A recent survey by a recognized chain of estate agents made Peterborough the surprise winner of the best place in England to make an investment in rental property.
Haart estate agents’ new Yield Index shows that typical yearly returns on one, two and three-bedroom property in Peterborough are the greatest in the country. The returns are greater even than that of London.
Haart’s findings suggest that an investor buying a one-bedroom abode in the town could expect a return of around 8.7% per annum. Two bedroom properties return around a 9% profit per year, with three-bedroom homes generating an average of 6.7%.
On the whole, the East of England came out on top in terms of generating the best rental profits in Haart’s operational areas. The East Midlands came in second, with South Yorkshire completing the podium positions. London ranked only fourth in the findings.
Peterborough best place to invest in property
A rising rental tide
Peterborough’s position at the top of the investment return standings comes as little surprise, according to Haart’s managing director Andrew Benn. London is still proving a profitable area in which to invest, with yields of between 5%-7% per annum manageably achievable. However, Mr Benn believes the trends could be changing, with the country, ‘starting to see investors focus more on other parts of the country, such as Peterborough.
Benn also believes that the recent rise in rental prices are also a catalyst for the increase of buy-to-let profit in town’s such as Peterborough. Benn said that, ‘rising rents, are offering prospective landlords annual returns of up to 9%, a yield they simply wouldn’t be able to achieve with other forms of mainstream investment.’