19/04/2017
Research shows best locations in the UK for buy to let property investment...
http://www.propertywire.com/news/uk/research-show-best-locations-uk-let-property-investment/
Brexit, what Brexit? UK property investment seems as buoyant and solid as ever as if we never had heard of 'Brexit'!
Landlords have been battered over the last 12 months and the professional landlord will simply change tact, have a new strategy and still be in the game. This game is simple - find better yields and hold forever :)
As I've already said, property yield is the name of the game and has remained reasonably strong with supporting house price resilience. Rents have had to go up due to the new landlord tax changes namely Clause 24 according to the latest buy to let index from peer to peer property lender Kuflink.
As the article states...
"The firm’s analysis of average house prices and median rents in 50 major towns and cities across the UK show that since January 2017, average rental yields have remained strong, despite a dip in rents across the UK, in 34 out of the 50 locations.
House price growth has slowed, but prices remain fundamentally strong and Swansea saw the biggest increase in average property prices at £5,593, followed by Milton Keynes with an increase of £4,689. Although the South of England continues to see stronger house price growth than the North, the gap between the north and south is shortening, the research report points out."
Other cities and towns generally referred as the Northern Powerhouse and include Manchester and Leeds will see steady yields circa 6 to 7%.
Other places like Coventry, Belfast, Portsmouth, Birmingham, Edinburgh, Durham and even Fife in Scotland also show good yields of 5.64%, 5.46%, 4.92%, 4.9%, 4.88%, 4.85% and 4.54% respectively.
Not surprising though, in some Southern parts like Chelmsford in Essex provides the weakest returns of just 2.89% with Cambridge and parts of London showing averages of 3.17% but it's not exclusively just in the south as York, Chester, Doncaster, Derby, Wigan, Wolverhampton, and Carlisle also at the bottom with average yields of 3.17%, 3.28%, 3.38%, 3.41%, 3.44%, 3.44%, and 3.47% respectively.
Keeping to the Capital, parts of London like the borough of Barking and Dagenham shows a 5.3% yield followed by Newham at 5.19%, City of London 4.58%, Westminster 4.31%, Havering 4.28%, Tower Hamlets 4.12%, Merton and Hackney both 4.1%, Greenwich 3.93%, and Southwark 3.82%.
The richest boroughs are showing the poorest returns and include Kensington and Chelsea at 2.8%, followed by Hammersmith and Fulham at 2.9%.
So it seems the north and in particular the Northern Powerhouse is taking the lead here.
Naturally, if you are looking at HMO's (housing multiple occupancy), you can expect higher overall yields and this leads to doing more detailed research into finding the real gems of the areas that shows a good demand for this type of investment and doesn't correlate to the above single BTL (buy-to-let) hotspots!
Have a great week :)
Property investment in the UK remains solid despite Brexit with regions with strong rents and more affordable prices offering the bet yields for landlords, new research suggests. Overall rental yields across the nation have remained strong as house prices have been resilient to the decision to leave...
