Where are 2017’s buy-to-let hotspots?

A new investigation has revealed the latest UK buy-to-let hotspots, which include Manchester, Leeds, Cardiff and Liverpool.

Of course, the key to buy-to-let investment is to secure a solid rental yield and potential for capital growth through increased house price values.

Hotspots

Data from Aspen Wolf has revealed the latest buy-to-let hotspots to be in these locations. Oliver Ramsden, founder and director of Aspen Wolf, noted: ‘The UK property market stayed strong in 2016 despite a turbulent year, with confidence remaining in the buy-to-let sector in particular.’[1]

‘Rental growth increased but at a slower rate than 2015; this was to be expected however, notably due to the unexpected Brexit result stalling market movement for a short period,’ he continued.[1]

Mr Ramsden went on to say: ‘House prices should start to increase above the 3% mark again in 2017, especially in buy-to-let hotspots which we have identified.’[1]

The top-ten best buy-to-let postcodes were found to be:

Postcode AreaAreaAverage value of propertyNumber of sales in the last 12 monthsCurrent average asking priceCurrent average rental price (pcm)Buy to let yield (%)
MManchester£177,68611625£202,484£1,3397.94
CFCardiff£187,33712356£173,850£1,0547.28
LSLeeds£225,55110339£204,072£1,2177.16
LLiverpool£164,5906859£175,641£1,0277.02
WSWalsall£195,3834995£193,944£1,1066.84
NENewcastle upon Tyne£184,22412850£173,666£8736.03
SSheffield£194,6736693£180,126£8885.92
GGlasgow£182,71616454£165,046£7865.71
BBirmingham£189,89810396£203,990£9215.42
SRSunderland£134,8912282£133,028£5875.3

Where are 2017’s buy-to-let hotspots?

Weak

On the other hand, London’s letting market slowed last year, with rents peaking during April.

Ramsden observed: ‘We forecast this trend to continue, especially within prime central London hence have identified West Central London or the WC postcode, as the top UK location to avoid in 2017.’[1]

The worst locations in terms of rental yields were found to be:

Postcode AreaAreaAverage value of propertyNumber of sales in the last 12 monthsCurrent average asking priceCurrent average rental price (pcm)Buy to let yield (%)
WCWestern Central London£936,660Not available£1,486,208£2,8772.32
BRBromley£547,6614121£633,812£1,2872.44
LDLlandrindod Wells£215,894556£247,659£5142.49
WDWatford£563,4623147£678,837£1,4522.57
SGStevenage£414,5615972£476,816£1,0532.65
HRHereford£267,8712217£306,503£6922.71
ALSt Albans£595,3863271£667,922£1,5212.73
CBCambridge£416,2395322£446,454£1,0202.74
EXExeter£290,7709139£315,125£7362.8
WRWorcester£281,0734254£288,729£6742.8

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