The North West: A BTL powerhouse
The recent axing of an East Midlands–Leeds high-speed line and a scaling back of the Northern Powerhouse Rail (NPR) project has drawn fresh attention to the government’s ‘levelling up’ plans.
When it comes to house prices, the housing market and rental demand, the capital and the South-East have often proved to be the source of much interest. However, for many savvy property professionals – even those who may have had a long history of operating in and around this area – heads have been turned in recent years to opportunities further afield. This is especially evident over the past 18 months as a number of landlords and investors have looked to explore more affordable regions in search of lower initial outlays, greater longer-term yields, the ability to mitigate risk and portfolio diversification.
With rental demand growing in many Northern areas, as evident in recent data released by ARLA Propertymark, this is only likely to attract even more landlords and investors. The report identified the North West as having the highest number of new tenants registered per branch, with an average of 163 prospective renters being signed up across branches in October. Yorkshire & Humberside, Wales and Northern Ireland were at the opposing end of the spectrum with an average of 26 new tenants registering per branch.
Property professionals who have identified the potential of the North West no longer need Northern Powerhouse undertones to realise that opportunities will continue to present themselves and that the BTL market will underpin a sustained lack of affordable housing across the region. A combination which bodes well for activity and enquiry levels in 2022 and beyond.