Buy to let specialist reports surge in North West rent prices
Register for free to receive latest news stories direct to your inboxRegister
Rents in the North West are growing faster than any other region in the UK, with rental growth in London continuing to slow over the past few months.
That is the claim by high-yielding student buy-to-let investment specialist Mistoria Group.
It said rental values in the North East, North West, East Midlands, Scotland, Yorkshire & Humberside, Northern Ireland and Wales all rose at a rate faster than the UK average. (Source: The HomeLet Rental Index, March 2020).
Average rents across the UK rose by 1.8% in March 2020 year-on-year, with the average monthly rent sitting at £959 per month.
When London is excluded, the average UK rental value was £793 in March 2020, up 1.4% on last year.
The data also reveals that rents rose from last year in nine out of 12 of the regions covered in the research.
Data from The Mistoria Group shows that rent prices in the cities and towns in the Northern Powerhouse have risen by an average of 17%, with rental cash yields of nine per cent in Salford, and seven per cent in Liverpool and Bolton.
With a capital appreciation of five per cent, investors are looking at total yields between 12-14%, which is extremely attractive. The group said if geared, the returns could be between 20% to as high as 35%.
The resilient property market in the North West is helped by the highly-successful regeneration of the area which has brought new jobs, transport links and a range of large housing projects, proving the strength of the economy as a whole in the region.
According to Mish Liyanage, managing director of The Mistoria Group, there is growing demand for high-end HMO (homes of multiple occupancy) accommodation among young professionals and students across the Salford, Bolton, Manchester and Liverpool areas
He said: “BTL (buy to let) investors can buy a luxury HMOs in the North West from £120k upwards. The return on investment is very attractive, too, with an average 13% yield (eight per cent cash rental and five per cent capital growth).”