This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
One-bed properties are now providing the best financial investment when it comes to buy-to-let rental yields, according to lettings management platform Howsy.
Looking at figures for major cities across the UK, it found that one-beds now average a rental yield of 6.2%.
Previously, three-beds held the top spot, with a rental yield of 4.3%. Despite this increasing to 5% in this latest research, one-beds have rocketed ahead.
The highest performing areas for one-bed rental yields included in this analysis are:
The research also looked at two-bed buy-to-let investments, revealing that Newcastle, Glasgow and Belfast all have the highest average rental yields of 6.9%. This is followed by Sheffield (6.7%) and Leeds (6.4%).
The top of the table for three-bed rental yields is Glasgow again, at 6.9%.
Founder and CEO of Howsy, Calum Brannan, commented: “We’re seeing a lot of changes to traditional property trends across the sector and the latest seems to be the profitability of the three-bed buy-to-let.
While still a good investment, on the whole, tenants demand is growing for one and two-bed homes that provide them with a space of their own.
This growing demand is leading to one and two-bed properties climbing the ranks of profitability due to their lower investment price point and higher demand pushing up rental prices.
As the threat of the Coronavirus reduces, we will no doubt see this trend reverse as people begin to again feel comfortable about shared living and the better social lifestyle this brings.”
This latest research from Howsy is based on the average house price and rent for each location, as provided by Home.co.uk.
Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources.
When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.
Just Landlords is a trading name of Arthur J. Gallagher Insurance Brokers Limited, which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 7th Floor, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909
Website by Ampology Digital