The buy to let hotspot list
It is important to note that property prices can go down as well us up.
| CITY |
Av Monthly Rent |
YIELD % |
| Manchester | £719 | 7.98 |
| Kingston-upon-Hull | £450 | 7.81 |
| Blackpool | £488 | 7.35 |
| Forest Heath (a Suffolk district, includes Newmarket) |
£1,036 | 7.26 |
| Coventry | £702 | 7.20 |
| Southampton | £900 | 7.13 |
| Nottingham | £524 | 7.04 |
| Liverpool | £494 | 6.56 |
| Cardiff | £802 | 6.38 |
| Portsmouth | £825 | 6.36 |
The research produced listed the hotspots in terms of yield. This is the annual interest or income you might receive from your investment and is normally stated as a percentage of the property price. The lower you pay for a property and the greater the rent value is, the better the yield although costs will eat into this yield. It is important to note that growth or potential growth in house prices is not factored in and although it can be estimated from past performance, there are no guarantees.
Manchester is notable because more than 25% of its housing stock consists of buy to let properties combined with comparatively low house prices and only modest increases in recent times (4.4% in the last year). It continues to be very popular with students and young professionals.
Buy to let hotspots - yield growth order
The research also examined increases in yields. It found that Reading and Berkshire experienced the highest year-on-year yield increases, at more than 12.5%, to 5.48%. Southampton, Brighton and Hove, Cheltenham, Bristol, Bournemouth, Manchester, Oxford and Eastbourne all also had high places in this list.London remains a very popular buy to let location, with yields in some areas as high as 6%, such as in Newham. Similar areas include Brent, Southwark Enfield and Lewisham and these all reflect that where house prices are lower, yields are higher.
*Fixed Fee – No Sale No Fee – On all Mortgage Lender Panels
