Savills has released a new report which outlines the best locations for buy-to-let investment opportunities.
The Spotlight Rental Britain February 2016 report looks at the shift in investor sentiment towards locations outside of London which offer a lower entry level and, in many cases, a higher yield.
The continual growth of rental markets in regional cities has made venturing outside the capital a good option for those looking to generate an income from residential buy-to-lets.
The report suggests that the UK’s rental market will expand by over one million households over the next 5 years, despite the government’s drive to increase homeownership.
The ‘mismatch’ between supply and demand is set to continue to push rental growth up, which Savills believes will attract investment despite the UK’s government’s planned changes to stamp duty taxes on buy-to-let property.
“We have analysed the fundamental factors driving the rental market. The 29 cities listed represent some of the most attractive cities for investment in the rental market, although opportunities will vary on a site by site basis. Manchester, Reading, Edinburgh and Bristol top our list because of their strong economic growth prospects and reputation as vibrant, desirable places to live. Whilst this is not an exhaustive list, we have also sought to highlight investment prospects in cities set to experience a significant housing shortfall, such as Oxford,” the report stated. Read full report…
The experts at Savills have pinpointed the 29 top regional cities. The below table shows regional cities which offer the ‘most attractive opportunities’.
Each city has been ranked based on their performance in four sets of criteria; economic performance, investment potential, housing supply and demand and how the location’s rental market has grown.
Liverpool and Leeds have been named in the report – two locations where Experience Invest currently can offer investors low entry level buy-to-let investments. Brunswick Street in Manchester is also available through Experience Invest.