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Liverpool and Manchester prove best bets when it comes to buy-to-let
March 10, 2015Article by Charlotte Ashton
New data has revealed Liverpool and Manchester to be two of the best buy-to-let locations in the UK when it comes to income yield. With a growing body of investors focusing on strong yields as their goal (with capital growth seen as an additional bonus), such knowledge is becoming increasingly important in the competitive race to snap up the best buy-to-let properties that the UK has to offer.
A changing game
Ray Withers, Chief Executive of specialist property investment company Property Frontiers, comments,
“The buy-to-let market has really matured over the past couple of years, as have investors’ expectations and knowledge. It’s not about flipping properties for short-term gains – many investors are now planning to hold their properties for the medium to long term and to enjoy income yield over the years. With pensions freedom day on the horizon as well, this class of investors looks set to expand further, as pensioners look to property to provide them with a regular income during their retirement.”
The new data, compiled by Savills based on Rightmove asking prices and rents for Q4 2014, has highlighted a number of UK cities as providing strong yields. Top of the list comes Manchester, with indicative yields for a two bedroom apartment of 6.67%. Next is Salford, with an indicative yield of 6.26%.
As ever, Property Frontiers is ahead of the game, with its stunning waterfront development, Custom Quay, enjoying a prime location in Manchester’s Salford Quays. With 60 apartments, uniquely designed duplexes and mews homes spread across two buildings, the site is set to offer premiere accommodation in this popular area, with investors enjoying healthy yields of 6.5% with full management option. Prices start at £126,000, with 75% LTV finance available.
Some love for Liverpool
Liverpool also featured in the new data as a key UK buy-to-let location, with indicative yields of 5.97% for a two bedroom apartment and of 5.81% for a three bedroom apartment (with only Manchester and Newcastle performing more strongly in the three bedroom category).
Again, Property Frontiers is at the heart of the action, with its Parker Street city centre apartments in the sought after L1 postcode area already attracting considerable attention. Investment is from £64,950 to £99,950, with mortgage finance LTV of 60%+ and 6% net yield assured for five years.
Ray Withers concludes,
“We work hard here at Property Frontiers to ensure that the properties we offer to our clients are in the best locations, so receiving external affirmation of our success in doing so is always great news. The new data from Savills highlights Manchester and Liverpool as two of the best bets on the market right now so far as buy-to-let locations in the UK are concerned and we are expecting 2015 to be a great year for both cities.”
For more information on buy-to-let opportunities in leading UK cities, contact Property Frontiers today or call +44 1865 202 700.