10 Sep

Buyers turning to Northern cities

Buyers turning to Northern cities

People hoping to step on to the property ladder are increasingly looking towards real estate in the North of England.

Research from Knight Frank reveals that many young professionals are able to afford homes in such regions, even though wages may be lower.

The study looked at affordability for those aged between 22 and 39 and found that many people starting out in their career are more likely to become property owners in the North compared to the South.

Durham was found to be the most affordable city when considering house prices compared to regional average earnings, followed by Nottingham and Liverpool.

Hastings was the most affordable location in the South, followed by Canterbury in Kent.

Grainne Gilmore, head of UK residential at Knight Frank, explained: "Our snapshot of some key UK cities shows that for young people keen to buy a home, their ability to climb onto the ladder is greater if they move to the North of England, even if their comparable earnings are more modest than those living in the South."

Separate research has also found that rental yields in the North are stronger and therefore buy-to-let landlords may want to examine the geographical makeup of their property portfolios to ensure the best returns.

The latest property index from BM Solutions shows that landlords could want to consider purchasing rental investments in the North West, North East and West Midlands because yields are an average of 6.4 per cent.

This is compared to 5.5 per cent in central London and 5.9 per cent in the South East and outer London.

Investment advisors The Mistoria Group believe that relocation of large organisations such as the BBC from the South to the North has generated a lot of interest and demand in recent months.

"The North West offers buy to let landlords a multitude of affordable properties that will give net returns of up to ten per cent,"  said Mish Liyanage, managing director of The Mistoria Group.

"By choosing the right property and the right agent, investors can sit back and after years of working for their money, can finally see their money working for them. So if investors want top yields, they should avoid London and head North."ADNFCR-1222-ID-801747612-ADNFCR

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