The top 5 areas to invest in the north of England

From established cities to rising powerhouses

As we all know, the north of England was once the centre of the industrial world. These days it’s the nightlife, growing business sectors and still tight-knit communities of major cities like Manchester, Leeds and Newcastle that make this part of the UK such an attractive place to invest in.

It’s also only a two hour train ride to London, Edinburgh and Glasgow from most northern counties, meaning in this new age of hybrid working people no longer feel the need to up sticks and relocate for the perfect job if they’re able to work remotely.

All these factors are key to the fact average rental yields in the North are now far higher than the South of England. On that note, here’s our thoughts on five great northern locations to invest in:

Manchester

Now regarded as the England’s second city and a major hub for international business, Manchester is seen as the number one player within the Northern Powerhouse. The figures are there to back that up, with 85% growth in employment over the last fifteen years as startups, established businesses and thousands of young professionals have made the city their home.

With low average property prices and rental yields of nearly 5.5%, as well as five-year capital growth of nearly 16% that’s only set to rise further – it’s no surprise Manchester is both a safe and prosperous bet for property investors.

Liverpool

Offering average rental yields of 5.3%, Liverpool is only slightly behind Manchester when it comes to potential returns for investors willing to put their money into Merseyside’s capital. In fact, Liverpool’s L1 and L7 postcodes are known to deliver yields of up to 10% on a regular basis.

With average property prices in the city currently only around the £185,000 mark (set to rise by 13.1% over the next five years), the relatively low investment required combined with projects like the £5.5billion Liverpool Waters scheme bringing 17,000 new jobs to the area makes Liverpool are strong investor option indeed.

Leeds

As one of the fastest-growing cities in the UK and with nearly 75% of its 800,000 residents renting, Leeds is looking more and more like an absolute win for property investors – even with rental yields slightly lower than Manchester and Liverpool at 5.1%.

Average property prices are around £270,000 and these are expected to grow by up to 15% over the next five years. This is in no small part thanks to Leeds’ booming economy, with many companies relocating here and Channel 4 opening their new HQ in the city. The rise in job growth has led to great demand for rental properties, with the rental market set to rise by 15% over the next five years.

Gateshead

With work underway on the £260million redevelopment of Gateshead Quayside, after years of deprivation and high levels of unemployment the people of Gateshead quite rightly believe the city is on the rise.

Asture investors feel the same. With achievable rental yields of 7% and some of the lowest property prices of all built-up Northern locations, Gateshead is expected to attract over 300,000 visitors a year alongside 2,000 new jobs as a result of the new Quayside site. Add to that its great transport links into Newcastle and it’s exciting times all round.

Stockton-on-Tees

Much like Gateshead, Stockton-on-Tees is an area of the north-east that for many years was left to suffer in the shadows of the bigger cities surrounding it. With an ambitious new waterfront development now in full flux and a recent council campaign aimed at cementing Stockton’s position as Tees Valley’s economic powerhouse, the emphasis on business is making companies and residents alike far more interested in keeping their money in the area. With an average property price of just over £150,000 and rental yield benefits of close to 9% on average, it’s a pretty solid investment option too.