View more on these topics

Buy-To-Let Watch: Look north for rent opportunities

The private rental sector had a mixed 2018 – London remains out of reach for many – but the big Northern cities still offer room for growth

The performance of the private rental sector in 2018 was certainly varied, especially when viewed from a regional perspective.

Landbay’s National Rent Review suggested Edinburgh and Nottingham saw the largest annual rental growth in the UK. Edinburgh saw rent rises of 4.63 per cent, with an average rent of £1,073, while rents within Nottingham increased by 4.62 per cent to hit an average monthly figure of £688. Aberdeenshire saw the largest decline, of 7 per cent.

Rents as a whole across the UK were reported to have risen by an average of 0.97 per cent. Six London boroughs saw declining rental figures – but overall figures across the capital saw an average rise of 0.58 per cent. Despite these figures, London is still unaffordable for many, with other UK cities becoming increasingly attractive for tenants and investors.

For the past few years I have been advising landlords to look north. Cities within the proposed Northern Powerhouse, including Liverpool, Manchester and Leeds, have seen huge investment, creating employment and amenities that have proved to be attractive.

Because these cities have not experienced the extortionate rents of London, there is room for growth.

To further underline this, Your Move’s England and Wales Rental Tracker found property investors in the North East achieved an annual rental yield of 5 per cent in the year to November 2018.

This figure fell slightly to 4.8 per cent for those in the North West. In contrast, yields stood at 3.15 per cent in London, 3.31 per cent in the South West and 3.32 per cent in the South East.

And the future continues to look bright for the Northern regions, with big developments planned.

Leeds was recently named as the new home for Channel 4 HQ and, if the BBC’s move to Salford is anything to go by, this development should reap huge economic rewards.

London is likely to come under even further pressure in 2019, but there are still plenty of opportunities for landlords out there – provided they are willing to evaluate locations, propositions and their future plans.

Ying Tan is managing director of the Buy to Let Club

Recommended

John-Eastgate-Speaking-2013-700x450.jpg

John Eastgate leaving One Savings Bank for Shawbrook

Shawbrook has appointed John Eastgate as managing director for its commercial mortgage business. Eastgate will join the specialist lender in the summer. He is currently sales and marketing director at One Savings Bank and has been at the lender for more than six years. He will bring nearly 30 years’ experience in financial services having […]

Legal & General announce equity release workshops

Legal & General is to offer CII-accredited workshops for mortgages intermediaries. The workshops aim to support advisers taking the Level-3 certificate in equity release; the event will give an overview of the syllabus for the qualification and provide guidance practice. The topics the workshop will include are how to target appropriate customers, key equity release […]

Auto-enrolment

Minimal compliance: Is it enough?

Along with global legal practice Eversheds Sutherland, we look at why employers may want to do more than simply meet the legal minimum in terms of their auto-enrolment duties. Our new policy paper — ‘Automatic enrolment and the law – how far do employers’ duties extend?’ — summarises current minimum duties of employers to enrol […]

Newsletter

News and expert analysis straight to your inbox

Sign up