Successful buy to let property investment can often depend on location – North, South, or the Midlands.
The latest research from peer to peer lending platform, Sourced Capital, has looked at where’s best to invest in bricks and mortar across the north, south and midlands regions of Britain.
Location can be vital when investing in property and regional influences can make the difference between profit and loss, so Sourced Capital has dissected the market based on the value of a property and the total value sold, as well as demand for these properties based on the volume of transactions.
The North-South divide is a very contentious issue but with the Midlands becoming a property powerhouse in its own right over the last few years, Sourced Capital totted up the totals based on: –
- The North including the North West, North East, Yorkshire and the Humber and Scotland.
- The South including the East of England, London, the South East and South West.
- The Midlands including the East and West Midlands and Wales.
The figures show that despite much talk of the Northern Powerhouse, the South remains in pole position where the property market is concerned. In the last 12 months, house prices across the South have averaged £335,567 with £132.7 billion worth of property sold across 401,606 transactions.
The North doesn’t trail by much when it comes to the churn of property sales though, with 333,262 transactions over the last month, although the value of these properties is significantly lower with the average property going for £152,276 with a total value of £52.1 billion.
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The Midlands and Wales accounted for the lowest level of transactions at 203,586 and while total value also trailed at just £38,4 billion, the average house price does exceed that of the North at £185,241.
Stephen Moss, founder and MD of Sourced Capital, commented: ‘When it comes to the sheer volume of transactions and the value of bricks and mortar, the South continues to lead the way and while this is largely driven by London, each region provides an attractive proposition when it comes to investing from both a demand and value point of view.
‘However, the North isn’t far behind when it comes to demand for housing and with the exception of the North East, it’s fair to say the property market across the majority of the North and even parts of the Midlands can go toe to toe with the South on transaction volume.’
Source: Residential Landlord