Sunday, March 29, 2020

Go To A University City For Best Buy To Let Yields

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Britain’s best buy to let yields come from shared homes in university cities, according to new research.

Despite financial pressures from rising mortgages and the tax man, landlords can expect returns of more than 12% a year.

The top postcode for buy to let is Liverpool’s L7, where low house prices and high rents have pushed average yields up to 12.63%. The zone covers the city centre and is near to two of Liverpool’s three universities.

Liverpool also has eight more postcodes in the nation’s top 25 buy to let hot spots.

Other popular university cities, such as Manchester, Nottingham, Sheffield, Glasgow, Cardiff and Plymouth all deliver buy to let returns of more than 7.25%, according to a study by financial web site Totally Money.

Landlords need to know facts about where they invest

Joe Gardiner, head of the company’s brand and communications, said: “Realising a decent return on a buy-to-let rental property is becoming increasingly difficult. Property prices continue to rise steadily, albeit more slowly, and rule changes have made lenders more cautious.

“Prospective landlords need to go into property investment armed with the facts: they need to be on top of their credit report, compare the market for the best buy-to-let mortgage rates and focus on property investment in areas that can give them the highest yield.

“The buy-to-let hotspots postcode map pinpoints postcodes and gives landlords a solid steer towards the opportunities that university city student lets offer.”

Besides Plymouth, all the highest rental returns are in the Midlands or North, while Central London grabbed eight of the 25 worst performing postcodes.

Check out the full report with interactive maps

Top 20 Buy to Let Postcodes

Rank Postcode City Yield
1 L7 Liverpool 12.63%
2 L6 Liverpool 10.57%
3 L15 Liverpool 10.29%
4 PL4 Plymouth 10.15%
5 TS1 Middlesbrough 10.06%
6 PR1 Preston 10.04%
7 DY5 Dudley 9.57%
8 NG1 Nottingham 8.91%
9 BD1 Bradford 8.84%
10 L1 Liverpool 8.61%
11 L3 Liverpool 8.47%
12 NE6 Newcastle 8.41%
13 HD1 Huddersfield 8.32%
14 M6 Manchester 8.25%
15 LS6 Liverpool 8.19%
16 S2 Sheffield 8.07%
17 NE1 Newcastle 8.02%
18 L5 Liverpool 7.99%
19 M14 Manchester 7.98%
20 SR1 Sunderland 7.87%

Source: Totally Money

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