 26.6%
- Private rented or rent-free: 14.9%
How to leverage Sunderlands housing market?
Given Sunderland’s strong manufacturing presence, there is likely a demand for affordable housing among the workforce in this sector. Investors can consider acquiring or developing properties that cater to the housing needs of manufacturing employees such as affordable rental apartments or shared ownership homes located conveniently near industrial areas.
The North West of England presents a dynamic and multifaceted environment for property investment and business growth. Its diverse economy, strategic location and ongoing developments make it an appealing choice for those seeking opportunities outside of London and the South East.
North West of England demographic drill down
*Demographics using 2021 data from Varbes.com
Population: 7,422,295
Population growth: 0.74% since 2020
Age structure:
- 0-15: 17.55%
- 16-64: 63.66%
- 65+: 18.79%
Average salary: £35,807
Average UK house price (June 2023 ONS): £215,631
What does this mean for property investments in the North West?
While the population growth rate of 0.74% since 2020 may not be extremely high, it still signifies a steady increase in the population. This pimples a consistent and potentially growing demand for housing, which can be advantageous for property investors looking for long-term opportunities.
The region’s age structure with a substantial percentage of individuals aged 16-64 (63.66%), indicates a significant working-age population.
This demographic typically drives demand for rental properties and can contribute to a stable rental market.
The average house price in the North West (£215,631 as of June 2023) is notably lower than the UK average. Property investors can leverage this affordability to attract both home buyers and renters, making it an appealing market for those seeking budget-friendly options.
The average salary in the North West of England (£35,807) is competitive and aligns with the national average. This suggests that residents have the financial capacity to consider homeownership or may be looking for quality rental properties.
The North West of England offers a variety of cities and towns that present attractive opportunities for property investment UK. The North West of England is currently the UK’s fastest-growing region, and property prices are expected to experience the most substantial increase compared to any other UK region over the next 5 years.
Due to the growth of the North West, there are plenty of opportunities for investing into property, with some of the best being Manchester, Liverpool and Blackpool.
Investing in Manchester
As a major economic and cultural hub, Manchester offers a diverse range of property investment opportunities The city has experienced significant regeneration and development, particularly in areas like the city centre, Salford Quays and Ancoats. These areas are known for high rental demand and potential for capital appreciation.
Based on the 2021 ONS census, Manchester’s housing market consists of:
- Owned outright or with a mortgage: 37.2%%
- Shared ownership: 0.8%
- Social rented: 29.5%
- Private rented or rent-free: 32.5%
How to leverage investments in Manchester?
Property investors in Manchester should consider leveraging the fact that 32.5% of Manchester’s housing market is in the private rented sector and indicates a strong demand for rental properties. You could target properties that cater to students close to the Universities or libraries.
Given the ongoing regeneration and development in certain areas like Salford, Tameside and Wigan, investors should keep an eye on neighbourhoods with the potential for significant capital appreciation.
Property investments in Liverpool
Liverpool has seen substantial investment and revitalisation in recent years, making it an appealing choice for property investors. The city centre, especially the Baltic Triangle and Ropewalks is known for its growth potential. Suburbs like Allerton and Mossley Hill are popular for families, while areas near the universities like Edge Hill and Mount Pleasant are ideal for student accommodation investments.
Based on the 2021 ONS census, Liverpool’s housing market consists of:
- Owned outright or with a mortgage: 46.8%
- Shared ownership: 0.7%
- Social rented: 26.4%
- Private rented or rent-free: 26.2%
How to leverage investments in Liverpool?
Liverpool offers a diverse range of investment options, including the city centre, Birkenhead, and the wider Wirral. Investors should consider targeting the student market and consider investing in properties to accommodate these. This may include furnished flats, shared housing or purpose built student accommodation.
Investing in property in Blackpool
Known for its seaside attractions, Blackpool attracts tourists year round. Investors interested in the tourism, hospitality and short-term rental market may be able to find affordable properties here.
Based on the 2021 ONS census, Blackpool’s housing market consists of:
- Owned outright or with a mortgage: 57.5%
- Shared ownership: 0.3%
- Social rented: 10.3%
- Private rented or rent-free: 31.9%
How do you leverage property investments in Blackpool?
Blackpool’s reputation as a tourist destination presents an opportunity for property investors in the tourism industry. You can leverage the demand for short-term rentals by investing in properties that cater to tourists. This could include vacation rentals, bed and breakfasts, or boutique hotels. Location is key so aim for properties in or near popular tourist areas.
You can consider the demand for short-term rentals, especially during peak tourist seasons. Invest in properties that are well-maintained, attractively furnished, and marketed effectively to capitalise on this market. Platforms like Airbn and Booking.com can be valuable tools for reaching potential guests.
Yorkshire and the Humber is often considered as an attractive place to invest in property. The region offers a diverse range of investment opportunities, from bustling urban hot spots like Leeds and Sheffield to picturesque rural areas.
Yorkshire has shown its resilience within the property market, with historically stable property prices and steady rental demand. The region benefits from a robust local economy, excellent transport links and a range of education institutions making it an attractive location for many renters.
Additionally the relatively lower property prices compared to the South of England make it more accessible for investors, providing the potential for favourable yields and capital appreciation.
