However, when it comes to average prices, the north-south divide is diminishing. Yes, homes in the south of England are generally still more expensive, but the gap is falling. More expensive property can lower the rental yield, which is bad news for landlords, but increasing house prices in the north bring a benefit to landlords.
Rising prices impacts property and rental markets
When property prices rise, more people find themselves unable to afford to buy a property. Therefore, the demand for rental property increases. Also, the demand and ability to purchase houses falls, so there is a growing opportunity for investors to buy property, and then profit from these houses. The diminishing gap between north and south prices has been highlighted in a study undertaken by Howsy.
The CEO and Founder of the company, Calum Brannan, spoke about the figures found in their research, saying; “The inflation of UK property prices is an issue pretty much the length and breadth of the UK but it’s interesting to see how the market landscape has changed over the last decade, and where has now exceeded the £200,000 mark.”
Landlords need to capitalise on opportunities
While people bring priced out of the property market isn’t positive news in general, it creates opportunities for investors. Calum Brannan continued by saying; “Not only does it show the evolution of the UK housing market, but highlights the pressure being put on the UK rental market as a result, with more and more of us being priced out of homeownership by this tide of unaffordability and remaining reliant on the letting sector in order to put a roof over our heads. There’s a very real chance we will continue to see this pocket stretch even further north and so we predict that the need to the UK rental sector will only grow greater as time marches on.”
The increasing opportunities available in the north of the country means a growing number of landlords and investors are looking at areas like Greater Manchester. While the heart of Manchester appeals to many people, there is a great deal to be said for getting out of the city.
Stockport is an ideal location for investors looking to be close to Manchester, but who would prefer to avoid the student and young professional market closely associated with the city centre. Strong transport links mean a daily commute between Stockport and Manchester is simple, but the town centre has a great deal going for it. Therefore, there is no need for Stockport residents to venture far, no matter what they are looking for, and this makes Stockport a fantastic location for homeowners and tenants.
With convenient transport links to the centre of Manchester, and significant developments taking place, Stockport is the ideal place to buy, live or invest. As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html