What £500,000 buys you in the UK's top northern cities compared to London

Manchester offers affordable property and high rental returns CREDIT: ALAN NOVELLI / ALAMY

House prices are rising in all parts of the country except London, and buy-to-let investors are increasingly shunning the traditionally profitable capital city for northern hotspots where property is cheap and returns are high.

According to recent data from Nationwide Building Society, property prices in London fell by 0.6 per cent in the year to September, compared to the national average growth of two per cent.

Separate data from Hometrack, also published last week, pointed to Manchester, Birmingham and Edinburgh specifically as cities where house prices have soared ahead of other UK regions, with growth up 7.3 per cent, 6.7 per cent and 6.6 per cent, respectively.

Surging house prices in these cities coupled with attractive rental yields mean they're quickly becoming a desirable location for buy-to-let investors. Landlords in Manchester, for instance, received an average yield of 6.9 per cent in July of this year, according to figures from HM Land registry.

First-time buyers are also being lured to urban hotspots such as Liverpool and Manchester in the hope of snapping up a home that is a fraction of the price of London property.

London

A typical two-bedroom flat in London costs just over £500,000, according to Savills.

The property below, for example, situated in leafy Clapham, London, offers two bedrooms, a bathroom, a reception/dining room and a balcony, spread over 625 sq ft. The flat is a five-minute walk from Battersea Park, the closest station, and about a 30 minute train drive into the city centre.

This property in Clapham, London, is on the market for £499,950 CREDIT: SAVILLS

It features two double bedrooms, a kitchen and a reception / dining room CREDIT: SAVILLS

So how does this compare to what £500,000 will buy you in Manchester, Birmingham, Liverpool and Nottingham?

Birmingham

In Birmingham's trendy Moseley suburb, named the best place in the UK for city living in 2015, you can buy this luxury three-bedroom apartment for £495,000. It's around a 15-minute walk to University train station, which is only two stops from Birmingham New Street.

Housed in a development of 14 apartments, the three-bedroom flat come with triple glazing, underfloor heating, a kitchen with Miele appliances, a communal lift, landscaped gardens, and two parking spaces. It's spread over 2,400 sq ft – almost four times bigger than the London flat.

A three-bedroom flat in this luxury development in Birmingham's trendy Moseley suburb is on the market for just under £500,000 CREDIT: RIGHTMOVE / ROBERT POWELL

Spread over 2,400 sq ft, the flat is almost four times bigger than the London apartment above CREDIT: RIGHTMOVE / ROBERT POWELL

Manchester

A budget of £500,000 will stretch to a three-bedroom, semi-detached home in West Didsbury, Manchester. It is housed in a Grade II listed building located within the prestigious 'Didsbury Gate' development, which is within walking distance of Burton Road and West Didsbury village. It also boasts a private landscaped garden and two parking spaces.

This three-bedroom home is housed in a Grade II listed building CREDIT: RIGHTMOVE / PHILIP JAMES KENNEDY

Liverpool

In Merseyside, Liverpool, this £500,000 house offers six bedrooms, five of which are doubles. It also has enclosed gardens surrounding the property with a large driveway leading to a detached double garage. The property is based just half a mile from Eccleston Park train station.

This six-bedroom house in Liverpool is on the market for £500,000 CREDIT: EXPRESS ESTATE AGENCY

Gardens surrounding the property, with a large driveway leading to a detached double garage CREDIT: EXPRESS ESTATE AGENCY

Nottingham

This cottage in Nottingham's sought-after Vale of Belvoir, which comes with a south-facing garden and views up to Belvoir Castle, is on the market for £525,000. Covering more than 2,306 sq ft, there are four double bedrooms, a dining room, kitchen, garage, sitting room, pantry and garden room. 

This cottage in Nottingham's sought-after Vale of Belvoir is on the market for £525,000 CREDIT: SAVILLS

For a little over half a million pounds, buyers will acquire more than 2,306 sq ft of property CREDIT: SAVILLS

http://www.telegraph.co.uk/property/house-prices/500000-buys-uks-top-northern-cities-compared-london/