So-Called Diamond Buy-to-Let Hotspots Revealed in the North of England
Rose Jinks - April 8, 2019
An investment portal has highlighted so-called diamond buy-to-let hotspots for landlords in 2019 – all of which are located in the north of England.
One & Only Pro has found that property investors can earn more than double the 8% yield currently aimed for by the average landlord, by using data more effectively.
It reports that, if investors identify the best deals in the best buy-to-let locations – rather than looking at the typical return for the whole area – they could secure net yields well in excess of 20%.
One & Only Pro has identified the proportion of diamond property investment opportunities in the UK’s top ten buy-to-let hotspots. The portal categorises investment deals as diamond if they receive a score of ten on the platform.
The top score out of ten means that the opportunity has the highest possible chance of increasing in value. The scores are calculated by One & Only Pro’s unique algorithm, which considers a range of key factors, data and metrics.
According to the data, the UK’s top ten buy-to-let investment hotspots are all located in the north of England, with Darlington, County Durham taking the top spot for the area with the highest proportion of diamond properties, at 22%.
The top five locations with the highest proportion of diamond properties is made up by Bootle, Merseyside (21%), Burnley (21%) and Blackpool (19%), both in Lancashire, and Washington, County Durham (18%).
One & Only Pro’s study has also revealed the average price of the top ten diamond properties in the selected areas, with Burnley offering the most affordable deals, at an average price of just £37,000, which is highly likely to increase in value.
Other diamond hotspots with low average entry level prices include: Bootle (£53,000), Darlington (£56,000), Grimsby (£56,000) in Lincolnshire, and Sunderland (£63,000) in Tyne and Wear.
When it comes to returns, the top performing area was Liverpool, with an average return on cash investment of 78.2% for one of the top ten diamond properties in the Merseyside city. The return on cash investment is based on buying a property with the best mortgage deal.
Other standout performers for One & Only Pro’s average return on cash investment on diamond properties in the top ten buy-to-let hotspots include: Sunderland (68%), Washington (62%) and Burnley (61%). All of the top ten register an average return on cash investment of more than 35% for their top ten diamond properties.
Henri Sant-Cassia, the CEO of One & Only Pro, says: “It’s shocking that people think buy-to-let is dead or is no longer a good investment, as the real data shows something completely different.
“One & Only Pro can highlight the highest returning properties in the best buy-to-let hotspots in seconds.”
He explains: “As we can see, investors in Liverpool can earn almost 80% return on investment. This figure includes the costs of buildings insurance, a gas safety check, service charges and ground rents, and it is all calculated automatically on our website.
“With this kind of return, savvy investors could have earned their deposit back within two years. In many cases, in the above locations, a property’s mortgage could be cleared from the returns within several years and you’ll then have full ownership over your investment.”
Sant-Cassia believes: “While some people have been delaying decisions due to Brexit, the shrewdest investors could already have earned enough income to purchase their next property.
“Where else could you invest and earn returns like this? What’s more, you have the backing of bricks and mortar, which will always have some kind of intrinsic value. As we know, stock investments could always get wiped out and be worth nothing.”
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