Newly released data from The Mistoria Group has revealed that that rent prices in the cities and towns in the Northern Powerhouse have risen by an average of 17%, with rental cash yields of 9% in Salford, 7% in Liverpool and Bolton.
This follows figures released by Homelet that show that rents in the North West are growing faster than any other region in the UK.
As rental growth in London continues to slow, values in the North East, North West, East Midlands, Scotland, Yorkshire & Humberside, Northern Ireland and Wales are all rising at a rate faster than the UK average.
Average rents across the UK rose by 1.8% in March 2020 year-on-year, with the average monthly rent sitting at £959 per month. When London is excluded, the average UK rental value was £793 in March 2020, up 1.4% on last year. The data also reveals that rents rose from last year in 9 out of 12 of the regions covered in the research.
The Mistoria Group, With a capital appreciation of 5%, investors are looking at total yields between 12-14%, which is extremely attractive. If you gear it the returns could be between 20% to as high as 35%.
The resilient property market in the North West is helped by the highly successful regeneration of the area which has bought new jobs, transport links and a range of large housing projects, proving the strength of the economy as a whole, in this region.
According to Mish Liyanage, Managing Director of The Mistoria Group, there is a growing demand for high-end HMO accommodation among young professionals and students across Salford, Bolton, Manchester and Liverpool areas
Mish comments: “BTL investors can buy a luxury HMOs in the North West from £120K upwards. The return on investment is very attractive too, with an average 13% yield (8% cash rental and 5% capital growth) “We have recently completed a full renovation of an HMO in Bolton with a high specification upgrade. The Mistoria Villa offers 15 luxury, en-suite bedrooms, complemented by well-equipped kitchens and comfortable communal social spaces. The stunning bedrooms, each with a unique contemporary design, are spacious and airy and all come fitted with desks, chairs, wardrobes, large, comfortable beds and modern furnishings.
“Offering gross rental income of £97,500 with a 17% yield, The Mistoria Villa has undergone a capital uplift of 69% following the renovation. This is a great example of the high yielding student and professional accommodation we can provide investors. through a comprehensive turnkey property solution, from property sourcing right up to taxation.”