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UK property investment news and trends

Liverpool has been named in joint first place as the best place to invest for individuals interested in entering the UK’s buy-to-let sector this year.

According to the latest analysis from mortgage broker Private Finance, Liverpool and Nottingham hold equal first position in terms of offering outstanding rental yields for investors in the current financial climate.

The figures show an equal return of 6.2 per cent for both Liverpool and Nottingham, while Cardiff stands in third place with an average yield of six per cent. Other notable entrants to the rankings were Southampton, Manchester, Coventry and Edinburgh.

Overall, the average net rental yield in the UK’s best-performing buy-to-let markets right now was shown to have increased by 0.9 per cent during the last year. It therefore highlights a significantly attractive area for investors to place their focus in the coming months.

The main driver of this upward momentum in rental yields was shown to be ongoing strong demand for homes by tenants in many parts of the country, with Liverpool in particular seeing above average growth.

Understanding the dynamics driving upward growth in demand is therefore integral for investors hoping to make a savvy investment, but this is not always easy to achieve.

Indeed, outlining the challenges faced by investors in the UK buy-to-let sector at present, director of Private Finance Shaun Church explained: “Finding the right buy-to-let location is a careful balancing act.

“Too large an initial investment makes it difficult to achieve a healthy yield, but landlords must also be confident that property values will appreciate at a higher rate than mortgage borrowing to achieve a long-term profit. Strong rental demand is also key to prevent lengthy void periods that can damage affordability.”

A focus on the UK’s up-and-coming rental hotspots can therefore be essential for success, with investors in the Liverpool market in particular now expected to see positive gains in the year to come.