New research claims to reveal the best current UK property investment locations for buy to let investors to enjoy the greatest returns.
The research, carried out by peer to peer lending platform Sourced Capital, shows that over the last five years, investment into the real estate, renting and business sector has increased by 48.4 per cent, one of the largest increases in the non-manufacturing industries behind just the ‘construction’ and ‘other service’ sectors in terms of performance.
Despite Brexit uncertainty hitting house price growth, coupled with changes to tax regulations and a hike in stamp duty thresholds for buy to let landlords, the UK property market has stood firm and remains one of the most consistent investment options available in today’s markets.
Nationally and Regionally
The nation offering the best current top-line yields is Scotland at 5.8 per cent, closely followed by Northern Ireland at 5.4 per cent, with England also coming in just above the UK average (4.1 per cent).
Regionally, the North East (4.9 per cent), Yorkshire and the Humber (4.5 per cent) and the North West (4.4 per cent) are home to the most favourable current rental yields.
The best buy to let spots in the UK
Scotland’s current buy to let pedigree is also clear on a local level, with 14 of the top 20 areas for current yields located north of the border.
Glasgow ranks top at present with yields hitting 7.8 per cent on average, followed by West Dunbartonshire (7.2 per cent) and Inverclyde (7.1 per cent).
Burnley ranks at number six and the best in England with the average rental yield currently at 6.6 per cent, followed by Belfast (6.4 per cent).
Other areas outside of Scotland to make the top 20 include Blackpool (5.9 per cent), Country Durham (5.8 per cent), Pende (5.8 per cent) and Hyndburn (5.8 per cent).
In London, Tower Hamlets is currently home to the highest yields at 4.7 per cent, followed by neighbouring Newham (4.6 per cent) and Barking and Dagenham (4.6 per cent).
Founder and Managing Director of Sourced Capital, Stephen Moss, commented: ‘One positive that can be taken from months of stagnant house price growth brought on by Brexit uncertainty is that rental yields have seen a boost due to a fall in property values coupled with consistently high rental demand and rental prices as a result.
‘We’ve already seen a Boris inspired bounce late last year with early signs that the market has ‘bottomed out’ and is once again on the up already in 2020. As a result, we’ve also seen an early flurry of investor activity as they realise now is a great time to get a foot in the door and secure a good deal before prices do regain momentum and the returns available start to tighten.’
Source: Residential Landlord