by Jan Gallagher, LendInvest BDM for Northern England
This week we are focusing on the North of England and the opportunities it offers to property investors, whether it be for short-term lending or Buy-to-Let.
Here our BDM for the region, Jan Gallagher, outlines the opportunities for investors. If you want to discuss a deal with her please email: [email protected], connect with her on LinkedIn or call her on +44 (0)75 0363 2686.
- Rent prices are growing in Northern Powerhouse towns and cities, as they slow in London
As more attention has been paid to the region, with investment seeing more businesses and larger companies move here, we have seen an increase in rent prices outstripping the increases in London, which was previously the most valuable place for landlords to expand their portfolio.
Values in the North East, North West and Yorkshire & Humberside are well ahead of the UK average.
Now that we are seeing more rental growth in our towns and cities it is a good time for landlords to get in early while overall property prices remain lower than the national average.
- University towns (Durham, Manchester, Liverpool) offers student buy-to-let investments and development opportunities
While students have been sent home as a result of Covid-19, the expectation is that when things can return to normal they will, and the region has some of the country’s biggest and most popular universities
The need for student housing creates opportunities for developers, borrowers who purchase land for planning gain and buy-to-let landlords.
- The rental market could be more resilient than house prices
A report from Savills analysed how residential rents behaved during downturns including the 2008 financial crisis.
It found that house prices fluctuate more widely than residential rents, because tenant demand remains consistent even when buyer demand does not. Looking post Covid-19, it predicted rental growth will be 13.6% between 2020 and 2024, only a slight dip from the 15.4% it was forecasting pre-crisis.
Combine this with the increased demand to live in the region and lower cost of housing, the right investor can find plenty of success in the rental market.
- Auction houses
Auction houses remained open during the lockdown and we have seen a lot of appetite in the region from investors looking to buy cheap properties to refurbish for sale or rent.
We’ve been busy lending on these properties as more and more investors are seeing these opportunities. Combined with growing rental yields, auction finance and exiting onto Buy-to-Let finance is a low-cost way for landlords to expand their portfolios.
- Lenders considering quirkier projects
Lenders with greater appetites and more expertise are considering quirkier projects even with the current lockdown ending and are making improvements to their process to better support clients in the region.
For example, I have direct access to underwriters to discuss quirky cases prior to application so brokers know their client can work with us before taking the case forward, saving them, and their borrowers, time.
For everything you need to know about your next bridging, development exit or Buy-to-Let deal – including LTVs up to 75% across our range – visit our intermediaries product page.
Alternatively you can email Jan on [email protected].