The Property Ombudsman

Northeast: Why high-level investment helps buy to let investors

The Northeast continues to draw high-level investment, with Nissan having recently announced details of a new £1bn “Gigafactory” to support its Sunderland car plant, increasing the number of electric vehicles able to be produced on site.

The battery plant is expected to create a total of 6,200 jobs when the impact on suppliers has been included, an enormous vote of confidence in the area. But what are the advantages from a buy-to-let perspective for those investing in the area?

1. Rental demand

When there is an increase in available work in an area, demand for housing increases. Many working professionals that are attracted to the area will be motivated to rent due to the flexibility of being able to move in with greater ease when compared to purchasing.

We are excited to have secured high yielding buy-to-let property in the Northeast at discounted prices:

2. Capital Growth

Demand plays a key part in the success of a buy-to-let property investment, and when an area sees an increase in employment opportunities, demand for housing goes up.

With greater demand for property stock and a decreasing number of properties available on the market, house prices begin to rise. Investors that own property can start to benefit from capital growth, a rise in the value of their investment. Investors in Sunderland realised a very healthy average price increase of 8.31%, or in monetary terms, an increase in value of £12,665.

When considering rental returns on top of this value increase, a buy-to-let investment becomes an increasingly attractive investment.

3. Long term outlook

Investment in an area creates a positive long-term forecast for a property investment. Indicative of confidence in an area, high-level investment typically realises consistent demand and capital gains for many years to come. 

With the continued trend of ‘Northshoring’, the relocation of people and businesses moving North in search of more affordable rents, areas such as Sunderland and other Northern cities will continue to realise strong rental demand and capital growth for the long term.

If you are interested in investing, Sequre are specialists at sourcing high yielding buy to let investment properties in key areas across the UK. What separates us from the rest is our bulk purchasing approach, allowing investors with any budget the opportunity to purchase heavily discounted property with fantastic yield potential. Get in touch to find out more.

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