As investors, especially in property, the question everybody always wants to ask is where are the best cities for buy-to-let investors? That’s a valid question, but unfortunately one that can’t be answered specifically enough for most because each person and each investor’s circumstances will be different.
For some looking for quicker returns at a marginally higher risk, HMO’s are often the right pathway. For those looking for long term secure gains, residential buy-to-let is superior. Those that are looking at higher occupancy rates but a more niche market, should consider student property investment.
Having said all that, we can apply some basic logic and rules to the process. For example, if you’re buying a family suitable home as a buy-to-let investment, it would make sense to check the schools in the area.
If you’re investing in an apartment in an urban centre then things like broadband speeds and proximity to public transport are likely to be important.
One thing we can assess fairly objectively, however, is which areas in the UK offer the best rental yields.
As defined by Simply Business, ‘Rental yield describes your annual rental income, as a percentage of the total value of the property.
What are rental yields?
Rental yield is a useful way for buy-to-let investors and other landlords to determine whether or not their property is a good investment, and it’s also often used when calculating how affordable the buy-to-let mortgage would be.’
So rental yields, as you can see, are a useful tool to measure the returns and income you’re making from your property. As a working example, if you invested in a property for £100,000 and made £5,000 per year in rental income, your rental yield would be 5%.
Taking rental yields into account, where are the best cities for buy-to-let investors?
According to This is Money, who reported on a number of factors, Bristol is now on top of the rankings.
The best cities for buy-to-let investors
They calculated the rankings, according to their report, as ‘Factors taken into account in Aldermore’s rankings include the average rent, the rental yield, house price growth over the past decade, the number of vacant properties relative to the total housing stock, and the percentage of the city population that rents.’
Bristol came out number one, with Oxford second, Cambridge third, Manchester fourth, Luton fifth.
Much of the rest of the list was occupied by up and coming areas across the north west and north east of England.
If buy-to-let investment is something you’ve been considering then why not get in touch with one of our specialists today?
