Tailored for expats looking for strategic investment beyond London, featuring local trends and yields.
While most people think of UK property investment, London is the obvious choice that springs to mind. However, in recent times, Northern UK cities like Manchester, Leeds, Liverpool, Sheffield and Newcastle have been the top choices for expat investors. They offer lower property prices, higher rental yields, and phenomenal long-term growth opportunities — all reasons why they are at the top list of anyone living abroad who wishes to invest wisely.
Expat Buy-to-Let Investors Head North
You may already know, as an expat or foreign national, how profitable a UK Buy-to-Let property can be. But the location is literally everything. While the London market may be expensive and very competitive, many of the cities up north are very good at striking that right balance between cost and good demand for rental purposes.
The following is a closer look at why expat investors are drawn to Northern UK cities:
1. Lower Property Prices Mean Better Entry Points
One of the best advantages of investing in the North of the UK is that it is a lot more affordable. Compared to London, Northern cities are much cheaper for property investment. For instance, the average Manchester house price is around £250,000, compared to over £500,000 in London. Lower prices also mean lower deposit requirements, allowing capital to be invested in multiple properties rather than just one.
2. Higher Rental Yields
Rental yield is often the most important thing to consider when buying a buy-to-let property. Northern cities are likely to have higher rental yields than London or properties in the South East of the England. Yields in Liverpool and Newcastle, for instance, can be up to 6-8% or even higher, depending upon the location and property type.
This renders the North of England an attractive destination for expats or foreign nationals seeking to receive a good rental return while living abroad. Whether renting out to students, professionals, or families, rental demand across all markets is always high within these locations.
3. Regeneration and Infrastructure Investment
A major reason that Northern cities are becoming increasingly popular is because there is significant investment in regeneration schemes and infrastructure initiatives. Government and private developers are investing billions of pounds into developments such as:
- Manchester – initiatives such as MediaCity UK in Salford and the Northern Gateway.
- Leeds – welcoming financial services companies and enjoying major city centre regeneration.
- Liverpool – has large waterfront schemes and enhanced transport links.
- Sheffield and Newcastle – with improved universities and tech business centres.
These developments are stimulating local economies, attracting new employment and stimulating demand for rental housing – which are some of the best cities to invest in property UK, making it excellent news for expat property investors.
4. Strong Rental Demand
University Cities such as Leeds, Manchester and Sheffield have enormous student populations. This generates steady rental demand, particularly for small flats and shared houses – such as HMOs (Houses of Multiple Occupancy). Some of these Cities also have increasing numbers of young professionals who prefer to rent nearer city centres.
This steady rental demand makes it easier to find tenants, push rental prices higher and keep your property always let-out – a significant advantage for any expat investor.
5. Capital Growth Potential
Though house prices in London have come to a relative standstill in recent years, the North of England is certainly on the rise. Cities like Manchester have seen house price growth outpace London, with better long-term return on investment.
The gap between the North and South property prices is gradually reducing over time, so if you buy in the North today, there’s a high likelihood that the value of your home will increase in the long term.
6. More Expatriate Support than Ever Before
A few years ago, securing a UK mortgage might well have been problematic if you were an expat. Nowadays however, this is not so. Expats in need of assistance today discover they have numerous options. The reality is that there are now specialist UK mortgage brokers that are dedicated to working with expats and specialist mortgage lenders. These expat mortgage brokers are able to match their expat clients with the best lenders for their specific circumstances and provide them with advice and support every step of the way through the application process.
Whether you’re paid in foreign currency, working abroad for the long term, or simply planning a return to the UK at some point in the future, expert mortgage brokers will certainly help make the process smooth and stress-free.
Buying a home now from expat mortgage lenders uk, even if you’re renting it out, could be a smart way to plan for your financial future.
Best Places to Invest in Property UK – North Edition
Some of the best options to consider if you look North of England are:
1. Manchester
The Northern Powerhouse. Perfect for both student and professional rentals. High capital growth and infrastructure investment.
2. Liverpool
Cheap properties from expat mortgages uk, high returns and an economy on the rise. Excellent prospects for long-term growth.
3. Leeds
Thriving finance and legal city with a massive student base. High demand for rentals.
4. Sheffield
Home to world-class universities and expanding tech firms. Good yields and value.
5. Newcastle
Perfect for students and professionals alike. Strong community and investment potential.
How to Get Started as an Expat Investor
If you are an expat looking to delve into property investment in the UK, the following are some easy-to-follow steps:
- Do your research – find out about the local market and determine which city is best suited to meet your investment objectives.
- Talk to a specialist – work with a reputable expat mortgage broker UK who will get to know you and your specific personal circumstances and investment criteria.
- Be in control financially – check out your credit score, income and deposit options.
- Secure your mortgage – think about fixing an interest rate early to protect against interest rate increases.
- Make the right purchase – consider what type of tenants you wish to let to and choose the most appropriate area for them.
Thinking of Investing in Northern UK Property as an Expat?
Explore high rental yield Cities like Manchester and Leeds with expert expat mortgage support.
Contact us today to secure your future investment in the UK property market.