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Liverpool: still the hottest Buy-to-Let location

by Nikki Dale -

In A/W2017/18 independent credit-broker TotallyMoney’s buy-to-let yield property investment report saw the university cities climbing the table of top-performing postcode areas. And despite increasing pressure on diminishing margins, landlords could still see rental yields in excess of 12% in the best postcode area.

David Coates, REW founder & MD, adds “It is imperative that purchasers are aware of the best areas in the UK to purchase buy-to-let.  At REW we ensure that our clients are armed with all the facts they need.  We always look at UK hotspots where demand outweighs supply and also urban sprawls areas, for example, north Liverpool where the city is heading, opposed to south Liverpool.  We enjoy reading surveys like this one from Totally Money as it reinforces the areas we know will work and secure our clients the most lucrative investment”

Here are the key findings from TotallyMoney Buy-to-Let Yield Survey (AW17/18 Edition)

The TotallyMoney Buy-to-Let Yield Survey (AW17 Edition) named Liverpool L7 as the top postcode area for rental property return on investment. A combination of lower than national average house prices and relatively high rental costs driven by high demand have contributed to the 12.63% yield. The survey looked at more than 500,000 properties in 2700 postcodes across England.

Manchester, Nottingham, Sheffield, Glasgow, Cardiff and Plymouth, all university strongholds with large student bodies in need of affordable accommodation, also placed highly in the top 25 postcodes and delivered buy-to-let yields in excess of 7.25%.

In summary:

  • Liverpool’s L7 remains in top spot. The postcode covers City Centre, Edge Hill, Fairfield and Kensington and its proximity to two of Liverpool’s three universities makes it a favourite for student lets.
  • Liverpool postcodes also dominate the top 25 buy-to-let yield table, with 2008′s European Capital of Culture making up eight of the top 25 postcodes.
  • Home to the University of Plymouth, the PL4 postcode soars up the table from 15th to 4th (10.15% yield).
  • Middlesborough’s TS1 postcode is home to Teesside University and makes the top five with an average yield of 10.06% and an average property asking price of £64,500.
  • With four universities and a student population of 100,000, the Manchester rental market is strong. The city boasts two of the highest yields in the study, with 8.25% in the M6 postcode and 7.98% for M14, student favourite and home to the University of Manchester’s Fallowfield Campus.
  • Two Scottish postcodes make it into the top 25 of the buy-to-let yield table: Glasgow’s G3 (covering Anderston, Finnieston, Garnethill, Park, Woodlands, Yorkhill) and Aberdeen’s AB11 (covering the city centre and Torry).
  • No postcodes from London or the Home Counties make the top 25 BTL yielding postcodes
  • Central London postcodes make up 8/25 of the bottom BTL yielding areas.

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