North West Is Best for Rental Yields
Over recent years, we have seen rental prices in the Manchester area rise exponentially and, coupled with low house prices, this has made property investment an attractive proposition for those with spare cash.
And now a survey by Paragon Mortgages has shown that for high rental yields, the North West is best.
In the first quarter of 2012, Paragon found that properties in the area were achieving yields of 6.
6% on average.
Not only is this a rise of 0.
7% since the last quarter of 2011 but it also puts the North West way ahead of London, where average yields in early 2012 were just 5.
9%.
Indeed, evidence of a North/South divide has emerged as the second highest rental yields were recorded in the North East, at 6.
5%.
Northern property, then, is proving a savvy bet both for existing investors and for those looking to increase their property portfolios.
John Heron, director of Paragon Mortgages, says: "The rental yield figure is important for landlords as it gives a good indication of how well a property and - in a wider sense - a portfolio is performing.
" The explanation for these healthy rental yield figures in the North West comes in the form of research by the Land Registry House Price Index, which has shown that house prices have fallen 3.
5% in the North West over the past year.
By snapping up these property bargains, investors are seeing fantastic returns on their investments.
The worst performing areas for rental yields were Scotland and the East and West Midlands, according to Paragon, where the average yield was only 5.
5 per cent, showing just to what extent the North West is powering ahead in terms of investment returns.
With these combined benefits of cheap house prices and high rental returns, the North West is drawing interest from investors all over the country.
Experts predict that those who normally turn to London to make their property investments will now look seriously at the major North West towns and cities, such as Manchester.
With the high concentration of property in Manchester City Centre and the environs, coupled with continuing demand for rental property from professionals and students in particular, now is a great time to be looking at investing in Manchester.
It is particularly important to get a feel of a city and its areas before you take the plunge with investing and that is where estate agents can be of real help, particularly if you are looking to buy in an area that is unknown to you.
A good agent will know what kind of tenants are interested in which areas, which locations are better for high rental yields and where is most popular right now, as well as the areas that are up and coming.
In a city like Manchester, the high proportion of apartments in the city centre and surrounding areas can be baffling for a prospective investor, so it really is worthwhile speaking to someone with insider knowledge.
After all, you want your investment to pay off! At Julie Twist Properties, we can advise you on all types of property purchase in Manchester and the surrounding area, whether it is for an investment or for a new home.
What's more, we can cater for all of your lettings needs, from finding tenants right down to managing your whole tenancy.
Follow the link below to find out more.
And now a survey by Paragon Mortgages has shown that for high rental yields, the North West is best.
In the first quarter of 2012, Paragon found that properties in the area were achieving yields of 6.
6% on average.
Not only is this a rise of 0.
7% since the last quarter of 2011 but it also puts the North West way ahead of London, where average yields in early 2012 were just 5.
9%.
Indeed, evidence of a North/South divide has emerged as the second highest rental yields were recorded in the North East, at 6.
5%.
Northern property, then, is proving a savvy bet both for existing investors and for those looking to increase their property portfolios.
John Heron, director of Paragon Mortgages, says: "The rental yield figure is important for landlords as it gives a good indication of how well a property and - in a wider sense - a portfolio is performing.
" The explanation for these healthy rental yield figures in the North West comes in the form of research by the Land Registry House Price Index, which has shown that house prices have fallen 3.
5% in the North West over the past year.
By snapping up these property bargains, investors are seeing fantastic returns on their investments.
The worst performing areas for rental yields were Scotland and the East and West Midlands, according to Paragon, where the average yield was only 5.
5 per cent, showing just to what extent the North West is powering ahead in terms of investment returns.
With these combined benefits of cheap house prices and high rental returns, the North West is drawing interest from investors all over the country.
Experts predict that those who normally turn to London to make their property investments will now look seriously at the major North West towns and cities, such as Manchester.
With the high concentration of property in Manchester City Centre and the environs, coupled with continuing demand for rental property from professionals and students in particular, now is a great time to be looking at investing in Manchester.
It is particularly important to get a feel of a city and its areas before you take the plunge with investing and that is where estate agents can be of real help, particularly if you are looking to buy in an area that is unknown to you.
A good agent will know what kind of tenants are interested in which areas, which locations are better for high rental yields and where is most popular right now, as well as the areas that are up and coming.
In a city like Manchester, the high proportion of apartments in the city centre and surrounding areas can be baffling for a prospective investor, so it really is worthwhile speaking to someone with insider knowledge.
After all, you want your investment to pay off! At Julie Twist Properties, we can advise you on all types of property purchase in Manchester and the surrounding area, whether it is for an investment or for a new home.
What's more, we can cater for all of your lettings needs, from finding tenants right down to managing your whole tenancy.
Follow the link below to find out more.
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