Location is key for the success of any buy-to-let (BTL) investment. It’s important landlords take the time to research property investment hotspots before taking the plunge.
A recent study by CIA Landlord revealed the most profitable cities to become a landlord in the UK. The research was based on ranking the average property price, mortgage cost, average rent and the monthly costs associated with being a landlord in order to calculate profit.
Brighton took top spot with landlords earning an average monthly profit of £668.95. London followed in second place with £570.22. However, it’s important to note that these two cities are home to by far the most expensive average property prices in the top 10 most profitable UK cities to become a landlord.
High yields and low entry prices in Leeds
Cities in the north of England often provide the best of both worlds with high profits and lower entry prices. Leeds comes in as the third most profitable UK city to be a landlord in. It’s also the top city in the north with an average monthly profit of £432.29 and an average property price of £189,738.
The Yorkshire Powerhouse provides investors and landlords with more affordable opportunities, especially when compared to the average price in Brighton with £365,250 and London with £475,458.
Potential to earn capital growth
With Leeds continuing to grow and demand in residential property increasing across the city, property prices will also rise, according to forecasts. This will provide landlords with a chance to earn capital growth as well. Yorkshire is even forecast to see property prices increase by 21.6% in the next five years, according to Savills.
As more investment continues to come to Leeds, there are increasing prospects in the thriving city. This is boosted as more businesses and young professionals move to the area. There are several upcoming improvements and developments coming to the city centre, too. This means the property sector, especially the rental market, should continue to soar in this northern city.
BuyAssociation recognised the value of Leeds as a strategic and profitable property investment location many years ago. Find out more about our available opportunities on our property investments page.
