Four reasons to invest in Warrington
Warrington has fast become a property hotspot, spurred on by the Northern Powerhouse vision which has created a major shake-up of the north and its key areas. Whilst cities such as Manchester and Liverpool will always remain in high demand from investors, thriving towns such as Warrington are fast making a name for themselves as prime locations for high yields and capital growth.
The sheer potential of Warrington still needs to be unlocked for any who are still unaware of its existence and there are a number of factors which contribute to this town being a valid buy to let location.
1) A Perfect Positioning
Transport links play a vital part of establishing a good investment location - good links can be the difference between a successful buy to let property, or a poor performing one. Warrington is right in the heart of the north’s major transport networks ensuring that almost anywhere in the UK is easily accessible from this town and tenants always have adequate transport options, regardless of where they commute to.
Originally part of Lancashire, Warrington is now located in the county of Cheshire. Conveniently situated between two of the UK’s major cities, Warrington offers great potential for working professionals and property is in high demand. Nestled between Manchester and Liverpool, both cities are easily accessible from Warrington by car or train within less than half an hour. Key motorway networks such as the M6, M56 and M62 form a partial box around the town and allow sufficient transport links for these cities as well as other surrounding areas such as Chester and Bolton. Plus, its two major train stations, Central and Bank Quay form direct links to Manchester, Liverpool, Edinburgh and London.
2) Affordable Prices
Once a thriving market town, Warrington has managed to make an impressive recovery since the economic downturn and offers a healthy mix of both affordable and high end properties. Over the next five years, the area is predicted to see 12,000 new jobs created as well as 5,000 new homes built – a healthy sign of future development and a reminder of the impact that the Northern Powerhouse is due to have on the economy.
An array of heritage sites, parks and recreational activities are nestled in Warrington, giving it all the benefits of a city status but without city prices. In July 2015, house prices in Warrington were recorded at an average of £147,366 which can be argued as an extremely affordable price given the average rate of the UK as a whole. Whilst these prices are according to the land registry and are across all property types, investors can still benefit from discounted deals on pre-tenanted properties in Warrington generating yields of around 7-8%.
3) Tenant Demand
With an estimated population of over 200,000, Warrington has been a key focus for economic growth and has even been named as having one of the strongest performing economies in the North West. Additionally, a £15 million “growth deal” from the Government looks set to attract an estimated £280 million of private investment to the area. This will create over 250,000 jobs in the next 10-15 years which, as a result, will attract more residents to the area.
Warrington has many interesting attractions – the town’s Cultural Quarter is home to museums, libraries, art galleries and concert venues, as well as several new bars and restaurants that attract a young, affluent clientele to the area. As a result, property demand has increased and there are several new residential developments that compliment this surge of young professionals. As the towns’ growth continues, demand is likely to increase further and the need for quality rental property will continue to rise.
4) Capital Growth
Now is the perfect time to invest in Warrington. Despite the recession, this town is one of the few places that managed to recover remarkably quickly and has seen house prices follow an upward curve ever since.
Named in one of the top 25 postcodes in the country for buy to let, the town’s property market has a healthy mix of both strong yields and capital growth. In 2010, Warrington’s house price growth increased by 7.1%, a remarkable rise given the financial crisis. Since then, prices have continued to rise at a healthy and sustainable rate. From 2013 to 2015, house prices have increased in excess of £10,000, rising from an average price of £136,360 to £147,366 and with more investment planned for the area, Warrington is a town that is soon to be one of the leading towns for buy to let in the UK.
2016 is the year of the Northern Powerhouse. To speak to someone about investing in Warrington or any other areas of the UK, contact Sequre today. Our team are ready to help you achieve your financial goals. Call us on 0800 011 2277 to find out more.