Rental yields are important for buy to let landlords, and research from Lendinvest has pinpointed the top nine areas in the UK for rental yields.
Current rental prices from Zoopla and purchase prices from the Land Registry have been used to calculate the most profitable areas for landlords to invest.
Manchester came top with an average renatl yield of 6.8 per cent. A major city with university and recent investment in infrastucture has made the city particularly attractive.
Perhaps surprisingly Coventry came in second place at 5.8 per cent. Prices have not risen as much, but that means bargains can be had and rental demand is strong.
Also on 5.8 per cent were both Luton and Outer London, which both show both strong capital gains and rental yields.
Another interesting factor is that of the top nine areas only one voted to remain in the referendum.
CEO of Lendinvest, Christian Faes, commented: ‘It’s very interesting that the top districts for rental yield, which are often found in the North East and North West, voted so overwhelmingly for Brexit.
‘Brexit may create opportunities for property investors, particularly professional and experienced ones. House prices are expected to soften, so some would-be buyers may put off buying. But they still need somewhere to live, which is good news for landlords. What’s more, if house prices do cool as predicted, then investing in property will become even more enticing.’
The top nine areas for rental yields according to Lendinvest are as follows:
6.8 per cent – Manchester
5.8 per cent – Coventry
5.8 per cent – Luton
5.8 per cent – Outer London
5.7 per cent – Blackburn
5.6 per cent – Oldham
5.6 per cent – Northampton
5.6 per cent – Cardiff
5.6 per cent – Sunderland
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