Despite what many have claimed, the buy-to-let market is far from dead in the UK, and certain towns and cities are bristling with opportunities for property investors. By choosing your locations wisely, you can turn a considerable profit when purchasing property to let out to tenants.
The team at Totally Money recently conducted research to find out where the biggest buy-to-let yields can currently be found. Totally Money looked at late 2018 data from almost 600,000 UK properties to help landlords identify the most lucrative property hotspots. The best hotspots tended to be those located within close proximity to leading universities and were found in the north of England. London delivered the worst yields. The best performing area of the capital was East Ham, which offered an average of 4.81%.
Let’s take a look at five of the most advantageous places to purchase buy-to-let investment properties right now.
Leeds
The West Yorkshire city plays host to some four universities, with the University of Leeds now ranking amongst the world’s best 100. The LS6 postcode (yields of an average 7.43%) includes areas such as Hyde Park and Headingley, where generations of students have based themselves over the decades. Headingley is particularly sought-after by the student community due to its high-quality housing, transport links and wide range of bars and eateries.
Liverpool
Liverpool is home to approximately 70,000 students and a trio of universities. Aim for L7 (9.79%) for the best yields – this includes student hotspots like Liverpool city centre, Fairfield, Edge Hill and Kensington. L1 (9.33%) and L6 (7.85%) can also be very lucrative.
Manchester
Manchester has 100,000 students and four universities, with many students seeking accommodation in areas like Fallowfield, Rusholme and Moss Side. All three are part of the M14 postcode area (7.07%). M13 (6.89% ) is located near to The University of Manchester, which has the biggest student community in the UK.
Nottingham
Nottingham has two universities and approximately 37,000 students. 1 in 8 of the city’s people are currently enrolled as full-time university students. Investors can achieve the greatest yields by renting property in NG1 (11.99%) – a favourite amongst Nottingham Trent students. The NG7 postcode is not far behind with an 8.89% yield. 29.6% of the population are in the 18-29 age group. Nottingham is known for its excellent transport links and can be reached within an hour or two from various locations in the north and south of England.
The North East of England
The North East is home to a number of leading universities, with students from around the world relocating to study in Durham and Newcastle Upon Tyne. Whilst York is not officially regarded as part of the North East, it is a popular nearby choice amongst students relocating from Newcastle, Middlesbrough and Durham. The NE6 postcode offers the best yields in Newcastle (8.43%). Middlesbrough’s TS1 postal area delivers the third-best yield (9.45%) in the UK, whilst the SR1 region of Sunderland (7.53%) is the city’s most popular student base.
