Why are Londoners Leaving The Capital To Hit The North
It is evident that record numbers of people are fleeing the capital in order to find more affordable housing opportunities up north. Northern cities like Manchester and Liverpool are becoming more attractive for those wishing to live more comfortably. In 2017, 10,200 people left London to move up to Manchester, whilst only 8,870 chose to move from Manchester to London.
If you consider the overall property market in the country’s capital it is not hard to understand why so many people are looking to the north for their next opportunity. Escalating house prices, struggling rental returns and below average rental yields are creating an impossible environment to obtain affordable housing.
It is well known that the north is home to lower value properties compared to the south, as the average property located in the north is priced at £130,667, compared to London’s staggering £484,173 average. The contrast in the two prices is one of the main reasons why those down South are turning their sights up North, not only due to the fact that they can obtain properties for a lower cost, but they can also purchase multiple properties in the north for the same value as just one in the south. Through purchasing multiple properties, this raises the opportunity to secure rental income from each property, maximising an investor’s returns and posing no question as to which region is the most lucrative.
Not only is the cost of living significantly cheaper up north, but the cost of living is also dramatically more inexpensive. This has led to an increase in affluent tenants that are comfortable spending more money on rental costs in the north compared to London whereby the whole cost of day to day living has skyrocketed over recent years.
Rental yields are one of the biggest factors an investor must consider, as ultimately this will dictate how lucrative an investment will be. Throughout London, soaring property prices teamed with decreasing rental costs have left the city with measly rental yields as low at 3.7%. London’s rental yields are a far cry from those in northern cities of Manchester and Liverpool that range from 5% up to 11%, with property investment company RW Invest producing some of the most sought-after properties in the UK and boasting yields as high as 9%.
Demand throughout both London and northern cities is strengthened by the incessant stream of students wishing to call their new city home. In the north, young professionals, students and graduates are choosing to retain in the city upon competition of their studies. These are some of the largest demographics that make up a thriving city, boosting the demand for high quality accommodation. Business opportunities in the north are also flourishing, creating the perfect set up for each student wishing to embark on a new job after university. With Manchester and Liverpool alone having a combined total of 155,000 students, these northern cities really do set the bar high, catering for the demand of well located, high quality property.