HSBC’s Top 50 UK Buy-to-Let Hotspots report shows that returns in the regions have outpaced London. Interestingly, the report shows that rental returns in Liverpool are stronger than the capital.
Due to lower property prices and strong local rental markets, many of the best performing locations are outside of London.
Newham was named as the best area in London for buy-to-let returns however, the average property in the area achieve a yield of 5.2% per annum.
On the other hand, where the typical rental yield stands at 6.56% in Liverpool and, with a lower entry level required, savvy investors could strengthen their property portfolio by investing in regional buy-to-lets.
The high street bank has compiled a list of the UK’s best performing location in terms of yield. Capital appreciation has not been factored into this report as any growth in the market cannot be relied upon.
Peter Dockar, head of mortgages at HSBC, says: ‘Landlords are reaping the benefit as young professionals say goodbye to capital living in favour of affordable commuter towns.
‘House prices in these locations – which are still out of reach for first-time buyers – are relatively affordable for landlords investing in property. The demand from young professionals has pushed up rents and driven up the returns.’
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