The potential of Wigan as a good Buy-to-Let location is a hot topic and important for investors. Unfortunately, finding a location to invest in that can generate a good return on investment is hard to come by. However, finding it can be the difference between pain and profit.
So, it’s essential to have all the facts, figures, and statistics to make the best decisions. For that, you’re in the right place!
In this article, we’ll be taking a look at Wigan and its stake in being a good location for a Buy-to-Let investment.
What does Wigan’s rental market look like?
Getting started with the most important aspect of Buy-to-Let – the rental market. Take a look below at the average rental prices for properties in Wigan:
- Average property rental price – £792 pcm
By property type:
- House – £733 pcm
- Flat – £955 pcm
It’s quite a unique trend that in Wigan, rental prices for flats are higher than for houses. This may be due to a higher demand from working professionals or single occupants as opposed to families.
What rental yield can investors expect?
The average statistics and data indicate that currently, the average rental yield from properties in Wigan is 3.85%.
What does that mean for property investors?
Well, you’ll be pleased to know that the rental yield in Wigan sits at about the average for rental yield in the UK. Currently, the average rental yield across the UK ranges between 3-4% – having property within this average indicates stability which supports Wigan being a good location for a buy-to-let investment.
Property prices in Wigan
Now that the rental market has been covered, the next important aspect is property prices.
The average asking property price in Wigan is £208,802. However, the actual selling price in Wigan is £183,763.
Compare that to the value of the average property price in the UK, which is £296,000. That’s over £110,000 difference – Wigan is starting to look like an attractive opportunity, right?
Reasons to invest in Wigan
If you need some more information on why Buy-to-Let could be a good investment in Wigan, consider the following factors…
Location, Location, Location
Wigan is included within the Greater Manchester metropolitan area. It is located 20 miles away from Manchester. As a result, many residents of Wigan have all the amenities of Manchester on their doorstep. From large companies, the airport, and shopping facilities. Additionally, with many large companies located in Manchester opting for a remote/hybrid working option – many people will look to move elsewhere where rent is cheaper. This results in greater demand for rental properties in areas such as Wigan. Landlords who have a property in that area stand to benefit the most.
Regeneration = Demand
As mentioned above, Wigan is in an excellent location for access to major cities such as Manchester. This is about to improve even further through the introduction of the HS2 line. Wigan will benefit from transport improvements meaning that locations such as Birmingham will be accessible in 35 minutes, and London only 80 minutes away. As a result, you can expect even more demand for properties as commuters now look elsewhere.
Other regeneration investments have been made by the Local Authority, which will spur private investors to also get involved. As a result, Wigan stands at the forefront and will reap the rewards. This is all likely to have a domino effect, with property valuations rising as a result.
Supply and Demand
Wigan currently has a population size of 324,700 residents, and that is expected to grow to 346,300 residents by 2030. The larger the population, the greater the demand for property. Again, having a rental property available during this surge in population size will definitely benefit the landlord.
How can you become a landlord in Wigan?
Now that you’re up-to-date with all the aspects of investing in Wigan. You might be wondering how you can get involved.
In terms of financing the property, you can approach a lender to apply for a Buy-to-Let mortgage. Ensure you confirm with the lender that you’ll be able to rent out the property before agreeing to a mortgage.
Renting out a property in Wigan is relatively straightforward. If you’re renting to one person or a family – you don’t even need a license or undergo any registration process. However, if you’re planning to rent out a property to 3 or more individual renters with a shared space – also known as an HMO (House of Multiple Occupancy), then you will have to register for a license.
Next, you’ll have to ensure the property is up to scratch. Ensuring all safety and hazards are taken care of. This includes things like repairs and maintenance; the property has to be habitable. Additionally, be sure to get an energy performance certificate (EPC). This should ensure that you have all the basics covered.
Following this, it’s just a case of finding a tenant. Ensure that they’re able to rent and that you have a tenancy agreement in place. Assured shorthold tenancies are the most common, and you’ll need to implement the Tenancy Deposit Scheme.
What happens if you want to stop investing?
If at any point you decide you no longer wish to continue with the Buy-to-Let investment model, you’ll have to sell the property. However, if you still have a tenant living in the property – it can be challenging to sell the property.
Simply put, carrying out any repairs or maintenance while a tenant is still living there is hard to do. Not only will you be impeding on their rights, but potential buyers may also be affected. This is because you’ll have to wait for the tenancy contract to end while issuing an eviction notice.
Unless, of course, you can find a buyer to whom you can sell a tenanted property with the tenant still living there.
Luckily, companies like us at We Buy Any Home are able to take over existing tenancy contracts. We’ll purchase the property in cash, and we don’t even need to visit the property. This ensures you can have a quick sale while the tenant is also not affected.
