16 Jun

Birmingham revealed as buy-to-let hotspot

Birmingham revealed as buy-to-let hotspot

The city of Birmingham offers buy-to-let investors the best rental returns, according to new research.

LendInvest used data provided by Zoopla to discover the best regions of the UK in terms of rental yields over the first three months of 2015.

Four of the ten best rental yield areas in the UK were found in Birmingham, with landlords enjoying 13.6 per cent returns in postcode area B44, 11.9 per cent in B42, 10.5 per cent in B98 and 9.1 per cent in B23.

LendInvest also found buy-to-let investors saw strong returns on their investments in areas of Ipswich, Liverpool and Glasgow.

While rental yields in London did not beat Birmingham, areas of the capital are still offering the best overall returns on investment because of ongoing capital gains due to a strong property market - especially in Central and Northern London.

Jane Morris, managing director of Property Let By Us explained landlords often invest close to where they live, but looking elsewhere in the UK could be more profitable.

She added: "The Midlands provides a great investment opportunity as the property is much more affordable than the South East and the yields are high. For example, in Coventry a three-bed semi will cost around £125,000 and will provide rental yields of around 6.57 per cent.
 
"Many of the landlords that we work with are netting between 6.57 per cent and 9.1 per cent from their properties in Birmingham, Coventry and Nuneaton. My advice to any landlord looking to invest outside their area is carry out thorough research on property prices, rent prices and yields to ensure they make the right investment."ADNFCR-1222-ID-801791214-ADNFCR

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