Landlords looking for buy to let hot spot and no spots have new data to help them choose where to make their property investments.
Landlord insurance firm HomeLet has revealed the top and bottom 10 investment locations, based on searches carried out for landlords and letting agents.
The city with the highest increase in rents during the past 12 months is Leicester – where tenants are paying on average 45% more to rent a home.
The average monthly rent is £611 a month now, compared with £421 a year ago.
The worst returns are in Colchester, Essex. Just 12 months ago, landlords were receiving an average £708 a month for a buy to let home, but the figure has dropped by 24% to £539.
“The data points to some big differences in rental market performance in 2014 from city to city. The factor behind these differences is as simple as supply and demand. In Leicester and Cambridge, demand for rental property is outstripping supply and vice versa,” said HomeLet spokesman Martin Totty.
The top 10 places for buy to let rent growth in 2014 were:
- Leicester (45%)
- Southall, West London (38%)
- Cambridge (24%)
- Gloucester (22%)
- Chelmsford (19%)
- Swindon (18%)
- Central London (12%)
- Telford (10%)
- Ilford, East London (9%)
- Harrow, North London (9%)
At the bottom of the table as the places delivering the worst returns were:
- Colchester, Essex (-24%)
- Croydon, South London (-23%)
- Brighton (-18%)
- Romford, Essex (-12%)
- Manchester (-7%)
- Cardiff (-5%)
- Belfast (-3%)
- Huddersfield (-2%)
- Lincoln (-2%)
- Leeds (-1%)
“Last year was predominantly a year for growth in the rental market with rents on average 6.6% higher than the previous year. With property prices continuing to grow and mortgage criteria tightening, the renting represents a much more accessible option for home hunters than buying.” said Totty
“The demand for rental property is increasing, and we expect it to continue in 2015 as large numbers of people are priced out of buying.”
Top 10 HOT & NOT Spots for Buy-to-Let – http://t.co/fu0o98GoUW
— LandlordZONE (@LandlordZONE) January 20, 2015