04 October 2017
House prices are rising in all parts of the country except London, and buy-to-let investors are increasingly shunning the traditionally profitable capital city for northern hotspots where property is cheap and returns are high.
According to recent data from Nationwide Building Society, property prices in London fell by 0.6 per cent in the year to September, compared to the national average growth of two per cent.
Separate data from Hometrack, also published last week, pointed to Manchester, Birmingham and Edinburgh specifically as cities where house prices have soared ahead of other UK regions, with growth up 7.3 per cent, 6.7 per cent and 6.6 per cent, respectively.
Surging house prices in these cities coupled with attractive rental yields mean they’re quickly becoming a desirable location for buy-to-let investors. Landlords in Manchester, for instance, received an average yield of 6.9 per cent in July of this year, according to figures from HM Land registry.
First-time buyers are also being lured to urban hotspots such as Liverpool and Manchester in the hope of snapping up a home that is a fraction of the price of London property.
A typical two-bedroom flat in London costs just over £500,000, according to Savills.
The property below, for example, situated in leafy Clapham, London, offers two bedrooms, a bathroom, a reception/dining room and a balcony, spread over 625 sq ft. The flat is a five-minute walk from Battersea Park, the closest station, and about a 30 minute train drive into the city centre.