Grim up north? Not for property investment
It's grim up north...it was once claimed...but not if you are thinking of investing in the buy-to-rent market.
That is the view of property blogger Scott Hendry, who says splashing the cash in London is not always a viable option for some and that the north of England offers some attractive propositions when buying a second home.
He says the rise in stamp duty has sparked the north/south property divide once again and while the capital is appealing, not everyone can afford the move.
He said: "Whilst London has always held its own for property investment thanks to high rental yields and strong capital gains, the continuous rising property prices, coupled with this new 3% increase, is pricing some landlords out of the market in the capital.
"This change is a chance for investors to reassess where they are looking for properties, with the north of England looking like a great place to start."
In Manchester, for example, he says foreign investment projects has risen by 118% in the last two years but says UK investors in London 'are still not taking full advantage of the opportunities on offer'.
The much-publicised Government push to create the 'Northern Powerhouse' has put the spotlight firmly on the north, and while it may be regarded as desperate rhetoric from MPs, it can't be denied that it has made overseas investors sit up and take note.
He also says transport links have hugely improved in recent years, boosted by the HS2 project's first phase which is planned for next year and will link major cities.
Mr Hendry added: "Investors need to look more at the affordability of property in the north.
"Strong capital growth is still very much available so don’t use this as a reason not to explore properties outside of London."