Buy-to-let investors boosts house sales
17 March 2004
The North has seen house sales rocket as buy-to-let investors head to the area to purchase property, according to a mortgage lender.
Capital Home Loans reports that the North now offers more lucrative rental yields and capital growth and, as a result, CHL mortgage sales in the region rose by 210 per cent during the first two months of the year, compared to the same period last year.
While property investors in the south of England receive average yields of five per cent, those in the north are enjoying yields of at least nine per cent, Mortgage Introducer reports.
Buy-to-let and self-certification specialist CHL predicts that the region will continue to be a hotspot for residential property investors, as long as the rental yield and capital growth differential remains high.
CHL reports that half of all of its buy-to-let purchases are made outside the South.
James Bickers, CHL business development manager for the north of England, said: "Buy-to-let activity is rocketing in the North - especially in growth areas such as Liverpool, Newcastle and Leeds. The yields are attracting property investors to the region, particularly from the south where rental yields have reduced.
"Investors are also finding that capital growth up North is much more attractive than elsewhere."
Mr Bickers added that first-time buyers are increasingly finding themselves being priced out of the market in the North, providing a new strata of tenants who would have bought in the past.