The North East is officially the UK's cheapest place to rent
According to a recent report from the Deposit Protection Service, the North East region is the cheapest place to rent in the UK, with an average monthly rental of £529. Given the volume of first-hand data they process, this could we be right, and it's actually a good thing for landlords property and investors.
Here at Clarice Carr & Company, our philosophy has always been to diversify your buy to let portfolio and good value rents also mean reasonable property prices, which is also the reason why we fly the flag for Newcastle and the North East as a residential investment location.
The report also predicts that rents will begin to rise this year, up tom 15% by 2023, as demand for rental properties rises and the number of available properties goes down. This also means it's a great time to buy as prices for potential rental properties in need of refurbishment and improvement are bound to rise.
In fact, rent has already started, with a small uplift in the last quarter of 2018, so now is a good time to start looking for your buy to let investment. For serial investors or portfolio owners, it's an even more tempting opportunity, as many rental properties are coming onto the market at tempting prices. If you're playing the long game, there has never been a better time to get into residential property investment.
As with any property purchase or investment, the trick is to find the properties that offer a quick return and a good yield. We have just completed a purchase for a new landlord who is looking to build a small portfolio as a future investment for his children. We found him a flat for £36,000.
The property requires around £15,000 investing on refurbishment and improvements, after which it will be worth £80,000, an equity profit of almost £30,000 in addition to an annual rental yield of 10.3% at £450 per month. That's a good investment by any standards, and all delivered by our team with no stress or complications.
So yes, the North East may have the lowest rents in the UK, but that's a good thing for tenants and landlords alike. Whether you're a new landlord or seasoned property investor, we can help you to make money in the current market.