The smart money's investing Up North, says expert
Friday, 19 August 2011 3:20 PM
The North of England is gaining greater interest from experienced property investors tired of London's sky-high prices, according to a leading investment firm.
Platinum Portfolio Builder claims that despite a boom in buy-to-let in the capital, overseas investors have pushed up asking prices and led many to look further afield.
Nick Carlile, founding partner of Platinum, said: "Even though a 25 per cent deposit is still required, this is more achievable on a £100,000 property in the North than on, say, a £250,000 property in the South, where prices are still considerably higher."
According to Carlile, experienced investors recognise that stagnant house prices and high demand for rental properties from those who can't afford to make a purchase are making investment up North more accessible, with greater security and a good return.
"The North, versus the South, offers much greater opportunity to buy more than one property, building a portfolio over a faster period of time. If managed correctly, it has the potential to return much higher returns than in the South where yields are often half what is achieved in the North."
Platinum has averaged gross yield of 8.9 per cent in the last 12 months in the North of England, Carlile said.
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