National mortgage broker Park Row is recommending buy-to-let clients to spread their investment from the South-east to the North to boost returns.
It says landlords are buying properties in the North to reduce the focus on the South-east, where yields have fallen from 10 per cent to 4 per cent over the past year. The firm claims yields in the North are as high as 20 per cent.
Yorkshire-based Park Row adviser Paul Singleton, who processes around 25 BTL mortgages a week, says he has seen a dramatic leap in interest from clients in the South-east. He says 20 per cent of his clients are now from the South while a year ago all his clients were Northern-based.
He expects this to continue as investors can buy a two-bedroom flat in some areas for around £65,000 and rent it out for £400 a month.
Singleton says: “I would say buy loads in the North as long as you make sure you are getting the right property that will give a decent return.”
Lender Mortgage Exp-ress product development manager Roger Hillier says: “Investors are looking fur-ther afield. It makes sense but they should not just look at the rental yield but also consider how much the cap-ital value of the property will increase.”