Landlords looking to invest further into the buy-to-let sector should purchase a property in areas that voted to leave the EU, according to the latest quarterly report from LendInvest.
The study, which tracks changes and trends in rental yields and capital gains across the UK, also looked into how a landlord’s return on investment differs between English local authority districts that voted to remain or leave in last month’s EU referendum.
The report found that just two of the top 20 areas for strong rental yields voted to stay in the EU – Manchester and Liverpool.
Contrastingly, only two of the top 20 districts for high capital gains – Barking and Dagenham and Spelthorne in Surrey – voted to stay in the EU.
The top local authority districts for landlords for both rental yields and capital gains, and how they voted in the EU referendum, are as follows:
The co-founder and CEO of LendInvest, Christian Faes, comments on the findings: “It’s very interesting that the top districts for rental yield, which are often found in the North East and North West, voted so overwhelmingly for Brexit.
“The areas that have seen the best of the recent boom times have generally enjoyed the biggest house price rises, and with that offered the greatest capital gains. Perhaps it is no surprise that they were sufficiently content with the status quo to vote remain. Areas which have seen far more modest house price rises appear to have been more disposed to voting for the change promised by Brexit.”
He believes: “Brexit may create opportunities for property investors, particularly professional and experienced ones. House prices are expected to soften, so some would-be buyers may put off buying. But they still need somewhere to live, which is good news for landlords. What’s more, if house prices do cool as predicted, then investing in property will become even more enticing.”
Alongside its Brexit research, LendInvest has released its latest quarterly figures for rental yields, capital gains and overall return on investment for different postcode areas across the UK.
Again, Manchester has taken the top spot, with an average rental yield of 6.8%. However, there has been a shake up when it comes to the next best options, with Coventry, Luton and Outer London moving up the table to take the joint second spot, all of which offer a rental yield of 5.8%.
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If you are thinking of investing in a new buy-to-let property, consider some of the locations highlighted in this report.
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