From 172 buy-to-let locations, it has been revealed that the North West region of the UK is the best location to invest in buy-to-let properties. This has been recognized by property investors as North West investment has reached its highest level in over a decade. In 2018, property investment in the North West reached £3.17 billion – the highest level pre-financial crisis (in which the highest year recorded was in 2007 with £3.27 billion worth of investment).
An AI powered property investment portal by One and Only Pro found that the five locations with highest concentration of high scoring properties can be found in the North West of England. Salford topped the list with 21% of ‘Diamond’ properties (a property that scores 10 out of 10 through the algorithm) located in the West Manchester region.
Ben Roberts, director of capital markets at Lambert Smith Hampton in the North West said: “2018’s performance shows that despite ongoing political and economic uncertainty, the North West is still a very attractive market. In the final quarter of last year, overseas investors were hot on the heels of UK institutions, investing a total £323m compared with the institutions at £453m. This was particularly evident in the alternatives class – the clear overall winner of last year – and we expect to see this outperform traditional asset classes for some time.”
This growth clearly shows that domestic factors outweigh uncertainty in the general UK market – particularly due to the ongoing events associated with Brexit. Supply continues to meet the demand across these regions, this, combined with increased private investment and government strategies (i.e. the Northern Powerhouse scheme – a government initiative to redirect investment from London to Northern and Midlands regions such as Manchester, Liverpool and Birmingham) and therefore, capital growth and rental yield continue to perform strongly.