The Northern Powerhouse strategy is creating more opportunities for economic growth, backed by billions of pounds in funding, which includes transport links within and between the North’s towns as well as high-speed train links to major cities across the UK from Leeds and Sheffield to Birmingham and London.
On top of this, there has been work done with the Northern areas to raise the education and skills levels, encouraging the Northern Powerhouse to be recognised as a worldwide opportunity for trade and investment. Not only does this mean there has been substantial growth in the area’s population, but it has also created more jobs and higher rental yields than the country’s capital.
Investing in a high yield property investment in the Northern Powerhouse could mean that you can easily get NET yields as high as 9% on a fully-managed student accommodation investment and even some buy-to-let investments.
Irrefutably, the property industry has seen the most impressive growth over the past four years. Due to the high property prices of the South and London, many professionals are looking to the North for employment opportunities and affordable housing comparably. Data from Hometrack revealed that the average house price in Manchester increased by 8.8% in 2017, with Leeds enjoying 7% growth.
With local economies thriving, unrivalled business innovation, and a tech boom, the number of jobs has sky rocketed across the Northern cities. Many university graduates who studied in the North are choosing to stay there to start their professional lives due to the countless job opportunities and many of the development plans across the region are creating new roles and apprenticeship schemes too. With attractive and affordable rental properties an additional perk, the North is retaining talent successfully.
Whether flocking from the south or remaining in the North post university, investors and developers are revelling in the growth of the property industry. Student and buy-to-let properties are the two major players attracting investment and West Yorkshire’s financial and cultural heart, Leeds, is one of the current hotspots, along with Manchester and Liverpool. Sheffield, Huddersfield and Preston are all emerging locations where average yields are rising. Furthermore, these areas suffer from a lack of appropriate student housing; a weakness that many investors are looking to capitalise on.