Best Price Guide: Are House Prices Dropping?

Investing in the North of England

It is no secret that the South of England is one of the most expensive places to live in the UK. The South East in particular is the only region to have experienced a gentle decrease in rental yields, dropping by 0.2% over the year to now sit at an average of 4%. London itself sits with an average of 4.7% for rental yields and Yorkshire and the Humber 4.9%. It is the North West which currently offers the best yields in England at 5.5% and the best-performing yield increase of 0.34% from over the year.

The North West property market is resilient and shows remarkable promise for such. House prices currently average at £211,790 and rent at £887.73pcm. The region is ranked third on the UK’s House Price Index for the rising value of properties, seeing a rise of 2.7% between May 2022 and May 2023 compared to the average 1.7% increase. Even with house prices dropping, the North West is expected to continue its resilience through the current UK mortgage rates, thanks to high demand and the best rental yields in England.

£156,300 Average House Price | 5.4% Yields

Liverpool

Property prices in Liverpool are some of the lowest in the country, but demand and rental income mean that investors can get more for their money. Being home to some of the top regeneration projects in the North and hosting the 2023 Eurovision, too, the popularity of the region and its desirability is constantly growing.

The city’s regeneration projects total £7 billion in investments to improve and provide new housing, workspaces, and green spaces across the region, not just the centre. Because of this, the best areas in Liverpool range from the city centre to the suburbs. With constant improvements in the works, it is no wonder how Liverpool has blossomed into one of the fastest-growing property markets – five times the rate of London. Liverpool will continue to attract businesses and see demand from specialists and families alike as projects near completion.

£210,200 Average House Price | 6.5% Yields

Leeds

Due to businesses like Channel4 moving its headquarters here and impressive regeneration projects expanding the city centre and improving transport links, Leeds is currently one of the most exciting buy-to-let locations in the UK. An increase in quality tenants, property prices, and an annual rental price rise of 11% last year followed Channel4’s relocation, boosting Leeds’ economy and desirability. This is only forecast to grow while projects are completed and connectivity to and within the city improves.

The suburbs and towns are some of the best areas in Leeds, proved popular with neighbourhoods and families. However, with the influx of businesses migrating to the city and five universities, these areas are now seeing demand from students and young professionals, too.

£220,300 Average House Price | 6% Yields

Manchester

Over the years, Manchester has become London’s biggest rival. From its growing popularity, 20,000 people are forecast to relocate to the city over the next three years, respectively causing a predicted growth of 23.5% in property prices and 18.2% in rent between 2022 and 2025.

Being London’s main contender, with city centre rent reaching an average of £1,409pcm, the outskirts of the city are some of the best areas in Manchester for both living and the buy-to-let market. 54% of tenants have even relocated to its commuter towns and suburbs, making this an excellent option for migrating businesses and residents to the city who are attracted by Manchester’s growing reputation.