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For UK expat and foreign national investors looking to secure solid returns from UK property investment, the message is becoming increasingly clear: head North. From rising rental yields to below-average property prices and transformational regeneration projects, the North of England is proving to be the strongest performer for investors seeking sustainable income and capital growth.
A Strategic Shift in Buy-to-Let Investment.
Recent research from Hamptons has highlighted a significant shift in investor behaviour. Almost 40% of buy-to-let purchases in the first four months of this year were made in the Midlands and North of England. This is up from just 24% in 2007 and reflects changes in both market conditions and investor priorities. With rising mortgage rates, changing tax rules and regional affordability gaps widening, landlords are increasingly looking to the North to maximise returns.
Why the North is Leading the Way.
‘There are several reasons the North of England is proving so attractive to investors’ says Stuart Marshall, CEO of Liquid Expat Mortgages. ‘The first and most obvious reason is the strong rental yields offered by the North. Northern regions have consistently outperformed the South for rental yields, with areas like the North East offering average gross yields of 9.3%, while the North West follows closely with 8.2%. Add to this the lower purchase price of properties in the North and it is a compelling proposition for UK expat and foreign national investors. The average buy-to-let property in the North costs £150,480 – nearly half the cost of the average in the South (£292,240). These lower property prices also translate into a substantial saving on stamp duty – approximately £11,000 on average.’
High tenant demand is also common across many towns and cities in the North. ‘Historically, it’s been common for Northern cities to have strong tenant demand but it’s increasingly common for nearby towns, such as Stockport and Salford, to see record levels of tenant demand too. As these towns receive more investment and development, they are becoming not only attractive commuter locations, but also compelling alternatives to the city centre for tenants. Because of this, areas like Stockport and Salford have seen tenant enquiries far exceeding national averages.’
Manchester: A Northern Powerhouse for Property Investment.
Manchester continues to top the list for high-yielding property investment locations, delivering the highest average rental yield of any city in the UK at 6.35%, according to a report from property management portal Cohab. It’s also been named the best city for investment in England by Colliers, thanks to its £80 billion economy, strong infrastructure, and a growing population of professionals and students.
The city’s property market is further bolstered by an upcoming £10 billion investment plan – the ‘Growth and Prevention Delivery Plan’ – aimed at regenerating all 10 boroughs of Greater Manchester over the next decade. This will include major transport, housing and innovation projects, driving further growth and demand for rental homes.
Stockport: A Fast-Rising Rental Hotspot.
Just outside Manchester, Stockport is quickly becoming one of the most sought-after investment locations in the country. Thanks to its own regeneration programme, which is transforming the town centre and boosting job prospects, Stockport saw a 16.1% annual rise in average rents – the second highest in the UK. With direct rail links to Manchester in just 10 minutes and more affordable rental prices than the city centre, Stockport is now a top choice for young professionals and commuters. This has also made Stockport an excellent strategic choice for property investors seeking high yields and future capital growth.
Salford and Beyond: Where Returns Outperform Expectations.
Salford, another Greater Manchester borough, has experienced an eye-watering 72.4% rent increase over the past decade – the highest in England. Other boroughs such as Trafford, Bury and Tameside are also seeing rental growth rates of more than 60% over the same period. These figures reflect not just soaring tenant demand, but the strength of the wider economy in the North West. Greater Manchester is now the largest city region economy outside London and has experienced significant job growth and population increases. This secures the future of the region, fuelling a sustained need for high-quality rental accommodation. For UK expat and foreign national investors who invest in quality buy-to-let properties, they will stand to make strong returns for many years to come.
The Bigger Picture: Long-Term Investment Potential.
As London and the South East continue to see yield compression and slower capital growth, the North of England offers a compelling alternative for buy-to-let investors. Many landlords are now rethinking their portfolios, choosing to diversify into high-yield, high-demand regions like Greater Manchester, Yorkshire and the Humber, and the North East. Moreover, more than 65% of London-based investors are now purchasing buy-to-let properties outside the capital. This is up from 41% a decade ago and reflects a broader investor awareness of the opportunities presented by regional markets.
Liquid Expat Mortgages specialise in helping British expats and foreign nationals access competitive buy-to-let mortgage products tailored to their unique circumstances. Whether it’s UK expat and foreign national buyers purchasing their first investment property or expanding an existing portfolio, Liquid Expat Mortgages’ expert advisers can support them through every stage of the process – from finding the right mortgage to choosing the right location. With access to a wide panel of lenders and exclusive expat and foreign national mortgage products, Liquid Expat Mortgages are ideally placed to help overseas investors tap into the North’s growing investment potential.
Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
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