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The top five UK cities to be a landlord
July 20, 2015Article by Clare Moorhouse
UK property investors looking for the strongest rental returns should head out of London and look to regional cities such as Manchester and Liverpool, according to the latest LendInvest Buy-to-Let Index. The report identified the top five UK cities that offered the best buy-to-let yields as Glasgow, Manchester, Birmingham, Sheffield and Liverpool.
The buy-to-let market in the North of England, particularly in hubs such as Manchester and Liverpool, is now being driven largely by money from London and the South East. Those who have previously made their money from London’s huge house price growth or those who now find themselves priced out of the London market, are seeking new investments outside the capital that will deliver strong rental returns as well as steady capital growth.
Manchester for example, has a thriving rental market, with both rental values and capital growth expected to increase in the next few years according to property consultancy, Jones Lang LaSalle. Rents currently average £975, but are predicted to rise by 9% in 2015 and 26.3% overall by 2019.
Manchester is the largest city in the UK outside London, with the largest university population in the country, enrolling a total of 38,480 students each year. As a result, demand for rental property in the city is understandably at an all time high, from both tenants seeking rental property and investors looking to make a purchase.
Salford Quays, home to the MediaCity UK complex where much of the BBC is now based, is one of Manchester’s foremost property hotspots. Property Frontiers is offering investors a selection of duplex apartments within the area, designed specifically for young professionals in mind. Ray Withers of Property Frontiers comments: “Custom Quay offers the ability to be at MediaCityUK within a short walk and central Manchester within about 15 minutes. This development is a rare find, offering investors up to 8.4% gross yield and capital appreciation expected to be strong over the medium to long term.”
Liverpool too is a top 2015 UK buy-to-let destination. With 51% of housing stock in Liverpool being in the rented sector and over £20 million worth of private rental income generated monthly, it’s no wonder that Liverpool was identified as the best region for buy-to-let returns. The city’s growing population of both domestic and international students means there is a continuing demand for rental properties in the area.
Property Frontiers’ buy-to-let apartments at Parker Street in Liverpool (now 100% sold) represent a unique low entry opportunity for those looking to get their foot firmly on the buy-to-let ladder.
To find out more about the best UK buy-to-let investment opportunities, contact Property Frontiers on +44 1865 202 700.