North Of England Offers Cheaper Buy Than Rent

Buying A House to Rent Out

The strongest growth in property markets can be seen in the north in Northern Ireland and Scotland, where the sales were strong in the past month as per RICS. But the reports also find that rents continue to increase in some of the key regions.

Modest growth in demand and the buy-to-let property taxation led to growth in selling, where the demand for rents grew, and supply fell, a reason for the rise in rents. The data by Reapit states the rental demand grew 13.3 per cent in the last year, while the stock was down by 6.9 per cent. The reports by the software company found at least one in ten landlords are looking for a sale.

Northmost Affordable – Buying and Renting Comparison

The data of Zoopla and Hometrack was analysed by The Telegraph, and it released a comparison of renting and buying costs in property markets of the UK that shows for a two-bedroom property with a 1.89 per cent rate, a loan-to-value of 85 per cent was taken for over 25 years. 

Other points are- 

• The north is a more affordable and lucrative real estate market, in comparison to the capital city where the difference between buying and renting average price in Leeds is about 20.1 per cent – where rent costs £623 approximately and buying monthly cost, on an average, is £498. 

• The city continues to grow with the investment of £350 million on development projects and 750 new homes where more than 10,000 people could live and work.  

• IPPR reports find that northern regions may create 46,000 green jobs by 2030, and 28,000 carbon-based jobs may be lost during this time. The region is also growing in terms of clean energy.

• Manchester difference in buying and renting is 28.4 per cent, where the renting cost is approx. £725, and buying cost comes to £519. One of the lowest buying costs can be seen in Liverpool, where the difference between buying and renting is 40.6 per cent – where buying cost, on average, is £323 and rent is £543.  

• New construction projects are planned for Liverpool, where the city is expected to have 2,000 buy new homes and 1,000 new jobs.

There are other growing regions such as Birmingham where the average buying costs are approx. £512 and rent is £663. Rental demand continues to grow in Birmingham property markets as the city is expected to host the commonwealth games in 2022, leading to the new development projects of at least 3000 homes.

Best Cities in Terms of Quality of Life

Regarding the quality of life, job prospects and average salary – Leeds and Edinburg stand out. The cost of commuting is less in cities like Nottingham compared to their average salaries. Sunderland has been listed as the best where the house prices and rentals are low, the commuting cost is low, and the quality of life is high.

The RICS report on the supply pipeline finds almost all regions suffered a decline in the stock, which remained low during this time, and the appraisals were also down compared to last year.

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