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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 Area Area Average value of property Number of sales in the last 12 months Current average asking price Current average rental price (pcm) Buy to let yield (%)
M Manchester £177,686 11625 £202,484 £1,339 7.94
CF Cardiff £187,337 12356 £173,850 £1,054 7.28
LS Leeds £225,551 10339 £204,072 £1,217 7.16
L Liverpool £164,590 6859 £175,641 £1,027 7.02
WS Walsall £195,383 4995 £193,944 £1,106 6.84
NE Newcastle upon Tyne £184,224 12850 £173,666 £873 6.03
S Sheffield £194,673 6693 £180,126 £888 5.92
G Glasgow £182,716 16454 £165,046 £786 5.71
B Birmingham £189,898 10396 £203,990 £921 5.42
SR Sunderland £134,891 2282 £133,028 £587 5.3

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 Area Area Average value of property Number of sales in the last 12 months Current average asking price Current average rental price (pcm) Buy to let yield (%)
WC Western Central London £936,660 Not available £1,486,208 £2,877 2.32
BR Bromley £547,661 4121 £633,812 £1,287 2.44
LD Llandrindod Wells £215,894 556 £247,659 £514 2.49
WD Watford £563,462 3147 £678,837 £1,452 2.57
SG Stevenage £414,561 5972 £476,816 £1,053 2.65
HR Hereford £267,871 2217 £306,503 £692 2.71
AL St Albans £595,386 3271 £667,922 £1,521 2.73
CB Cambridge £416,239 5322 £446,454 £1,020 2.74
EX Exeter £290,770 9139 £315,125 £736 2.8
WR Worcester £281,073 4254 £288,729 £674 2.8

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