The property market in the North of the UK is outperforming the property market in the South according to new research released by property investment platform, Sourced Franchise, as both capital appreciation and rental yields are reportedly higher in the North than in the South with the market in the North “significantly more affordable in the south, making it more accessible” for investors.
After analysing annual fluctuations in house prices, rental values, and rental yields between the markets in the North and the South, Sourced Franchise has determined that the North has the strongest housing market in both capital appreciation and rental yields compared to the South, with the famous north-south divide growing wider.
The recently compiled data has shown that in the North the average property price has increased annually by +2.7% (£5,517) - growing from £205,875 to £211,392 in just 12 months. The South, however, has seen an increase in property prices of just +0.8% (£3,198), where the average property price has grown from £385,719 to £388,917 in the same time frame.
In addition, all of the top four performing regions for capital growth in the UK over the last 12 months are located in the North – with the North West, North East, East Midlands and West Midlands leading the growth in the UK property market, increasing by (2.7%, 4%, 3.4%, and 2.2% respectively.
“The North is now outperforming the South on multiple fronts and is, in many ways, now the driving force of positive growth. For property investors, the North now offers much better opportunities. Not only are prices significantly more affordable than in the South, making it the more accessible market, but returns are also markedly stronger.” Chris Kirkwood, Director at Sourced Franchise.‘‘
When considering rental yields across the UK, the North also has the South beat, with the North currently providing on average a 4.7% yield to investors, compared to the 4.2% yield offered by the South.
The strongest yields in the UK are found in the North West, offering a 5.5% yield, followed by a 4.9% yield in Yorkshire & Humber, compared to London’s 4.7% yield, and on a region-by-region basis, the North outperforms the South entirely.
"Much of this is being driven by a shift of national focus away from London and towards cities such as Manchester and Newcastle. We’re seeing major businesses move north from the capital, including the likes of Channel 4 and the BBC, and we’re also seeing young families escape the claustrophobic prices in the South for the more accessible markets up North.” Chris Kirkwood, Director at Sourced Franchise.‘‘
To learn more about how the North is the better location for your property investment in the UK and how best to capitalise on the current market, get in touch with our expert team today or call them direct at +44 (0) 161 791 4600.