Letting agency fees ban may drive investors north say...

The Northern Powerhouse agenda, increased infrastructure investment announced in the Autumn Statement and low entry prices make the north of England hugely attractive to investors effectively priced out of London and the south.

That's the view of Graham Davidson, managing director of Manchester-based Sequre Property Investment.

“The north remains the prudent choice for buy to let, with yields of six to eight per cent attainable in popular cities such as Liverpool, Manchester and Leeds. Entry prices start at £90,000, a sum that would only fetch a parking space in London now and will result in strong capital growth” he says.

He says his company’s research has shown that over 68 per cent of northern buy to let property purchasers hail from London and the south – evidence, says Davidson, of the appetite for good quality, well located ‘hands off’ investments at a relatively low cost.

Davidson says landlords will not suddenly sell up as a result of letting agents fees possibly moving on to them instead of being levied on tenants. “Instead” he says “it’s likely that they increase rents to cover their cost - we have seen rents already rise eight per cent in Manchester city centre since the three per cent stamp duty surcharge introduced in April.”