How to be a property value investor - go North!

With high property prices and low rental yields, buying to let in Britain is a lot of bother. But there is value to be found if you know where to look. Phil Oakley explains.

We've already made our views on buy-to-let pretty clear. In general, we don't think it's worth the hassle. To sum up, rental yields are too low. And that's because property prices are too high.

But, as several readers pointed out beneath my piece last week (Rising rents are a red flag for the property market), we based our views on average rents and average house prices. That's true: clearly, like most markets, the average level can be made up of high and low values.

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3-bed terracedGrimsby30,0003,84012.80%July 2012
TerracedLiverpool55,0006,30011.45%July 2012
Semi-detachedMorpeth55,0005,4009.82%July 2012
FlatStoke-on-Trent40,0004,76011.90%July 2012
FlatWalsall48,0004,7409.88%July 2012
TerracedWorksop38,0004,20011.05%July 2012
FlatLeeds70,0007,85011.21%May 2012
TerracedManchester54,0006,00011.11%May 2012
FlatBirmingham29,0003,70012.76%March 2012
TerracedManchester60,0006,00010.00%March 2012
TerracedManchester60,0006,90011.50%March 2012
TerracedSunderland40,0005,52013.80%March 2012

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.