Where are 2017’s buy-to-let hotspots?
By |Published On: 16th January 2017|

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Where are 2017’s buy-to-let hotspots?

By |Published On: 16th January 2017|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

A new investigation has revealed the latest UK buy-to-let hotspots, which include Manchester, Leeds, Cardiff and Liverpool.

Of course, the key to buy-to-let investment is to secure a solid rental yield and potential for capital growth through increased house price values.

Hotspots

Data from Aspen Wolf has revealed the latest buy-to-let hotspots to be in these locations. Oliver Ramsden, founder and director of Aspen Wolf, noted: ‘The UK property market stayed strong in 2016 despite a turbulent year, with confidence remaining in the buy-to-let sector in particular.’[1]

‘Rental growth increased but at a slower rate than 2015; this was to be expected however, notably due to the unexpected Brexit result stalling market movement for a short period,’ he continued.[1]

Mr Ramsden went on to say: ‘House prices should start to increase above the 3% mark again in 2017, especially in buy-to-let hotspots which we have identified.’[1]

The top-ten best buy-to-let postcodes were found to be:

Postcode Area Area Average value of property Number of sales in the last 12 months Current average asking price Current average rental price (pcm) Buy to let yield (%)
M Manchester £177,686 11625 £202,484 £1,339 7.94
CF Cardiff £187,337 12356 £173,850 £1,054 7.28
LS Leeds £225,551 10339 £204,072 £1,217 7.16
L Liverpool £164,590 6859 £175,641 £1,027 7.02
WS Walsall £195,383 4995 £193,944 £1,106 6.84
NE Newcastle upon Tyne £184,224 12850 £173,666 £873 6.03
S Sheffield £194,673 6693 £180,126 £888 5.92
G Glasgow £182,716 16454 £165,046 £786 5.71
B Birmingham £189,898 10396 £203,990 £921 5.42
SR Sunderland £134,891 2282 £133,028 £587 5.3
Where are 2017's buy-to-let hotspots?

Where are 2017’s buy-to-let hotspots?


Weak

On the other hand, London’s letting market slowed last year, with rents peaking during April.

Ramsden observed: ‘We forecast this trend to continue, especially within prime central London hence have identified West Central London or the WC postcode, as the top UK location to avoid in 2017.’[1]

The worst locations in terms of rental yields were found to be:

Postcode Area Area Average value of property Number of sales in the last 12 months Current average asking price Current average rental price (pcm) Buy to let yield (%)
WC Western Central London £936,660 Not available £1,486,208 £2,877 2.32
BR Bromley £547,661 4121 £633,812 £1,287 2.44
LD Llandrindod Wells £215,894 556 £247,659 £514 2.49
WD Watford £563,462 3147 £678,837 £1,452 2.57
SG Stevenage £414,561 5972 £476,816 £1,053 2.65
HR Hereford £267,871 2217 £306,503 £692 2.71
AL St Albans £595,386 3271 £667,922 £1,521 2.73
CB Cambridge £416,239 5322 £446,454 £1,020 2.74
EX Exeter £290,770 9139 £315,125 £736 2.8
WR Worcester £281,073 4254 £288,729 £674 2.8

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/the-best-and-worst-postcodes-for-buy-to-let-returns-unveiled

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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