Posts with tag: buy-to-let hotspots

Liverpool Named the Top Buy-to-Let Spot for Rental Yields

Published On: June 12, 2017 at 9:46 am


Categories: Landlord News

Tags: ,,,

Liverpool has been named the top buy-to-let spot, delivering landlords average rental yields of 8%, once mortgage costs have been taken into account, found new research from Private Finance.

Liverpool Named the Top Buy-to-Let Spot for Rental Yields

Liverpool Named the Top Buy-to-Let Spot for Rental Yields

As house prices and mortgage costs have the greatest influence on rental yields, Liverpool takes the top spot as it has a combination of a low average price (£122,283) and high rent (£1,021 per month).

Nottingham came in second, with a rental yield of 5.6%, followed by Coventry at 5.4%, Greater Manchester at 4.3% and Portsmouth at 4.2%. Cardiff, Blackpool and Lincoln are next, with rental yields of 3.9% each. Bournemouth and Southampton complete the top ten, with rental yields of 3.8% and 3.7% respectively.

According to the study, which calculated rental yields in the top 50 UK towns and cities with the highest proportion of private rental housing stock, six of the top ten areas with the lowest house prices are also in the top ten list for best rental yields.

Within the top ten buy-to-let spots, average annual interest-only mortgage costs vary significantly, from £5,940 in Blackpool to £13,548 in Bournemouth.

The Managing Director of The Mistoria Group, Mish Liyanage, comments: “Faced with increased taxation and tougher mortgage lending criteria, it’s so important for landlords to ensure they invest in properties that will maximise rental income and minimise void periods.

“Student property gives good returns on investment, as it delivers high yields and full occupancy. There is huge demand for shared student accommodation near the four universities and, with a student population of around 60,000 and 60% of them requiring accommodation, Liverpool is great place to invest.”

He advises: “Increasingly, investors are looking for new and renovated property for the sole purpose of the university students, many of whom want to live in affordable, shared accommodation. Over the last 12 months, student rents in the city have risen by 23% and now sit at an average of £128 per month, as of May 2017.

“HMO [house in multiple occupation] student accommodation gives landlords much higher yields than a three-bed, single-bed property or a student pod. HMO properties can generate this significant increase in revenue because they are rented out to individuals on a room-by-room basis. HMOs often provide between four and ten rooms, rented to individual tenants. Rent will typically include the internet, general utility bills and Council Tax.”

Have you been tempted to invest in Liverpool?

Southeast London set for Transport Boost, Creating Investment Hotspots

Published On: March 28, 2017 at 10:11 am


Categories: Landlord News

Tags: ,,,,

If you’re planning a future property investment, it pays to know about upcoming transport plans and improvements. Those considering the capital should look to southeast London, where a transport boost is planned.

So where are the key investment hotspots in southeast London?

£220m investment in Beckenham, South Norwood and Lewisham 

The Mayor of London, Sadiq Khan, is handing out a huge £220m for local transport and regeneration improvements in southeast London.

Southeast London set for Transport Boost, Creating Investment Hotspots

Southeast London set for Transport Boost, Creating Investment Hotspots

Several major projects have been outlined to begin in 2017/18, including a £1m refurbishment of Beckenham town centre, creating greener and safer cycle paths in South Norwood, plus improving the junction of Sangley and Sandhurst Road in Lewisham.

The Sales Manager of Portico London estate agent, Tony Chryseliou, comments: “The Mayor’s plans will certainly improve southeast London’s desirability as an up-and-coming place to live.

“We’ve seen house prices in central London reach an inconceivable peak in the last few years, causing many people to reassess just how centrally they need to live. Subsequently, areas like Beckenham and Lewisham are starting to appeal to a much wider range of buyers – and there’s still room here for price growth too.”

This pocket of southeast London is an attractive buy-to-let hotspot too, with investors still keen to secure property investments in the area, despite higher Stamp Duty and forthcoming tax changes.

Landlords can find a strong 4% yield in Beckenham, with certain areas even higher, such as Wickham Road at 4.3%.

And yields are even higher in Lewisham, where landlords can secure a 4.5% yield in the area around Lewisham and Ladywell Station, and a 4.8% yield in the Deals Gateway area around Deptford Bridge Station.

In comparison, landlords looking to invest in central London can expect much lower yields of around 3%.

