Buy-to-let 'most valuable' in North-East

Buy-to-let 'most valuable' in North-East

North-east England offers the best value for buy-to-let investors, according to research by Octane Capital.

Property landlords will spend less and get more for their money in the region, the research said.

For example, they would pay an average of £104,000 per bedroom for portfolios in the north-east of England, compared to £556,460 in London.

Portfolios in the north east with an average of 9.7 bedrooms can be purchased for slightly more than £1mn, making them the best value for money.

North east property portfolios have the highest yield in the UK at 4.5 per cent.

Yorkshire and the Humber came a close second in terms of value for money with an average yield of 4.4 percent.

However, property portfolios in London were the lowest value for money, with an average yield of 1.4 per cent.

Investors are spending an average of £1.2mn per property portfolio to increase their property investments instead of opting for single properties. 

Octane Capital chief executive Jonathan Samuels, said: “Portfolio investment offers advanced investors a far quicker path to scaling their portfolio and, as is often the case when buying in bulk, doing so can result in securing a greater level of value per unit.

“But it’s also the convenience of this approach that appeals to many, allowing them to acquire multiple properties in a single transaction. 

“Doing so also allows them to complete any modernisation and to bring these homes to market within a similar timeframe, so that they can start to earn a consistent return across the board.”

Earlier this month, FTAdviser reported on the ONS ‘housing purchase affordability’ and found that the North East is the most affordable region in England for housing.

At the time, FTAdviser reported that founder Ross Boyd said: “As for London, the capital is in a different dimension altogether when it comes to affordability.

“For the average person seeking to get onto the property ladder in the capital, it's like climbing 10 Everests.”

Lucy Evans is interning with FT Adviser