University cities currently offer the best yields for buy-to-let landlords, a new study has revealed.
Data out today from TotallyMoney which identifies the UK’s best and worst buy-to-let yield postcodes, revealed Liverpool, Manchester, Middlesborough, Newcastle and Edinburgh as the top performers.
But the analysis of over 580,000 properties also revealed London was one of the worst areas with the north of capital, in particular, faring poorly when it came to rental yields.
Outside of London, Bournemouth’s BH14 and Crewe’s CW12 areas performed the lowest according to TotallyMoney’s statistics.
Joe Gardiner, head of brand and content at TotallyMoney, said: “With students flocking to university cities year after year and looking for a place to live, it’s no surprise the student market is a dependable one for landlords.
“Since so many students are looking for accommodation, landlords may use this as an opportunity to drum up competition between them.
“But, due to the tenant fee ban, changes in mortgage tax relief, and tighter buy-to-let lending criteria, rental profits are now being squeezed more than ever. To maximise their returns landlords need to be savvier and that’s where our map and mortgage comparison tool can help.”
The data comes just days after GoCompare unveiled a new tool to allow landlords to locate the best place to rent properties in the UK.
It looked at other factors as well as yield, including average property price, population under 35, number of properties available and rental price growth. It also took in the number of letting and maintenance agencies, new housing developments and properties currently available for rent.
GoCompare’s data identified Manchester as the best city to rent out a property. But London was in second position with the highest rates in all fields except yield.
It highlighted Stoke-on-Trent as the least expensive city to buy a property, with the average price coming in at £106,000. Oxford was one of the most expensive, with average prices at £411,000. However, the university made it an attractive prospect for landlords said GoCompare.