Liverpool named buy-to-let hotspot 30/6/2017

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Sally Walmsley
Written by Sally Walmsley            30/6/2017

Liverpool has taken the crown as the UK’s top spot for buy-to-let rental yield.

According to mortgage broker Private Finance, the city offers a rental yield of 8% for landlords after mortgage costs have been deducted.

Its closest competitors were Nottingham at 5.6%, Coventry at 5.4% and Greater Manchester at 4.3%.

According to the company the average house price in the city is £122,283 and average rent is £1,021 a month.

It said the areas with the highest yields tend to be those with the lowest house prices, with six out of 10 of the cities with the highest rental yields also have some of the lowest house prices in the country.

Cities with a strong student let market and coastal towns that benefit from holiday rentals also dominate the list.

Shaun Church, director of Private Finance, says: “It’s not only the residential property market that’s all about location, location, location.

“Many landlords will treat property as a long-term investment, looking for reward in the form of capital gain. Succeeding in making a long-term profit depends on buying an affordable property and being confident its value will appreciate at a higher rate than mortgage borrowing.

“Investors should look for areas with strong rental demand. Larger cities and university towns generally have better performing rental markets: this will help to avoid lengthy void periods that can damage landlords’ profitability.”

Top 10 property hotspots according to the report

  1. Liverpool
  2. Nottingham
  3. Coventry
  4. Greater Manchester
  5. Portsmouth
  6. Cardiff
  7. Blackpool
  8. Lincoln
  9. Bournemouth
  10. Southampton