And the winner is…It’s never black or white and there is constant debate about the benefits of yield v long term capital appreciation in the North vs South of England. So, with that in mind we’ve put together our first battle for you to decide. Both sides put together a compelling case of where you should next invest as a property investor – be it first time on the market or experienced landlord.
In the northern Corner we have James Forrester from Barrows and Forrester
“The much-anticipated levelling up investment from the government in the north will undoubtably create investment, jobs and sustainable growth. It’s also not just the major cities that are doing well. It’s the suburbs that have also seen the growth. Newcastle is an up-and-coming city to take note of and Birmingham has seen growth of 11.5% in the last 12 months. In addition to that it is most definitely a landlord’s market – Lack of stock has also seen huge increase in rental yields. Birmingham has the commonwealth games coming up as well. All factors that contribute towards making the north a great place for investment.”
“Oh, and with lower house princes it makes it much easier to get a foot in the ladder and also diversify your risk with multiple properties. Also don’t forget stamp duty – that barrier to investment is massively lower in the north with the lower house prices”
All good points and James makes a compelling case.
However, in the southern corner we have Marc van Grundherr from Benham and Reeves
“In London, rents have increased by up to 30% on selected properties due to a lack of supply In addition, house prices have increased by 9.6% in the North of England v 10.2% South”
So that’s higher yield increase and house price increase.
Also, as Marc points out “London will always be London – there will always be interest from both tenants and investors with its range of cultural benefits, transport links and employment opportunities” In addition Marc anticipates rent will continue to increase by 5-6% in the next year.
One thing both sides agree on is long term property investment is absolutely the best for inflation control. It shouldn’t really matter whether it’s the North or South – over the long term it’s a relatively risk-free investment compared to the many other opportunities out there.
So no clear winner and both have their benefits
So go for it, diversify your portfolio if you can (why not have a foot in both camps) and head to the property investor show to get more tips and hints from industry experts. It’s on the 1st and 2nd of April 2022 at London ExCel.