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Top Ten Buy-To-Let Hotspots In The UK

September 18, 2014Article by Justin Aldridge

When you decide to become a buy-to-let investor it is important to do all the relevant research before venturing into property investment. Certain areas have a higher gross rental yield per year and if you’re willing to shop around, it is important to know where the buy-to-let hotspots are in order to get the best return on your property.

Highly populated areas are often more popular than towns and countryside, as these are often where the most jobs are as well, although surprisingly in the last few years countryside properties have provided higher yields so it really depends on the location. Here we’ll have a look at where the top ten buy-to-let hotspots are and why they are so popular. These results are based on findings of the first 6 months of 2013.

10. Postal Code EN8 – Hertfordshire

Offering beautiful views and a variety of different properties to choose from, the gross rental yield annually in Hertfordshire is around 8.7%. With an overall average house sale price of £365,715 and a rental average price of £1056 pcm for flats and £1946 pcm for houses, Hertfordshire is a pretty stable investment for first time buy-to-let investors.

9. Postal Code B18 – Birmingham

The city centre of Birmingham offers an annual 8.7% rental yield. House prices average on around £134,617, with an average rental price of £630 pcm. Houses produce a high yield because of the proximity to the city centre and the facilities it offers.

8. Postal Code RH4 – Surrey

With an average house price of £377,164, the area of Dorking in Surrey is cheaper than nearby areas such as Betchworth and Brockham and yields an annual return of 9.1%.

7. Postal Code L4 – Liverpool

North East Liverpool provides an excellent investment opportunity with an average asking price of £80,419 and an annual rental yield of 9.1%.

6. Postal Code B35 – Birmingham

With an average asking price of £106,396 and a rental price of around £590 pcm, the annual rental yield of Castle Vale, Birmingham is 9.2%. Castle Vale is well known for being a popular and well sought after area in Birmingham.

5. Postal Code TS1 – Middlesbrough

The average asking price for a property in Middlesborough is around £72,898 however this can drop to around £45,000 so this area is ideal for a first time buy-to-let investor with an annual rental yield of 9.2%.

4. Postal Code GU6 – Surrey

House prices in Cranleigh, Surrey average at around £431,832, cheaper than nearby Ewshurt and Shamley Green. With a wide range of country properties available, the annual yield for a house in Cranleigh is 9.5%.

3. Postal Code L14 – Merseyside

Houses in Merseyside average an asking price of around £115,093 and a rental yield of 9.6% per year. With Liverpool nearby, Merseyside provides an ideal investment opportunity for first time buy-to-let investors.

2. Postal Code TN28 – Kent

New Romney in Kent offers an average price of £192,724 for a property, cheaper than surrounding areas in both Littlestone and Greatstone. Annual rental yields reach around 10.5% in the area of New Romney.

1. Postal Code B7 – Birmingham

With an average house price of £106, 080 with many properties dropping below that, North East Birmingham has the highest rental yield last year with 10.6% annual rental yield. The average rental price is £600 with good investments ideal for larger families and student homes as many properties are 3 bedrooms and above.

Whether you are a veteran investor or a first time buy-to-let investor, research is always important. Take careful note of the rising and falling prices and plan your purchases accordingly.

Resources:

http://www.home.co.uk/search/property_by_town.htm
http://www.thisismoney.co.uk/money/mortgageshome/article-2402642/Top-buy-let-hotspots–Birmingham-Kent-Merseyside-best-returns.html
http://www.rightmove.co.uk/house-prices.html
http://www.rentalyield.co.uk/

 

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