The property investment North-South (Midlands) divide

Grand designs

The latest research from peer to peer lending platform, Sourced Capital of the Sourced.co Group, has looked at where’s best to invest in bricks and mortar across the north, south and midlands regions of Britain.

Location can be vital when investing in property and regional influences can make the difference between profit and loss, so Sourced Capital has dissected the market based on the value of a property and the total value sold, as well as demand for these properties based on the volume of transactions.

The North-South divide is a very contentious issue but with the Midlands becoming a property powerhouse in its own right over the last few years, Sourced Capital totted up the totals based on: –

  • The North including the North West, North East, Yorkshire and the Humber and Scotland.
  • The South including the East of England, London, the South East and South West.
  • The Midlands including the East and West Midlands and Wales.

The figures show that despite much talk of the Northern Powerhouse, the South remains in pole position where the property market is concerned. In the last 12 months, house prices across the South have averaged £335,567 with £132.7bn worth of property sold across 401,606 transactions.

The North doesn’t trail by much when it comes to the churn of property sales though, with 333,262 transactions over the last month, although the value of these properties is significantly lower with the average property going for £152,276 with a total value of £52.1bn.

The Midlands and Wales accounted for the lowest level of transactions at 203,586 and while total value also trailed at just £38,4bn, the average house price does exceed that of the North at £185,241.

Stephen Moss, founder and MD of Sourced Capital, commented:

“When it comes to the sheer volume of transactions and the value of bricks and mortar, the South continues to lead the way and while this is largely driven by London, each region provides an attractive proposition when it comes to investing from both a demand and value point of view.

However, the North isn’t far behind when it comes to demand for housing and with the exception of the North East, it’s fair to say the property market across the majority of the North and even parts of the Midlands can go toe to toe with the South on transaction volume.

Scotland and the North West have seen the highest level of transactions outside of London in the last 12 months which demonstrates that the need for property investment doesn’t dry up once you reach Milton Keynes. While property values are lower on average, a good investment isn’t built on these alone and it’s finding the balance between cost, demand and return that will make your bricks and mortar venture a success.

Traditionally, the average buy-to-let landlord tends to invest close to home as they know the area and it also makes managing their investment that much easier. However, the rise of the armchair investor via peer to peer lending platforms means this is no longer the norm.

You can now spread your property investments across the length and breadth of the nation, all from the comfort of your front room. This means you can place some of your property investment eggs in London, some in the Midlands and some in the North West and Scotland, if you so wish to do so.

Spreading your investment also reduces the risk of more granular market influences. As we’ve seen over the last year due to Brexit, London cooled considerably while much of the Midlands and the North continued to register healthy levels of price growth. Building a diverse portfolio via a peer to peer platform allows you to adapt to this changing landscape and ensures your investment remains as profitable as it can be.”

The South
Location
Average price (last 12 months)
Number of sales (last 12 months)
Total value
East of England
£290,928
93,214
£27,118,569,568
London
£472,524
82,080
£38,784,793,430
South East
£322,210
133,915
£43,148,699,602
South West
£256,607
92,397
£23,709,730,038
The South
£335,567
401,606
£132,761,792,637
The North
Location
Average price (last 12 months)
Number of sales (last 12 months)
Total value
North East
£128,901
38,224
£4,927,111,212
North West
£164,571
110,177
£18,131,971,456
Yorkshire and The Humber
£163,844
82,981
£13,595,905,597
Scotland
£151,788
101,880
£15,464,126,134
The North
£152,276
333,262
£52,119,114,399
The Midlands & Wales
Location
Average price (last 12 months)
Number of sales (last 12 months)
Total value
East Midlands
£193,520
75,482
£14,607,287,778
West Midlands Region
£198,513
81,886
£16,255,399,406
Wales
£163,689
46,218
£7,565,387,523
The Midlands and Wales
£185,241
203,586
£38,428,074,707

 

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