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Top 5 Buy to Let Hot Spots in the UK

An Overview of the Top 5 Buy to Let Hot Spots in The UK

The property is usually considered as a wise investment, however, the stricter rules and less generous tax breaks have reduced the profit margins for mortgages. Even so, investing in buy to let properties can still yield decent returns. According to the totallymoney.com, the top 5 spots to invest are;

 Source –  http://www.totallymoney.com/buy-to-let-yield-map/

1st place – Liverpool -. The central L7 postcode of Liverpool, i.e., City Center, Fairfield and Edge Hill areas offer an average yield of 16.23%. The average asking price here is £350,000.

2nd place – Newcastle Upon Tyne – The postcode NE4 covers the areas of Wingrove, Fernham, and Westgate.

3rd place – Middlesbrough – TS1 is the Town Center.

4th place – Huddersfield – the area covered by the HD1 postcode.

5th place – Leeds – and its LS2.

 

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Invest in University Towns

But if you are a parent mulling over the areas to invest in to-let properties then consider the university towns of Oxford, Cambridge, London, Edinburgh, Manchester, etc. Investing here will not only board your child through college but also contribute to your retirement fund.

Oxford – Reports say that the buy-to-let market is thriving in Oxford. Due to the high net worth of the families and academics attracted to this town. Oxford will continue to offer a good annual yield and enjoy long-term capital growth. This town is home to the University of Oxford where the average property value is £473,724.

This is a 24.1% increase over the last 5 years. i.e., £92,136. The average asking rent per month is £1,963 which is 4.2% yield. The area has several Victorian houses and other essentials of student life such as cafes, bars, clubs, etc.

Cambridge has an average property value of £415,511 which is a 25% increase over the last 5 years, i.e., £82,847. The monthly asking rent is £1,135 which is 3.8% yield. The Mill Road in the south-east of the town is the best area to find buy to let options. The rent has seen a 15% rise due to a stamp duty on second homes. Besides many large corporations have moved here and can afford higher rents constricting the buy to let supply here.

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London has the Imperial College, the University College, the Kings College and the London School of Economics and Political Science. The average property value here is £634,724 this is an appreciation of 35.8% or £167,401 over the last 5 years. The yield is at 3.7% with monthly rents at £2,735. The properties are affordable in the developing neighborhoods of Woolwich and Deptford in south-east London and Stratford in east London.

Edinburgh – The average property value is £264,839 while the appreciation over the last 5 years has been 16%, i.e., £36,490. The average monthly rent is £1,269 which is 5.1% yield. Marchmont Leith on the seafront, New Town and Newington areas are close to the Edinburgh and Napier Universities.

Manchester – The average property value is £163,598 which is an appreciation of 17.7% over last 5 years i.e. £24,587. The monthly rent is £858 which is a yield of 5.4%. Fallowfield, Rusholme, Whitworth Street West, nd Withington are the traditional student hotspots.

You can find more info about real estate investing in the UK by visiting the Property Investor Network events page.