To Receive Better Returns from Your Investment - Go North!

Are you looking for better returns on your rental investment property? As I wrote in this blog in December, the UK's 2.5 million private landlords are coming under pressure from an increasing number of taxes and regulations. This trend is set to continue in 2019, making strong rental yields more important than ever. As a result, many investors are now looking north for better returns.

Why the North is Attractive for Buy-to-Let Investors

Property firm Your Move recently reported that the North East and North West are particularly appealing markets for investors. Low property prices combined with large student populations create strong demand, ensuring good rental yields and fewer void periods. Their rental tracker found that in the year to November 2018, landlords in the North East earned an average rental return of 5%, while those in the North West achieved 4.8%.

Growing Interest in Northern Property Markets

With rising demand and strong transport links bringing more people to northern cities, landlords are actively seeking opportunities in these regions. While interest in London’s market slows, property investors are turning their attention to cities like Manchester and Liverpool, where high percentage returns are driving increased investment. However, the growing presence of large-scale build-to-rent (BTR) operators means traditional buy-to-let (BTL) landlords need to stay competitive.

The Manchester Market – A Booming Investment Hub

Manchester has experienced an 8% rise in city centre rental supply, raising concerns about market saturation. Ringley now has a significant presence in Manchester, partnering with JP Hay in 2018 to manage BTR and BTL properties across the North. Our key advice for landlords is to maintain and equip their properties to meet tenant expectations and ensure listings accurately reflect what is being offered.

Competition is Fierce – Standing Out in a Crowded Market

Despite strong demand, new builds are flooding the market, making competition tough. However, not all tenants want a modern BTR apartment. Older properties, suburban homes, and traditional houses can still attract tenants if they are well-maintained, well-presented, and competitively priced. Location matters, but so does quality and responsible property management.

Investing in Property for Long-Term Returns

Your Move highlights that landlords willing to invest in their properties will see the best returns. Ensuring your rental is in good condition, meets compliance standards, and appeals to tenant preferences will lead to higher yields and better occupancy rates. As interest in northern markets continues to rise, landlords who take the right steps now can benefit from long-term financial gains.