The UK’s Northern cities continue to attract interest from investors and tenants and despite the escalating growth, it’s still relatively affordable for investors and owner-occupiers alike. Far from grim.
Analysis by Ascend Properties has found that property prices average at £167,211 across the Northern regions, which is less than half the typical price in the South (357,257).
The North West (12.0%) has seen the steepest house price inflation, bringing prices to a typical £184,234, while the Yorkshire and the Humber (8.9% £179,248) and the North East (8.5% £138,151) aren’t far behind.
An East-West divide
Curiously, there also appears to be an East-West divide developing in England.
The East Midlands (7.6%) outperformed every area in the South in terms of price growth, while the West Midlands saw the lowest growth in the country (4.7%).
A number of people have moved out of the largest cities in search of green space due to the pandemic, which perhaps explains why the West Midlands, containing the UK’s ‘second city’ in Birmingham, is lagging behind. There’s a similar trend in London, which recorded the second-lowest growth (5.3%) in England.
Rental yields are also strongest up North - despite slipping annually. Rental yields averaged at 5.2% in the North of England, compared to 4.1% in the Midlands and 3.8% in the South.
Although strong rental growth in the region means rental yields have declined marginally year on year, the area remains the best bet for landlords, with the UK’s best rental yields found in Yorkshire and the Humber, at 6.0%.
Ged McPartlin, Managing Director of Ascend Properties, commented: “The North of England has long been where investors can get bang for their buck, and the study certifies why.
“Stronger rental yields, affordable prices for buyers and renters alike, as well as rising prices, make the region a hotbed of activity.
“The only surprise is that yields have fallen in the North, though if prices continue to rise in those regions that should dwarf a small decrease in yearly income.
“We’re pleased the so-called Northern Powerhouse appears to be becoming a reality, as more people seek to live and work in more affordable areas of England.”
