As house prices plummet in London, Yorkshire is seen to be holding its own with prices projected to rise by 3.6 per cent over the next five years.
The Barclays UK property predictor has delivered the news for Yorkshire as uncertainty continues across much of the UK property market.
Ray Withers, CEO, Property Frontiers, said: “Steady, stable growth of this nature – in addition to the potential for decent rental yields – is precisely what investors are looking for from the UK property market right now.
“Property investment is about beating the Brexit uncertainty to find those pockets of the country where property markets are holding their nerve. That’s why investors are turning to northern counties like Yorkshire.”
Yorkshire’s bustling cities and towns, including Leeds, Sheffield, Bradford, Doncaster, Scarborough, Halifax and Wakefield all offer many employment opportunities and a great location for professionals and families looking to enjoy the urban lifestyle.
Bradford is the fourth largest metropolitan district in the UK, with an economy worth more than £8.3 billion. Outside of London, it is the UK’s fifth fastest growing city. Investors are increasingly being drawn to its hotel sector, with developments such as Fabric, in the city centre, offering a low entry point (rooms from £65,000) and yields of 10 per cent NET per annum for up to 10 years. Bradford’s economy is supporting exceptional five per cent annual growth in hotel revenues. Occupancy is on a gentle incline, while rates are steeply rising, according to Armstrong Watson.
Meanwhile, investors who prefer apartments have been excited by Danum House, just a two-minute walk from Doncaster train station. One bedroom apartments are available from as little as £83,000 thanks to the exceptional value to be had in this Yorkshire city. Yields of seven per cent per annum are assured for five years in this popular, art deco style department store conversion.
Mr Withers added: “One of Yorkshire’s attractions is the range of investments and locations that it offers. This is truly a county with a property to suit every budget – hence it’s rapidly growing status as a top UK investment honeypot.”
Over in the much-loved seaside resort of Scarborough, investors can buy into the next chapter in the history of the majestic Harland Hotel. The building oozes traditional charm, just as one would hope for from a hotel overlooking the bay of one of the UK’s most traditional seaside hotspots.
The luxurious rooms are available for as little as £60,000, with ongoing income of 10 per cent NET over 10 years proving a strong lure for investors looking to beat Brexit with strong returns.
The latest Yorkshire development set to tempt investors will be Martins Mill in Halifax. The 60 apartments, due to hit the market imminently and exclusively through Property Frontiers will breathe new life into the former textile mill, which dates back to the 1800s. The development will be the latest in a long line of Yorkshire successes for the team.
Mr Withers said: “Apartments at Hebble Wharf in Wakefield were particularly well received back in 2015 and highlighted the investment appetite for this part of the world. With Brexit creating uncertainty in London and the surrounding area, investors are increasingly looking to areas like Yorkshire for longer-term stability. As such, we expect investment in this county to continue to expand.”
London’s house prices are falling at a pace not seen since 2009, according to the latest figures from Acadata and LSL Property Services, with September prices dropping by 2.7 per cent. Meanwhile, Hometrack data reveals that property turnover in the capital has plummeted by 17 per cent since 2015.