Manchester ranks the highest city in the new GoCompare comparison tool’s city ranking hierarchy, with the city coming out as the best place to rent out a house. The tool gives an average rental yield of 5.55%.
The finding come from an interactive tool launched by GoCompare, that allows users to compare two different cities showing the best option for buy-to-let.
The tool compares cities across data points, including average property price and rental yields, population under 35, number of properties available, number of letting or maintenance agencies, number of new housing developments, properties currently available for rent and rental price growth.
Analysis by towns, the tool makes Stoke-on-Trent the least expensive area to buy property with an average property price of £106,000.
At the other end of the scale, Oxford comes out one of the most expensive cities to buy a rental property with an average price of £411,000.
But at the top of the scale, as expected, London has highest prices, averaging £484,000, therefore giving the lowest yield of all the cities.
In terms of rental price growth, Manchester again takes the first position, with growth of 5.76%, Leicester in second place at 5.30%, and Cardiff in the third position with an average growth of 5%.
The GoCompare tool puts Manchester in top position for rental yield at 5.55%, Sunderland in second place at 5.37%, and Liverpool in third place with an average yield of 5.05%.
However, investors should be wary of statistics such as these as prospects in cities can change quite rapidly. For example, a brief visit to a city like Manchester would reveal the sheer amount of new development that is going on. Once hundreds of new apartments come onto the market the rental market balance could change considerably.
As always, any new investment should be preceded by thorough research.
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Source: GoCompare / Mortgage Solutions
Image – Hilton, Manchester