Although London generally offers the highest rent prices in the country, it’s sky-high house prices mean that it doesn’t always provide the best rental yields for landlords.
So what can you buy elsewhere in the country for the same price as a London property?
According to the latest official figures, the average house price in London is now a huge £472,000. But if you’re looking to purchase a rental property in a central location, you may have trouble, for this price will only get you a one (or two, if you’re lucky) bedroom flat on the Zone 2/3 border.
The property price gap between London and the rest of the country is now more than double, with the typical price in the UK standing at £214,000.
With many Londoners being priced out of the owner-occupier and rental markets, increasing numbers are moving out of the capital. Recent research has found that London tops the table for the largest amount of people moving within the UK, with 68,000 leaving the capital in the past year.
So where are Londoners moving to?
Unsurprisingly, many Londoners looking for a new place to live want to stay relatively close to the capital, meaning that leafy commuter towns and villages can be prime investment spots for landlords.
With lower house prices and more space, properties in these tenant hotspots will offer higher rental yields than the capital and benefit from swathes of demand from renters seeking good value homes.
But where are the tenants that are looking for the buzz of a big city looking?
Landlords, if you’re looking for a new investment property, look to these popular cities, where you can get much more for your money than in the exorbitant capital:
Cambridge – You can find a two-bedroom, Victorian terraced house, including a refitted kitchen and shower room and a private rear garden, in the sought-after city for £485,000.
Southampton – For £500,000, you could buy a double-fronted, Grade II-listed house with six bedrooms across four floors.
Manchester – Located between two train stations, landlords can snap up a stylish two-bedroom apartment in St. John’s Quarter for £465,000.
Oxford – Fancy a period property? Buy a three-bedroom house with rear garden within walking distance of the city centre for £450,000.
Birmingham – For £450,000, you can find a duplex apartment with more than 1,300 square foot of space, three bedrooms, allocated parking and a 500 square foot terrace in Birmingham.
Nottingham – Snap up a five-bedroom detached house with an abundance of period features, including a boot room, walk-in pantry and wine cellar, for £475,000.
Leeds – Bag a luxury penthouse with city and river views in Leeds for £450,000.
Leicester – For £450,000, you can purchase a five-bedroom detached house over three floors, just over a mile from the train station.
Cardiff – Buy two flats in one with a five-bedroom terraced house in Cardiff, on the market for £469,950.
Liverpool – With views over the Mersey and Kings Waterfront Arena, a three-bedroom apartment costs £475,000.
Sheffield – A Victorian, semi-detached house near the university has five bedrooms, three reception rooms and pretty gardens, for sale at £450,000.
Glasgow – Sitting within plenty of green space, a 2,200 square foot flat costs £460,000.
Newcastle – Looking for a three-bedroom, Grade II-listed penthouse with a spiral staircase overlooking Grey’s Monument? Find one for £450,000.
Edinburgh – Part of a Georgian terrace, a three-bedroom flat within walking distance of the city centre, with both front and rear gardens, is £475,000.
Belfast – A six-bedroom house near the city centre, boasting exceptional energy efficiency technologies, costs just £295,000.
Aberdeen – A versatile, three double and three single bedroomed property in Aberdeen costs around £330,000.
Landlords, wherever you purchase an investment property across the UK, remember to protect it with the widest cover on the market. Just Landlords offers 33 essential covers as standard – can your current landlord insurance provider give you this much protection?
Find out more about our award-winning policy here: https://www.justlandlords.co.uk/landlordinsurance