As we pass the halfway point of 2022 and the end of the summer, attention understandably starts to turn to investment planning for the remainder of the year and beyond, and one of the most common questions we get asked is, where are the best places to invest in buy-to-let properties?
It’s certainly been a crazy few years, and since 2019 records have continued to be broken for price growth and activity across the sector, with capital gains, yields and rental income all growing substantially despite a global pandemic and economic issues along the way.
Indeed, across the years spanning 2020-2021 and 2021-2022 house price growth averaged somewhere around the 10% mark for consecutive periods.
It’s unlikely that house price growth will continue quite at the same rate, considering the end of government schemes and large-scale activity post-pandemic, but most industry experts are predicting around 7% growth for the year.
With that in mind, where are the best places to invest in buy-to-let properties around the UK?
Best places to invest in buy-to-let properties
Hotspot status is understandably debatable, and many have different definitions of such a term, so for the purpose of our list here, we’re looking at the places across the UK with the highest yields
According to Track Capital; the list contains mainly cities and towns across the north or midlands in England, rather than across the south or south west.
In first place is Nottingham, with yields of about 11%. The up-and-coming midlands city has been rising in the rankings for landlords for some time now, and with a growing student population as well as good transport links to other hubs across the midlands such as Birmingham and Derby, it’s an ideal place to invest in buy-to-let property.
In second place is Bradford, perhaps surprisingly, with yields of over 10%. That being said, the city has been attracting fresh investment and new young professionals into the area recently thanks to a big drive by the local authority to boost business and investment, as well as encouraging landlords to purchase property to be able to ease the rental property shortage.
In third is Manchester, leading the way for some time, offering similar yields to Bradford at over 10%. Property across the Greater Manchester area has been bringing in a lot of investment recently, and areas such as Stockport, Bury and Rochdale are now seeing large activity, having seen investors fan out from the city centre as renters do too.
Bringing up the rear on the top investment spot lists, but by no means the loser of the bunch, is Newcastle, offering yields of 9.8%, only slightly below the others on the list. The northernmost city on the list, Newcastle, often considered the capital of the north east, also has a large and growing student population with lots of outside investment growing the city to new levels.
If you’re interested investing in buy-to-let property in any of these cities and beyond, why not get in touch today?
