Mortgage broker Private Finance named the country’s 20 most desirable buy-to-let hotspots, leaving London out of the top three entirely.
The study named Liverpool as the best location for buy-to-let investment, followed by Nottingham and Coventry.
Liverpool offers rental yields of 8% after mortgage costs have been taken into account, as the area benefits from a low average house price (only £122,283) as well as strong rents (average of £1,021).
The Midlands are home to the list’s number two and three. Nottingham offers average rental returns of 5.6% and buy-to-let investors looking at Coventry can gain back 5.4%.
New tram stops boost house prices in cities like Manchester and Birmingham
Greater Manchester, with a return rate of 4.3% and Portsmouth with 4.2% also made it into the top five.
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.”
