The UK’s Top Rental Hotspots Revealed

/The UK’s Top Rental Hotspots Revealed

Recent analysis of the buy-to-let market has revealed the top rental hotspots in the UK and, unsurprisingly, the Northwest leads the way again.

Shawbrook Bank’s latest UK Buy-to-Let Report shows that despite the challenges facing landlords today, including recent tax changes and the uncertainly over brexit, there are still pockets of the country that are still attractive to the buy to let market. They predict that growth in the housing market will be slower over the next five years when compared to the previous few years, averaging at 4.5% between now and 2023.

The slowdown is particularly apparent in London, with economic uncertainty and higher stamp duty putting the brakes on investment in the capital. However, while London is expected to languish behind other areas of the UK for the next two years, other regions are showing more promising signs.  Shawbrook Bank found that the North West and the city of Manchester, in particular, are the top new rental hotspots.  The average UK house price is currently £228,000, which is 43% higher than the typical property value in the North West, at £159,000, which is helping to drive higher rental yields.

Other northern regions also come out well in the report. While the North West leads the ranking, with an average rental yield of 5.4%, Scotland comes in second with 5.3%, and Yorkshire and the Humber, at 4.9%.

Emma Cox, the Sales Director for Commercial Mortgages, says: “There are still interesting times ahead for savvy investors and good investment opportunities remain. However, when landlords invest far away from their home turf, they can run the risk of falling foul to local knowledge. Smarter local investors may be seeing an opportunity to divest themselves of their less desirable housing stock, so it’s important for buyers to do their research to make sure they understand the local supply and demand before investing.”

If you are interested in a particular area, head to our investors section to help you make informed investment decisions.

 

2018-11-26T12:30:14+00:00November 26th, 2018|Homige|