The South of England has the strongest performing property market but the North is catching up, peer-to-peer platform Sourced Capital has revealed.
The area covering the East of England, London, the South East and South West, has in the past 12 months seen £132.7bn worth of property sold across 401,606 transactions. The average sale price per property was £335,567.
But Sourced Capital’s data has shown that the property market in the North – including the North West, North East, Yorkshire and the Humber and Scotland – is catching up, with 333,262 transactions recorded over the same 12-month period.
However, the value of these properties is significantly lower with the average property going for £152,276, bringing the total value of property transactions in the North to £52.1bn.
“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,” said Stephen Moss, founder and managing director of Sourced Capital.
“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 past 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.”
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 did exceed that of the North at £185,241.
“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,” Moss said.
“However, the rise of the armchair investor via P2P 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 P2P platform allows you to adapt to this changing landscape and ensures your investment remains as profitable as it can be.”