New research from LendInvest has uncovered the best places for you to invest as a buy-to-let landlord.
Assessing average rental yields across the last five years (2010-2015), the study has revealed that the North West of England offers the greatest rental returns.
However, if you are looking for capital growth, then you should search further South for your perfect investment property.
Your rental yield can be gauged by taking your average monthly rent and a working it out as a percentage of the property’s market price.
The top ten areas to invest, in terms of the greatest rental yield, were found to be:
- Outer London-4.86%
Manchester tops the table for investment, unsurprisingly given that 26.85% of the housing stock in the city. This is above the national average of 18%, giving investors insurance that there will be demand for property in the region. Manchester is also home to 60% more 25-29 year olds, the age group more likely to rent.
What’s more, yields have been driven due to the opening of the MediaCityUK in Salford, Greater Manchester, in 2011. Young professionals, graduates and students are all searching for secure accommodation in the region.
It is interesting to note that a number of top locations in terms of rental yields are key University cities and towns. With student demand growing, you may want to consider investing in this type of market. However, be sure to weigh up the pros and cons of this type of investment.
As always, if you are thinking of entering the buy-to-let market, you must make sure you have a suitable landlord insurance policy. Additionally, you might want to consider taking out rent guarantee insurance. It is all well and good investing in an area with typically good high rental yields, but with no tenants, you will achieve nothing!