The Yorkshire buy to let market has drifted in and out of favour over the years, once a familiar dinner party topic, with questions not of ‘have you got a buy to let property?’ but ‘how many buy to let properties do you have?’ demonstrating the extent of investors’ faith in the market. However as the financial crisis took hold of the UK, with the North East experiencing one of the nation’s more turbulent regional economies, people began to enquire whether buy to let properties were worth holding at all. Investment property trends are often driven by the economic climate, though it would seem that the Yorkshire buy to let market has made a comeback as a result of the growing number of people looking to rent property in the area as opposed to purchasing.
Investors are being lured to the Yorkshire buy to let market due to the exciting returns that their investment can produce. Yields across the UK are improving consistently and Yorkshire is amongst the most prominent regions. LSL Property Services’ most recent figures show that rental yields for Yorkshire and The Humberside were 6.6% in April, well above the sturdy national average of 5.3%. However it is not all good news, as rent arrears for the UK neared £300 million in April, clearly, managing tenants as well as the property itself is a high priority and does not come without its dangers.
When it comes to investment, there is always more than one option available and the Yorkshire buy to let market is no exception. Decisions need to be made to ensure that the property will provide the best return possible by considering whether a house or an apartment would be more suitable, whether an old or new property would be easier to maintain, or whether a village, town or city centre would provide the best location. This list of considerations is by no means exhaustive and is not an area to enter without consulting an expert.
Yorkshire offers an array of rental hotspots, with Harrogate and York both offering attractive investment yields, whilst the entire North East region is scattered with good buy to let investment opportunities. Contact Garrington to find out more about how we can help you join the Yorkshire buy to let market.