The property market in Northern England has been gaining significant traction, with first-time investors leading the charge. According to a recent report by Fleet Mortgages, 25% of mortgage applications for properties in the North East during Q4 came from first-time landlords, compared to just 4% in the South West.
With lower property prices and higher yields on offer, Northern England has become an attractive location for those looking to take their first steps into property investment.
Northern Property Appeal to First-Time Investors
Northern England has always offered unique advantages to first-time property investors, and it would seem based on the findings of this report, that this trend will only continue to increase:
Affordable Property Prices
The North East, for example, boasts an average loan amount of just £77,000 per mortgage, making it easier for new investors to enter the market. Lower entry costs reduce financial barriers, encouraging first-time landlords to start building their portfolios.
Strong Rental Yields
Rental yields in the North are some of the highest in the country. The North East leads with an average rental yield of 9.3%, followed by Yorkshire & Humberside at 8.6%, and the North West at 8.3%. These figures far exceed those reported in Greater London (5.8%) and the South East (6.4%), highlighting the financial viability of investing in the North.
Investors with limited budgets can make their money go further in these regions, making them particularly attractive for those just starting out.
Rising Supply and Demand in the Private Rented Sector
A shortage of rental stock combined with affordability has led to increasing demand for private rentals. With rental prices relatively stable, the north offers attractive conditions for landlords seeking consistent returns.
Long-Term Growth Potential
Many Northern cities are undergoing regeneration projects, improving infrastructure, and attracting new businesses – and investors, not just based in the UK, are becoming much more aware of the variety of cities and surrounding towns available to them outside of London – such as Manchester, Liverpool, Leeds, Birmingham and Sheffield.
Property Sourcers Can Take Advantage of This Trend
The rise of first-time investors in Northern England creates opportunities for property sourcers and deal packagers across all areas of the country:
For Sourcers or Deal Packagers in the North
Now is the time to shine. With a growing number of investors flocking to the region, sourcers based in the North have the advantage of local market knowledge and access to a variety of properties. Positioning your services with a focus on Northern opportunities could attract a wide array of clients.
For Sourcers or Deal Packagers in the South
If you’re based in the South but finding opportunities limited, now is a great time to explore co-sourcing partnerships with Northern sourcers (please make sure both you and them are fully compliant, or ideally NAPSA-approved). By tapping into your existing connections with investors and combining them with access to property deals through Northern agents, you can create win-win solutions for all parties involved.
Property Investors: Search Northern-Based Sourcing Businesses
We have sourcing agents and deal packagers covering a range of strategies – from BTL, Serviced Accommodation, HMOs, Commercial, Flips, and Rent to Rent – across all different regions in the North of England.
Click below to take a look at agents operating in your interested area:
NAPSA-approved Members, SPH Property Sourcing recently shared insights with us on their specialist area of Crewe and Stoke-on-Trent. You can read more here.
We don’t charge investors a penny to search, contact or complete a deal with any of our Professional Sourcing Agents. Instead, we want investors to come to NAPSA to build long-lasting relationships with credible, professional and compliant businesses.
For more information or questions, please message our team at [email protected]