Extending the Bakerloo Line

Southeast London’s popularity is already on the rise, and Transport for London is now proposing an extension of the Bakerloo Line beyond Elephant and Castle to Lewisham, serving Old Kent Road and New Cross Gate.

The new route would include four new stations – two on the Old Kent Road, another at Lewisham, and one more at a key interchange at New Cross Gate.

If the scheme is given the go-ahead and funding is secured, construction could start in 2023, with services aiming to be running by 2028/29 – so there’s a fantastic long-term opportunity for investors here.

Will you be looking to southeast London for your next investment?

Where are 2017’s buy-to-let hotspots?

Published On: January 16, 2017 at 10:45 am


Categories: Landlord News

Tags: ,,,

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.


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?


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


Buy-to-Let Lender Expands Sales Team in North of England

Published On: September 5, 2016 at 9:33 am


Categories: Finance News

Tags: ,,,,

Buy-to-let lender Foundation Home Loans is continuing to expand its sales team in the north of England, confirming the strength of the property market for landlords.

The firm has recently appointed Joanna Elton as the Regional Account Manager for the north of England.

Buy-to-Let Lender Expands Sales Team in North of England

Buy-to-Let Lender Expands Sales Team in North of England

Elton will take on responsibility for building key partnerships with Foundation Home Loans’ distribution partners in the north, working under the Business Development Director, Paul Brett.

Elton has a host of experience in the mortgage industry, after starting her career at Mortgage Trust as a New Business Administrator. She moved into account management when the company rebranded as First Active.

Her career then took her to Kensington Mortgages and Scottish Life Mortgages, where she stayed for a few years, before moving onto Mortgage Next as a Regional Account Manager for five years.

In 2010, Elton joined Sun Life as a Regional Account Manager, before moving to London and Colonial, and then Curtis Banks. Before her appointment at Foundation Home Loans, Elton was a Business Development Manager at Mortgage Intelligence.

Brett comments: “Joanna brings with her a strong background in business development and relationship management, and we are delighted to have her on board. Her role will be to enhance existing distribution partner relationships as well as maximise the opportunities for new business and develop fresh sources.

“We have identified that the buy-to-let market in the north of England holds particular opportunities for landlords and their advisers. Joanna is an ideal ambassador for Foundation Home Loans’ buy-to-let proposition.”

Landlords looking for new investments may find that the north of England is offering strong capital growth in the current market, as house price rises outpace London for the first time in years. Recent research by Hometrack also suggests that growth is showing no signs of slowing down.

In addition, a new study from Property Partner insists that cities in the north of the country are offering the highest yields for landlords of student properties.

Is the north of England proving a buy-to-let hotspot for you?

Where to Buy Along the Crossrail Route

Published On: May 23, 2016 at 10:03 am


Categories: Property News

Tags: ,,,

We’ve all heard of Crossrail and the Elizabeth line, but if you’re searching for your next investment hotspot, where should you buy along the route?

Recent reports from Rightmove claim that asking prices along the Elizabeth line have surged by up to a third in the past 12 months alone, and they’re continuing to rise. Analysts predict that the average house price on the Crossrail route will increase by £133,000 between now and when the line launches in 2018/19.

If you’re looking for a lucrative location to invest in, here are the top spots:

Forest Gate

On the southern edge of Epping Forest, neighbouring Stratford and Leytonstone, is Forest Gate. The area has experienced a significant level of gentrification over the last few years, thanks to the Olympic Games and the Westfield shopping centre. Now, the forthcoming arrival of Crossrail is gentrifying the district even further.

Its transport links are definitely appealing to prospective buyers. The Overground takes commuters to the City of London in just 13 minutes, while the Crossrail route will transport locals to Tottenham Court road in 17 minutes.

The zone 3 location boasts a heap of affordable, Victorian houses and is a popular spot for landlords and first time buyers. The average two-bedroom house price is £275,000. London estate agent Portico expects property prices to rise by 10% by the time Crossrail is complete.

Where to Buy Along the Crossrail Route

Where to Buy Along the Crossrail Route

Tottenham Court Road

Named the epicentre of Crossrail, house prices around Tottenham Court Road have soared by 20% since work on the station began. The area is currently undergoing a huge £1 billion redevelopment project, which will deliver new residential, office and retail space, new squares, paths and greenery, and attract new businesses and customers.

Due to the recent Stamp Duty hike for buy-to-let landlords and second homebuyers, prices have stabilised in the area. However, Portico still predicts slight growth of between 2-5% over the next two years.


