The top locations to recoup your buy-to-let investment costs – property price and Stamp Duty charges – based solely on annual rental returns have been revealed by new research.
The study, commissioned by Benham and Reeves estate agent, found that Scotland is the fastest location to recoup your buy-to-let investment costs in the UK, for both property price and Stamp Duty charges, based solely on its average annual rental return, with the annual rent repaying costs in 17.7 years.
Northern Ireland was the second fastest, at an average of 18.9 years, followed by England, at 25 years, and Wales, at 26.4 years.
With Scotland and Northern Ireland home to the quickest returns on country level, it is no surprise that they account for the top three fastest areas to recoup your buy-to-let investment costs in the UK, with Glasgow coming out on top, at 13.3 years, followed by Belfast (15.8) and Aberdeen (17.8).
Nottingham was the fastest area in England to see rental income recoup the cost of investing in property, at an average of 18.4 years, with Newcastle close behind (18.5).
In London, Tower Hamlets was the best place to invest in buy-to-let for a fast return, with the annual rental income taking 21.4 years on average to recoup the typical buy-to-let investment costs of £452,821.
Barking and Dagenham (22 years), Newham (23), Greenwich (23.5) and Enfield (25.7) were also among some of the best options in the capital.
Marc von Grundherr, the Director of Benham and Reeves, comments on the research: “Buy-to-let investment is a complicated business, even more so given the changes to the sector of late, however, the primary indicator of a good investment is always going to be the rental yield available.
“While a buy-to-let investment includes all sorts of additional concerns, such as contingency budgets, capital growth and so on, we wanted to highlight on a more digestible level where offers a good investment option when it comes to recouping the cost of that investment via your rental income.”
He advises: “What this research demonstrates is that, while buy-to-let remains a lucrative business, despite the Government’s attempts, it should be viewed as a long-term one and not a method for making a quick buck. For those serious about the sector, whether it be as a professional or amateur landlord, it’s important to understand the commitment before diving in, if you wish to see a profit.”

Buy-to-Let is STILL one of the best investments you can make
Buy-to-let continues to deliver solid returns that beat many other types of investment. Even with reduced tax breaks, and the …

Spooky reasons for rejecting a house revealed by first direct, this Halloween
Just in time for Halloween, another report on spooky issues likely to frighten off potential house buyers has been released! …

Buy-to-let landlords urged to ‘ride out’ approaching recession
Landwood Property Auctions has advised property investors to sit tight during the potential recession that is upon us in the UK and …

Landlords should look north for strongest buy-to-let profits
Scotland and the North West have been highlighted as the most profitable areas for property investment in 2019/2020, according to …

Property development picking up in North of England, research shows
If you are a landlord looking for new investment opportunities, you may wish to look to the North. New research …