International Investing: What Can We Expect In 2018 For Property Investments?

Karen Blanchette

Property Investment – North West UK

Expectations of 2018 in the property investment market vary depending on who you’re informed by. For some, the uncertainty of Brexit and the increase of tax burdens for landlords don’t bode well. But for others, 2018 is the year that those who are serious about investing in rental properties head out from the London conurbations and look up, look ahead, and look to the North West.

Landlords had it tough last year. Tied up in a raft of regulations, higher taxation, stamp duty, the loss of wear-and-tear allowance: now landlords can only claim for actual costs spent on repairs, rather than a blanket 10% reduction for wear and tear.

These issues, and plenty more in 2017, made property investors question if ROI was still a term that could be used in this context. With struggles come opportunities in the property investment market and there are plenty of new locations to utilize. This is why many investors, who in the past may have chosen London and obvious places in the South East, have now set their sights on areas like Liverpool, Manchester and Leeds for investing in rentals.

North West Area For Success In Rentals

Early investors in the North West area have reaped what they have sowed. For many North West Landlords – 2017 was a profitable year. And this is expected to be even better for 2018. The high demand in this part of the country is for rental properties, and those within walking distance of the city centre have scored highly.

Wage inflation in 2017 may have had some effect, but nowhere near the impact that aparthotel schemes have had. These schemes generate approximately 15% additional rent per week, pushing up rental values in Manchester.

Liverpool, the land of the Royal Liver Building, is also enjoying a boom in property prices and is seen as a real property hub for investors. The legacy of its year as City of Culture a decade ago, put the city on the map internationally and ten years on Liverpool continues to attract investment and development.

Best Buy-to-Let UK Areas

Manchester tops the bill for the best buy-to-let area. Research by LendInvest shows the 10 best buy-to-let areas in the UK for 2018 are:

Manchester
Colchester
Luton
Rochester
Southend-on-sea
Hull
Romford
Norwich
Leicester
Ipswich

Top 10 Rental Price Increase Areas

Once again, Manchester is top of the charts in a LendInvest survey, showing the top 10 areas for rental price increase in the UK

Area Rental Price Increase

Manchester 5.76%

Leicester 5.30%

Luton 5.26%

Rochester 5.12%

Cardiff 5.00%

Brighton 4.61%

Swansea 4.47%

Birmingham 4.29%

Newcastle Upon Tyne 4.18%

Truro 4.13%

Factors Of Investment To Keep an Eye On

Property investment commentators have continued high hopes for the North West. 2017 was a great year for property investors in this part of the county, whether home ownership or buy-to-let, the North West’s house price growth was significant.

The market share of buy-to-let investors has been dominated by London for many years, but the rest of the country is now beginning to catch up – particularly the North-West. If you’re thinking of making a buy to let investment, click here to view the RWinvest buy to let guide.

There was a 3.1% rise in the number of buy-to-let mortgage applications from the North West of England in 2017. Add to this, the Government’s investment through the Northern Powerhouse scheme, there is tangible evidence of significant change in the region. All of which will have a knock-on effect on an already incredible buoyant property market.