As those of us who live in this ‘golden triangle’ know, there is significant wealth around these parts. The prime end of the market in particular remains buoyant and shows all signs of maintaining solid growth even should the post-Brexit UK economy take a significant downturn.
This is not only at the luxury end though. All house sale prices remain on the up and Harrogate, in particular, has historically ridden property downturns much better than the city conurbations of West Yorkshire and significant areas of York. ‘Oop North’, everyone aspires to live somewhere around here.
BUT you have to know exactly where is best. You cannot beat detailed, accurate local knowledge when choosing specific strategies for specific properties in which to invest. Buy-to-let yields aren’t as favourable as other areas, capital growth and stability are the key. HMOs won’t work in very specific areas but boutique HMOs will fly in others.
This Financial Times article focuses on the prime market but illuminates any number of good reasons for investing in the ‘golden triangle’ at all levels of the property market. In uncertain times, investment in this very specific area of Yorkshire is increasingly looking a very sensible choice.
Number 2 in their list of areas for property investment growth potential:
“2. Leeds, York and Harrogate – Yorkshire & Humberside. These are the affluent areas of the region where people are not as constrained by affordability. And yet, because prices are nowhere near the £1m, £2m, £3m mark that they are in London, growth has not been hit by stamp duty.”
So the Telegraph informs everyone of something we already know. The Leeds, York, Harrogate triangle is full of opportunity but there are subtle differences in the types of investment which will work efficiently in each area.
In Harrogate in particular, house prices have historically held well in recessions, so if you want to add a layer of protection to your asset pick your location very carefully. Harrogate is a great choice to protect capital but, overall, rentals yields are tighter than many areas of Leeds, where capital growth will still be limited despite infrastructure investment, but short term yields are more attractive. York has a fine mix of both opportunities but there are local factors such as a very strict implementation of Article 4 across the wider city inhibiting HMO investments.
I can’t stress it enough, local ‘boots on the ground’ with specialist local knowledge are what you need for confident, profitable and secure investments.
In six months time we could be wondering why we were worried. But, if there is economic trouble in China ahead it could knock confidence in the stock market and housing market, and in the long term it could impact jobs and companies in Britain that sell products to China, Mr Chegwidden explained.