Buy To Let Hotspots Central Housing Group

Southern Cities Dominate Buy To Let Hotspots

Northern cities may dominate the tables as buy to let hotspots for house price growth but a different picture is emerging for the rental market.

New analysis claims to have uncovered the best UK cities for a landlord’s buy-to-let investment.

The research by Aldermore assesses and provides a score for the average rent per room per month, short-term yield for a new buy-to-let purchase, average property price rises over the past 10 years, proportion of vacant properties in a city and size of the private rental market across the UK.

Seven of the top 10 cities buy to let hotspots for landlords were in southern England while only three northern cities – Manchester, Liverpool and Newcastle – make the top 25.

Yorkshire has three cities in the bottom six while Nottingham was the only city from the Midlands in the top 10.

Despite having among the lowest short-term yields, Oxford comes out on top with the highest overall score in the index of 74.

Manchester and Edinburgh are just behind with 72, and London has 71.

The research shows London ranks first for total rents, while Liverpool has the best short-term rental yields.

Cambridge got the highest score for price growth while Cardiff and Oxford were the best areas for low vacant stock.

Damian Thompson, director of mortgages at Aldermore, said: “Aldermore’s Buy to Let City Tracker shows there are still great short- and long-term investment opportunities for landlords.

“The number of people renting in the UK has been rapidly growing, up 1.7m in ten years, so private landlords are an increasingly central part of the housing market as supporting a robust and strong private rented sector becomes more essential.

“The UK housing market has never been a singular thing, instead made up of multiple smaller markets with their own unique conditions and challenges.

“There have been numerous regulatory changes recently and persistent economic uncertainty but this affects every region differently. Going forward, landlords will need continual backing and advice from lenders and the wider industry so they can provide choice, diversity of tenure and quality properties for renters.”

Ranking

City

Region

Overall score

1

Oxford

South East

74

2

Manchester

North West

72

3

Edinburgh

Scotland

72

4

London

London

71

5

Norwich

Eastern

66

6

Bristol

South West

64

7

Nottingham

East Midlands

63

8

Cambridge

Eastern

63

9

Brighton

South East

60

10

Milton Keynes

South East

55

11

Plymouth

South West

54

12

Hull

Yorkshire

49

13

Leicester

East Midlands

49

14

Coventry

West Midlands

49

15

Southampton

South East

48

16

Birmingham

West Midlands

47

17

Liverpool

North West

44

18

Cardiff

Wales

39

19

Glasgow

Scotland

37

20

Leeds

Yorkshire

32

21

Derby

East Midlands

31

22

Sheffield

Yorkshire

30

23

Bradford

Yorkshire

29

24

Newcastle

North East

26

25

Wolverhampton

West Midlands

25

 

Blog Post from Property Eye

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