Farringdon is set to become one of Britain’s busiest train stations when Crossrail arrives, as it will be the only station from which passengers can reach all three London airports, along with Thameslink and Underground trains.

The Sales Manager of Portico’s Bloomsbury branch, Lucy Adamson, says: “Investing in central London in the areas around Tottenham Court Road such as Fitzrovia and Bloomsbury and towards the City in Farringdon have not been considered risky but rather stable in terms of the potential for assured capital growth in recent years, increasing on average by 5% every year in value.

“The Farringdon area guarantees to produce a good return in rental income, due to the continuously increasing demand to live in central areas close to the commercial and transport hubs and universities – and landlords in the area experience, on average, only one week void period between tenancies.”

The area’s desirability is being driven by Crossrail, which will improve connections to the hotspot from outer London and encourage further investment and economic growth.


The areas on the western part of the Elizabeth line have seen huge house price growth, thanks to regeneration and shorter journey times. Infrastructure and redevelopment are making a real difference to Acton, and there are some extremely desirable places to live, such as Poet’s Corner, the Mill Hill Conservation Area, or anywhere along the Bedford Park borders. The area directly around the imminent Crossrail station is also highly sought-after.

Many savvy buyers have already purchased properties in Acton, which has an average two-bed house price of £400,000. Portico expects values to increase by 15-20% by the time Crossrail is complete.


Crossrail will finally put Ilford on the Tube map! Although it is not traditionally an elegant place to live, it is certainly becoming gentrified as a result of the new transport plans. New build apartments, trendy eateries and bars are popping up in the east London borough, signalling a wave of new buyers coming into the area.

It is one of the best value spots in London, with an average two-bed house price of just £280,000 – despite values rising since the announcement of Crossrail. Ahead of the line’s completion, Portico forecasts further price rises of 10%. It believes the area will prosper as a result, making it an ideal location to both live and invest in.


Romford is increasingly becoming a popular choice for homebuyers, as many are driven out of the capital by soaring house prices. The Essex town offers affordable housing (an average two-bed price of £227,000), a quick commute (trains to Liverpool Street take 20 minutes), and a series of fashionable cafes, delis, bars, and independent shops and boutiques.

House prices have already hit record highs in the area due to infrastructure plans, but Portico expects them to surge even further until Crossrail is fully operational in 2019.

Where will you invest?

The Top 8 Spots to Invest in London

Published On: May 14, 2016 at 8:00 am


Categories: Landlord News

Tags: ,,,,

As the new Mayor of London, Sadiq Khan, is focusing on tackling the shortage of housing in the capital, now is a great time to get a slice of the action.

With two million private tenants currently residing in London, demand for good quality homes from good landlords is set to remain strong.

London estate agent Portico has put together a list of eight buy-to-let hotspots that should deliver both high rental yields and strong capital growth in the future.

  1. Acton

Although Crossrail – the new high frequency railway from London to the South East – isn’t set to launch until 2018, the east-west line is already forming property hotspots along its route. Portico expects property prices to have risen by at least 15-20% in Acton by the time the Elizabeth Line is complete.

Additionally, the nearby Old Oak Common is due to become a hub for Crossrail and High Speed 2. With the regeneration project likely to have a positive impact on the surrounding areas, Acton’s popularity with renters is set to surge.

  1. King’s Cross

Following recent large investment projects in the land just north of the station, King’s Cross is fast becoming a new hotspot for commercial and cultural activity.

The Bloomsbury Senior Sales Consultant at Portico, Lucy Adamson, looks at values in the area: “Property prices are starting to reflect the area’s growing popularity, and the new luxury flats in the recently completed Plimsoll Building are selling upwards of £1,400 per square foot, which is a record high for the area. This is starting to have a positive ripple effect on the surrounding areas as a whole in all directions: north towards Caledonian Road, east towards Angel, and south towards Bloomsbury.

“There are still many opportunities to invest with a view to solid capital growth during the next five to ten years, as further exciting projects are completed, including Google’s headquarters, the large Francis Crick Institute medical research centre, and various other head offices for well-known brands, such as New Look.”

She adds: “I also anticipate that the demand from professional tenants for high quality housing in the local area will sky rocket as a result of the new jobs generated. All of this will add to the existing fact that King’s Cross is in a fantastic central location with one of the best stations for access to multiple transport links across all of London, a connection to mainland Europe in only a few hours via the Eurostar, and all within walking distance of the West End.”

