Two areas that saw over 9% rental growth
Property investors looking to profit from the buy-to-let market may want to cast an eye on the rental prices in the north of the country. According to the Q3 stats from Rightmove, Bury and Newcastle upon Tyne saw a massive annual increase in rental prices of 9.4% and 9.1% respectively. Even though the Yorkshire and Humberside regions combined only seeing a 4.2% increase in the same time period, these two areas could be whetting the appetite of investors.
What makes Bury and Newcastle desirable
Due to its easy connection to central Manchester, Bury is an ideal location for young families and professionals that wish to live in a quieter area, yet still benefit from big city amenities. Families with children will be buoyed to know that Bury is home to several revered schools and colleges including Bury Grammar School that was established in 1634. For the professionals wanting to commute to central Manchester, a zone 1 to 4 season ticket for the tram would set you back just £1,100 per year. The average rental for a 2 bed in Bury is £630 pcm.
Newcastle upon Tyne is a vibrant city in the North East of England. It boasts cultural and historical sites as well as a bustling nightlife. Its wide range of new and historical buildings have provided a wide range of property styles to attract both students and young professionals. Landlords looking to cash in on buy-to-let or HMO properties will benefit from the hoards of students that populate both Newcastle and Northumbria Universities. For young families, there are a number of ‘outstanding’ rated schools and numerous well-regarded independent schools. The average rental for a 2 bed in Newcastle is £692 pcm.
Continued growth could lead to opportunities
In addition to the >9% annual growth that these areas saw over the last 12 months, analysts are predicting a ‘Boris Bounce’ for the UK property market in 2020. Following such a decisive election victory and a clear path to Brexit, many believe that confidence from both buyers and sellers will be restored. Many experts in the field are forecasting UK property prices to rise by 2% in the coming year.
Bridging loans offer property investors a fast and flexible way to take advantage property investments as they appear on the market. The speed that they can be agreed upon and funded allows both traditional and auction purchases to be made. Terms can range from between 1 – 24 months, so this is an ideal option to capitalise on investments before undertaking the long process of securing long-term financing. To make things even easier, you won’t have to pay any early repayment charges or exit fees should you wish to end the loan ahead of time.
If you would like to receive more information on how a bridging loan could be your ideal solution for short-term financing, simply call our team on 0203 051 2331 or fill out our contact form to get a call back.