Yorkshire demographic drill down
*Demographics using 2021 data from Varbes.com
Population: 5,481,431
Population growth: -0.81% since 2020
Age structure:
- 0-15: 17.42%
- 16-64: 63.47%
- 65+: 19.11%
Average salary: £35,334
Average UK house price (June 2023 ONS): £208,867
What does this mean for property investments in Yorkshire?
Despite a slight population decline, Yorkshire’s population still remains substantial. The demographic stability suggests consistent demand for housing especially considering it’s ageing population.
With 19.11% of the population aged 65 and above, there is also potential for retirement properties that cater to the elderly. These could be in the form of self-serviced retirement flats, assisted living facilities or accessible housing.
The average salary in Yorkshire is £35,334 which aligns with the national average and suggests that residents have the financial capacity to consider homeownership or may be looking for quality rental properties.
This, paired with Yorkshire’s average house price being £80,000 less than the national average means investors could buy properties at a lower cost and renovate them to a high standard in order to rent out as a buy-to-let property to young professionals and families.
Given the significant working-age population and relatively affordable property prices, buy-to-let investments are an attractive option.
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WHERE TO INVEST IN YORKSHIRE?
When looking to invest in property in Yorkshire, UK, an investor should consider several factors to make the best choice for their investment portfolio, Yorkshire offers a diverse property market, making it an attractive place to buy property.
Its essential to research the local property market and property prices in various areas to identify the best yield potential. Property development projects in up-and-coming areas like Bradford, Sheffield and Wakefield can offer a good investment opportunity, potentially increasing property prices and rental income over time.
Should you invest in Bradford?
Bradford offers a mix of affordability and investment potential. Some areas like the city centre and Great Horton can be particularly attractive for student accommodation based investors. Whereas areas like Barkerend West are attractive to investors looking to develop run down properties.
Based on the 2021 ONS census, Bradford’s housing market consists of:
- Owned outright or with a mortgage: 61.7%
- Shared ownership: 0.5%
- Social rented: 14.6%
- Private rented or rent-free: 23.1%
How do you leverage property investments in Bradford?
With almost a quarter of Bradfords housing market as privately rented, it suggests Bradfords rental market is stable. There is a high demand for buy-to-let properties, and even higher demand for recently refurbished properties to be bought outright.
Bradford played a heavy hand in the industrial revolution, and so has areas like Rayleigh Street and Shipley which historically housed the booming factories. Although a lot of the land has gone through some regeneration, there are still areas which are up and coming.
Investing in Sheffield
Sheffield offers a more affordable property market compared to some other Yorkshire cities. It has a growing student population, making it a viable option for student housing investments. It’s also on the HS2 planned network, meaning in a few years the property prices are likely to increase.
Based on the 2021 ONS census, Sheffield’s housing market consists of:
- Owned outright or with a mortgage: 58.3%
- Shared ownership: 0.3%
- Social rented: 22.6%
- Private rented or rent-free: 18.8%
How do you leverage property investments in Sheffield?
The relatively high percentage of social rented properties (22.6%) suggests a potential market for landlords interested in participating in social housing schemes or housing associations.
The percentage of properties owned outright or with a mortgage (58.3%) implies a strong homeownership culture in Sheffield, Investors may consider opportunities related to property flips, renovations, or home improvement services.
Investing into property in Wakefield
Wakefield is relatively close to Leeds and has seen a lot of growth in recent years, making it an option for more budget conscious investors, beginner investors or investors looking to make a quick flip.
Based on the 2021 ONS census, Wakefield housing market consists of:
- Owned outright or with a mortgage: 62.6%
- Shared ownership: 0.8%
- Social rented: 21.7%
- Private rented or rent-free: 15%
How do you leverage property investments in Wakefield?
Investing in property in Wakefield is attractive to investors on many fronts as the city boasts a strong homeownership culture, with a majority of properties owned outright or with a mortgage, indicating stability and potential for property value appreciation.
Additionally, the presence of social rented properties and a significant private rented sector suggests a steady demand for rental properties, making it an appealing destination for buy-to-let investors. Wakefield’s strategic location in West Yorkshire offers proximity to major cities like Leeds and Sheffield, making it part of the wider economic growth in the region.
If you’re considering investing in property in the North of England, you will benefit from lower than London purchase prices, strong rental markets and growing demand for more rental properties.
Investing in UK property is a common way to invest, and there are various factors to consider when deciding whether to invest into property up North. The type of investment you choose, such as residential property, commercial properties, or buy-to-let, plays a significant role in the decision.
Properties up North often come with a more affordable price tag compared to the South, making it an attractive option for those looking to get on the property ladder or expand their portfolio.
Investing in property doesn’t necessarily mean buying a property and renting it out to tenants, there is also the opportunity of buying a property and holding property until you gain capital appreciation over time.
With the introduction of the Northern Powerhouse initiative and the HS2 railway, the North of England is only going to continue growing in economic importance. Whatever type of property you invest in, the North will likely show you amazing returns be it as a short return on investment or a long term investment.
The UK property market has long shown resilience, and certain Northern regions have experienced notable growth in recent years. So, investing in a property up North can indeed be a viable way to invest.
Learn more about how to invest in the North below…
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