Liverpool is the UK’s top spot for buy-to-let rental yield, followed by Nottingham, Coventry and Greater Manchester, an analysis by Private Finance has found.
Liverpool offers a rental yield of 8% for landlords after mortgage costs have been deducted, and made it into the top position for buy-to-let investment in a recent study. Close followers were Nottingham with a yield of 5.6%, Coventry at 5.4% and Greater Manchester at 4.3%.
Goodbye London! Liverpool and Nottingham named as best areas for buy-to-let investment
The Private Finance report pointed out that landlords have been hit with some increased tax rates and stricter mortgage rules in recent years which makes it even more important to find an investment with a stable yield.
Only investors that manage to maximise their rental yield will see their investment grow as it helps them cope with rising costs.
Other good places to invest across the country are Cardiff, Blackpool and Lincoln, all averaging at a rental yield of 3.9% and then Bournemouth and Southampton with a yield of 3.8% and 3.7% respectively.
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The report, however, also suggests house prices and mortgage costs may be the bigger influencer when considering an investment. The study calculated rental yields in the 50 British towns and cities with the highest proportion of private rental stock. Six out of ten of the areas with the lowest property prices are also in the top ten list for the best rental yield.
Shaun Church, director of Private Finance, said:
“It’s not only the residential property market that’s all about location, location, location. Many landlords will treat property as a long term investment, looking for reward in the form of capital gain.”
