The Northern Powerhouse cities of Manchester, Leeds and Liverpool have been identified as global property investment hotspots.
According to the research from property investment company IP Global, which looked at some of the world’s leading property markets, the three UK cities could soon also be joined by Newcastle at the top of the investment league table.
Manchester continues to occupy top stop. House prices have seen a rapid growth with an 8.6% increase recorded from October 2016 to October 2017 and rents are forecast to increase 16.5% from 2018 to 2022.
Healthy rental yields of 5.6% gross were recorded at the end of 2017 too, driven by a large working age population and a 51% graduate retention rate from the city’s 105,000 students.
Liverpool has received significant investment, and the city has experienced faster economic growth than the rest of the UK and is also one of the UK’s best performing property investment locations with average rental yields of 6.2%.
Rents are on the up, with predictions of 17.6% growth from 2018 to 2021. House prices have also increased by 14% since 2015.
With the largest economy in the UK outside London, Leeds is increasingly very appealing for international investors. Rental growth is forecast at 18.8% between 2018 and 2021, which is being driven by a student population of 65,000 and key growth industries bringing 6% annual job growth in the private sector.
There is also a significant supply shortfall with 90,000 units to be delivered by 2021, but only 60,000 units in the development pipeline.
With willing renters and buyers Leeds is well-placed to grow and showing all signs of a strong future.
Newcastle with an economy driven by a thriving digital industry which accounts for 40% of all business and employs more than 27,000 people is also a powerful contestant.
The number of rental properties entering the market, over the last 13 years, has increased by almost 60%, with 22,000 homes and apartments now available in the city.
If development surpasses demand, IP Global predicts that Newcastle will shortly be joining that list of global property investment hotspots.