With the plans for the Northern Powerhouse in full flow and the housing market in London currently being outperformed by other regional towns and cities, a growing number of property investors, including buy-to-let landlords, are turning to other areas in the north of England which tend to offer greater yields and potentially better prospects for capital growth.
But while popular cities like Manchester, Leeds and Liverpool have attracted significantly more investment, buy-to-let landlords who are prepared to also target other areas across the UK may wish to consider buying property in Leicester, according to Richard Forman, head of sales and marketing at Delph Property Group.
“The North West will still offer great returns for buy-to-let investors in 2018, but we are also very encouraged by what is going on in Leicester,” he said. “Things have really turned a corner in the city, following a sustained period of inward investment.”
Forman points out that a number of high profile companies have moved to Leicester in recent years, which has attracted a wave of skilled young workers, helping to boost demand for private rented housing and boost rental yields.
He continued: “The local area is changing very quickly, but there is a real lack of modern housing for young professionals and foreign students.
“Demand for city centre apartments has been so strong that we are achieving yields as high 8.5% - which should excite even the most cautious investor.”