  1. Elephant and Castle
The Top 8 Spots to Invest in London

The Top 8 Spots to Invest in London

Traditionally not the most appealing place to live, things are now changing in Elephant and Castle. Currently going through a £3 billion redevelopment, the landscape in the area is set to be transformed. Both the Heygate council estate and outdated shopping centre will be demolished to make way for 1,200 new houses and around 2,500 new apartments and shops. The regeneration will also involve a new pedestrianised town centre, market square, an integrated public transport hub and new green spaces.

Portico’s Dulwich Sales Manager, Tony Chryseliou, expects property and rent prices to slowly rise in the area: “Elephant and Castle is definitely an up-and-coming hotspot. Several new luxury developments are being constructed as part of the large-scale regeneration project, which are attracting a younger, more affluent demographic to the area.

“It’s also on the cusp of zone 1 and has excellent transport links to the Square Mile, so it’s better to buy now while prices are relatively affordable.”

  1. Oval/Stockwell

It’s good news for Battersea – the area is getting the Tube! The Northern Line is set to be extended to Battersea, with two new stations at Nine Elms – London’s biggest regeneration zone – and Battersea Power Station by 2020. The long-term plan is to extend the Northern Line even further to Clapham Junction, which will likely push up prices in the area even further.

Luke Parle, the Battersea Sales Manager at Portico, comments: “Nine Elms and the new build market in Battersea has taken a bit of a hit recently, possibly as a result of an influx of new builds being offered to the market in one go. This is, however, having a positive outcome for pre-owned homes, specifically anything that is older than 50 years. People who can’t afford new build stock are buying up the older stock in anticipation of long-term capital growth in the area once the new build projects have been finished (circa 2020).”

Although Nine Elms has been hit recently, Oval and Stockwell have really benefitted from being close to the redevelopment zone. Transport links in both areas are great; the only thing that has previous held both spots back is the lack of amenities. However, both have seen a flood of fashionable new cafes, shops and bars open up recently.

  1. Streatham 

Homebuyers are flocking to Streatham, which is much more affordable than nearby Clapham and Balham, and has excellent transport links to London Victoria and a range of good schools.

Over the last 12 months, house prices have risen by 10%, with Portico forecasting a further 5% increase over the second half of the year.

Streatham Hill is also fast becoming the buy-to-let capital of south London, with average rental yields of 4.4%.

The Managing Director of Portico, Robert Nichols, says: “Landlords are now looking at Streatham Hill for a strong return – an area gaining the nickname the Clapham Overflow. Although the area is still cheaper than Clapham, the price divide is getting smaller and we are seeing a large number of renters move into the SW2 area because Clapham has become unaffordable for some.”

  1. Brixton

Brixton became popular as a cheaper alternative to neighbouring Clapham, but now buyers and tenants are moving here because they love it. Not only is it more affordable, but it’s also in zone 2 at the end of the Victoria Line. Brixton is one of the most gentrified spots in London, filled with modern eateries, bars and boutiques. However, locals can still enjoy the cultural treats found within its famous market. The average price of a one-bedroom home here is now around £400,000, with prices set to rise by a further 5% this year – so get in quick!

  1. Archway

While Archway is still a lot cheaper than its north London neighbours, the Camden Sales Manager at Portico, Stephanie Powell, expects prices to increase by at least 5% this year.

Last month, Transport for London (TfL) began work transforming Archway by removing the much hated one-way system in the area, and replacing it with two-way traffic lanes, improved pedestrian crossings and a new central piazza. Work is due for completion by 2017.

  1. Tottenham Hale

Despite having a bit of a rough reputation, Tottenham Hale is becoming a first time buyer hotspot. But there will always be those who cannot afford to buy and must rent instead.

It is still a fairly cheap area to buy and rent – a one-bed property would cost around £300,000 or £1,400 per month. Plus, you can get to the City of London in less than 15 minutes on the Tube and regeneration is starting to smarten up the area.

Tottenham Hale is also undergoing a transport revival, with £110m being spent on a new Tube, rail and bus station, road network improvements and public realm works, which will be completed by 2017. It may also receive a Crossrail 2 station, which would push prices up by a further 10%. Now is definitely a good time to buy!

If you do decide to become a London landlord, make sure you remember to stick to the law and avoid being put on Sadiq Khan’s new rogue landlord database!