Manchester and Liverpool have been marked out as key northern cities to invest in when building up a property portfolio.
Manchester topped the list of best UK cities within which to be a landlord.
GoCompare recently launched an interactive tool which tells you the best areas to invest in. It includes data on average property prices, average yields and rental price growth. It also assesses the number of people in the city below the age of 35 as this group are considered prime tenants for landlords to focus on.
Following closely behind Manchester was London. Although rents are higher in the capital, yields may be slightly lower because of the initial purchase cost of properties in the capital, which is a factor to consider. Nottingham and Liverpool came in third and fourth place respectively in the list of cities in which to invest.
Manchester offered the highest average yield in the UK of 5.55 per cent with an annual rental growth of 5.76 per cent and a total of 5,545 properties available to rent.
London boasts 50,728 properties to rent, but has a somewhat smaller average yield of 3.05 per cent and annual rental price ‘growth’ is actually in decline at -1.12 per cent.
Stoke-on-Trent was discovered to be the least expensive area to buy with an average property purchase price of just £106,000. In contrast, Oxford offered much higher average property prices of £411,000. In the capital, the average price is £484,000.
In terms of annual rental growth, Manchester also came top at 5.76 per cent, followed by Leicester at 5.3 per cent and Cardiff at 5 per cent. Manchester also offered yields of 5.55 per cent, whilst Sunderland came in second place offering 5.37 per cent in yields. Liverpool also boasted sizable yields of 5.05 per cent per annum.
Source: Residential Landlord