While the boom in buy to let property investment in London has been well documented it appears that cities further north are now seeing more people getting involved in the sector.
Manchester agent Philip James has been monitoring the local market and said that the return of the buy to let landlord is a welcome change.
In the first quarter of 2011 rental figures have increased by nearly 8% as a flood of landlords return to the northern property market. The mini boom has been boosted by low interest rates, restricted borrowing and the lack of first time buyers.
‘Property is now very affordable in Manchester, but only for those with money behind them or a decent deposit. And for the north of England, that means landlords, both professional and amateur,’ said Philip James owner Philip Nolan.
‘Landlords are having a field day in the north of England. In the first quarter of 2011 one of our Manchester branches witnessed two thirds of its entire rental property stock rise sharply in value without a single property dropping. This is a record for Manchester and we expect the trend to continue throughout 2011 and into 2012,’ he explained.
In Hull, in Yorkshire there is also increased interest with the new £165 million Humber Quays development proving popular. It overlooks the Humber and has World Trade Centre status, with high quality office space in an area where a lot of investment is taking place.
This year has seen Siemens’ decision to build an £80 million turbine factory marking a major milestone in the city’s history. Industry on this scale has not been seen for decades. The Siemens factory, to be built on 130 acres of Associated British Ports (ABP) land at Alexandra Dock, could generate up to 10,000 new jobs in the region and will feed into the biggest wind farms the world has ever seen.
Alan Forsyth, director of property investment company, Property Secrets, believes Hull is one city to consider as a lucrative buy to let market from a very affordable starting point. Fully refurbished properties can be secured at up to 20% below official RICS valuations with a minimum 7% rental return.
‘We have many investors from other parts of the UK attracted by the positive cash flow, and affordable properties here and are assisting many clients in buying up property portfolios generating passive income on a monthly basis,’ he said.