The North/South UK property Chasm.
Property in the North of the UK has long been more affordable than that in the South, however with average house prices in the capital now costing £437,000 – nearly three times the price of a comparable property in the north east of England, the chasm is now bigger than ever.
In 2013, property prices in London leapt by more than 25% and continues to inflate faster than many other regions of the UK. Over the year to June 2015, the largest annual property price increases were seen in the East at 9.2%, compared to the North East, where prices have increased 2.8% over the year.
As a result, the concept of “Generation Rent” is forecast for steep growth as an increasing number of individuals are being priced out of the market. Rising house prices, stagnant wages and increasing rental rates, are keeping tenants firmly in their place. Unable to save for a deposit on a property, and with a lack of suitable social housing, private renting is usually the only option for many.
This, combined with the UK Governments “Northern Powerhouse” proposal, provides a significant opportunity for property investors and landlords willing to redirect their funds out of the south of England to northern cities.
The Northern Powerhouse plans detail significant investment into the north of England with a focus on the core cities of Manchester, Leeds and Sheffield and their surrounding areas with an aim to rebalance the UK economy away from London and the South-East. As a result, billions of pounds of investment is being driven into these cities. The result? More job creation, property price rises, increasing rents and an increasing number of renters as individuals look to move to the cities in search of new opportunity.
With property prices in the North still far more affordable than those of the south, the region provides an affordable solution to investors looking to purchase property away from the capital. With global currencies continuing to decline against the pound, international interest in the northern areas such as Manchester, Leeds, Bradford and Liverpool is steadily increasing.
The Northern Powerhouse plans open up significant opportunity for wealthy investors looking to benefit from the lucrative UK property market at a key time within the Northern UK’s development.
Select Portfolio offer a number of excellent properties for sale in the north of the UK including Bradford, Manchester, North Wales and Birmingham. The properties deliver stunning ROI with exceptional rental yields and significant capital growth potential. The properties offer secure opportunities and are assigned to the individual/company of your choice. If you're unsure of how to maximise the benefits of investing in property in the North of England please do not hesitate to contact us to speak to one of our friendly, knowledgeable advisors today.