If you are considering investing in the Lancaster or Morecambe property market, you’ll be pleased to know that there are still some attractive returns to have.
This week our rental team have been chatting with our marketing department about rental yields across the UK and how we compare. The Northwest offers the 4th best when it comes to attractive returns, averaging a yield of 6.6% gross. Across the UK the average is 5.8%.
3 years ago the average gross yield was 5.1%. Property prices may have risen but so have rents. In Lancaster, the average rent for an apartment has risen by 13.7% in the last 12 months, whilst over in Morecambe it has grown by 8.7%. In both locations, rents have risen faster than property prices have, especially in Morecambe where the average price of an apartment has actually decreased…. more on that later!
Locally there is still a huge shortage of rental properties. Take a recent 1-bed rental property at Aalborg Place – it was furnished and came with parking. We asked £700 pcm. We had 46 applications. This shows the high demand.
A survey of over 1,000 landlords by Dataloft with Homelet found that the majority (73%) of landlords were planning for their portfolios to stay the same over the next year, with 1 in 10 looking to expand. The problem is only 10% are looking to expand, therefore some are looking to sell. We need more to buy!
Nearly half of landlords see their portfolio as their long-term pension, a further 25% consider property the best place to invest, and 17% hope to increase their monthly income. What are your views?
Lancaster and Morecambe are both great places for landlords to consider investing. Lancaster is a university city. We have two universities and a training hospital. Morecambe has been promised the Eden Project which will give huge investment into the area. We also have large employers with Heysham Power Station and Heysham Port.
If you would like to chat about investing in Lancaster and Morecambe please get in touch. At JDG we are here to help. You can email me at firstname.lastname@example.org or cal me on 01524 843322
Thanks for reading