North West sees surge in demand for BTL property

North West sees surge in demand for BTL property

New research shows that demand for BTL property in the North West has soared by 38% year on year, despite Brexit and increased stamp duty costs according to The Mistoria Group, specialists in high yielding investment property in the North West.

Cities and towns in what is known as the Northern Powerhouse are proving to offer the best investment opportunities in buy-to-let property, with yields of 7.08% in Salford, 5.96% in Leeds and 5.79% in Manchester.

Manchester, the unofficial home of the Northern Powerhouse, sits in the Top 10 buy-to-let postcodes in the UK, with rental price growth of 7.53% and yields of 6.11%.

The resilient property market in the North West is helped by the highly successful regeneration of the area which has bought new jobs, transport links and a range of large housing projects.   A recent report, Powerhouse 2050 says the north of England could be £100bn more productive and be world-leading in four fields – including energy and digital – with the right backing.  It also calls for £60m for the north to become the UK’s first region commit to industrial digitisation and £100m to reinforce the UK as a leader in health data.


Mish Liyanage, Managing Director of The Mistoria Group comments: “The housing market in the North West is stable and has not been impacted by Brexit, proving the strength of the property market and economy as a whole, in this region.

The Northern Powerhouse offers investors unbeatable BTL opportunities, way ahead of London and the South East. Affordable property prices and a booming economy is drawing students, families and professionals to the region.

HMOs in Liverpool and Salford have become very popular with investors, as both cities have a high population of students and young professionals.  Also in both Salford and Liverpool, Article 4 is not in operation, so investors can convert a family home, or a home used by a single person (C3 -dwelling house/flat) to a small shared house of up to six unrelated individuals (C4 –HMO), without any planning permission.

Whilst the market conditions in many areas are becoming more developed and competitive, a HMO property with a superior spec can deliver landlords and investors an average gross rental yield of 13%, leveraged return on investment of 35% plus, before any charges and voids.  

For example, investors can acquire a high quality, three bed HMO which houses three students, from £120,000 upwards in Liverpool. The return on investment is very attractive too, with 13% (8% cash rental and 5% capital growth). The gross rent on the property will exceed £1,235 pcm, as each room is rented out. Larger rooms, open plan living and kitchen areas, ensuites, TVs, unlimited broadband, premium kitchen appliances and furnishings are the type of features that help to generate a high yielding HMO.

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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