From a property investment perspective, the North West offers huge capital appreciation potential and attractive yields, not to mention good-value properties. For example, Savills has predicted the region will enjoy 20.2% capital growth over the next five years. In addition, they have highlighted that the North West buy-to-let market could enjoy returns of over 9% during 2024, making it one of the most lucrative buy-to-markets in the UK.
For that reason, Liverpool and Manchester could prove to be savvy additions to a property portfolio. Both cities have high graduate retention rates, substantial student populations, and considerable tourism sectors, thanks to the local music, arts and football scenes.
For this reason, buy-to-let investors could earn considerable profits by choosing short-term tenancies or serviced accommodation. For example, you may want to invest in Airbnb property investment. Alternatively, you may want to invest in purpose-built student accommodation.
Both cities offer good average rental yields. However, Zoopla research points out that Liverpool has one of the best average gross yields in the UK, reaching 7.43%.
In addition, property prices are remarkably lower compared to the national average. According to the latest figures from the HM Land Registry UK House Price Index, the average property in Liverpool costs £177,076, meaning investors could potentially purchase five properties in Liverpool for the price they would pay for one in London. This allows investors who invest and let in Liverpool to diversify their portfolios and potentially earn higher profits.
Discover More: For more regional buy-to-let insights, feel free to look at some of our handy areas guides, including:
