20 Jun

Buy-to-let landlords should look North

Buy-to-let landlords should look North

Property investors looking for affordable prices and good rental returns should consider properties based in the North, claims new research.

Data from Property Partner revealed buy-to-let landlords should be focusing their search for the right investment on areas that have reasonable asking prices, but strong average rents, as well as the potential for growth.

The top ten most efficient areas for investor landlords were in the North, with Stoke-on-Trent leading the way, followed by Oldham and Liverpool.

In contrast, buy-to-let landlords were encouraged to stay away from the most inefficient investment areas, which were based in the South and included Poole in Dorset, Central London and Sevenoaks in Kent.

“There is a clear North-South divide in the investment opportunities facing buy-to-let landlords. We have always been at pains to point out to investors that prime locations such as Kensington and Chelsea can offer some of the lowest yields available, because prices have raced ahead while rents have failed to keep pace,” explained Dan Gandesha, founder of Property Partner.

He added: “It just goes to show, you shouldn’t always follow the crowd and the right investment could be on your doorstep where there is far less overall demand.”

The analysis also focused on the average income, average property price and average rent for each area to produce potential yield figures. Leeds had the largest yield of all the 100 cities and towns examined in the research with 6.92 per cent, while the lowest yield was 1.94 per cent in Poole.ADNFCR-1222-ID-801837005-ADNFCR

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