Beyond London: Why Northern UK Cities Attract London Landlords
Published by Magnate Assets on
Oct 27, 2023
In a bid to explore more promising prospects beyond the capital, London-based landlords are venturing northward for their property investments. According to a recent report, approximately two-thirds of buy-to-let investors in London have chosen to acquire properties in various parts of the UK this year, as opposed to staying within the confines of the city.
The northern regions of England are experiencing a surge in interest, now accounting for 24% of all purchases made by London-based landlords. This marks a remarkable shift from the mere 1% recorded a decade ago.
Aneisha Beveridge, Head of Research at Hamptons, attributes this trend to higher taxes imposed on landlords, which have reduced the profitability of the London rental market. As a result, investors are looking further afield to secure more favorable deals.
Beveridge points out that the North East, in particular, offers a ripe investment landscape with rental yields reaching 9.1%, in stark contrast to London's 5.6%. She highlights the potential for an investor with £100,000 to acquire one or even multiple properties in certain northern areas, a feat challenging to achieve in the south.
Beveridge notes, "Up in the north, we've seen prices rising more. So investors there have had the best of both worlds over the last seven to eight years."
This trend is not exclusive to UK investors; overseas investors should also consider the allure of the north for promising returns.
Unlock new horizons in the world of property investment. Discover the North!