Liverpool is the UK’s top buy-to-let hotspot, delivering landlords average rental yields of 8%, once mortgage costs are taken into account, according to new research from Private Finance.
As housing and mortgage costs have the biggest influence on yield, Liverpool takes the top spot as it has a combination of low average house prices at £122,283 and strong rents at £1,021 per month.
Nottingham comes second, with a rental yield of 5.6%, followed by Coventry at 5.4%, then Greater Manchester at 4.3% and Portsmouth at 4.2%. Cardiff, Blackpool, Lincoln are next with rental yields of 3.9% each. Bournemouth and Southampton make up the rest of the top 10 with rental yields of 3.8% and 3.7% respectively.
According to the research, which calculated rental yields in the 50 UK towns and cities with the highest proportion of private rental housing stock, six out of 10 of the areas with the lowest house prices are also in the top 10 list for best rental yields. Within the top 10 buy to let hotspots, average annual interest- only mortgage costs vary significantly from £5,940 in Blackpool to £13,548 in Bournemouth.
Mish Liyanage, Managing Director of The Mistoria Group comments: “Faced with increased taxation and tougher mortgage lending criteria, it’s so important for landlords to ensure they invest in properties that will maximise rental income and minimise void periods.
“Student property gives good returns on investment, as it delivers high yields and full occupancy. There is huge demand for shared student accommodation near the four universities and with a student population of around 60,000 and 60% of them requiring accommodation, Liverpool is great place to invest.
“Increasingly, investors are looking for new and renovated property for the sole purpose of the university students, many of whom want to live in affordable, shared accommodation. Over the last 12 months, student rents in the city have risen by 23% and now sit at an average of £128 per month as of May 2017.
“HMO student accommodation gives landlords much higher yields than a three-bed single bed property or a student pod. HMO properties can generate this significant increase in revenue because they are rented out to individuals, on a room by room basis. HMOs often provide between four and ten rooms, rented to individual tenants. Rent will typically include the internet, general utility bills and Council Tax.”
The Mistoria Group are high yielding student buy-to-let investment specialists, offering HMOs and armchair investments in the North of the UK, generating combined net cash yield up to 13% (Rental and Capital Growth). For more information on the firm’s current available investments and the services it offers, visit us at www.mistoriagroup.com or email at email@example.com or call 0800 500 3016