RICS have predicted that UK house prices will see a 3% rise across 2015. These suggested rises could be due to the recent changes in stamp duty along with lack of supply on the property market, which is a reoccurring trend in the UK.
The survey has also suggested that there will be a 2% rise in rents rates across 2015. Rental market growth was slow at the beginning of 2014 due to the newly launched Help-to-Buy scheme however throughout the year the market has grown rapidly and is now at an all time high.
The Help-to-Buy scheme is still available however many potential home-owners are choosing renting a property as it is a more affordable option and is not at risk of rising interest rates as mortgage payments are.
Areas such as the North West are seeing rises in rental rates because of recent investments in its major cities such as Manchester and Liverpool. These developments are helping the buy-to-let market to expand.
“Manchester in particular, has seen steady house price increases alongside major economic investment into schemes such as MediaCityUK, Manchester Airport and the Manchester Metrolink system. The recent launch of direct flights between Manchester and China coupled with the One North transport initiative means that the region’s appeal will only grow, which spells further good news for capital growth in the North West and buy to let investors.” – Graham Davidson, Managing Director of Sequre Property Investments commented on the growth of Manchester and its surrounding areas such as Salford.
The North West is also a popular area for students. With universities in Preston, Liverpool, Salford and Manchester the area’s student property investment market is attractive for investors.
HMO properties are one of Mistoria Group’s most favoured investments by clients. HMOs (houses of multiple occupation) are able to generate average yields of 12%-18% pa which are very attractive to investors. The student property investment market is booming due to increasing numbers of students applying for university each year, demand is constantly increasing making it ideal for those who wish to continue to expand their investment portfolio.
Mistoria Group are property investment specialists, offering a range of HMO investments around the North West, for more information on the services we offer call us on 0800 500 3015 or email us at firstname.lastname@example.org.