It has been an interesting 12 months for the UK’s property investors, with the EU referendum and changes to the tax system, down to the snap general election. Landlords have had to work a little harder to find the most profitable options available in the market. And thanks to a new study from TotallyMoney.com, the UK’s best postcodes for buy-to-let yields have been revealed.
Looking at the top 25 buy-to-let hotspots across the UK, Liverpool came out on top. The first top four spots on the list went to Liverpool postcodes, including L7, which was named the number one place in the country for rental yields. And Liverpool topped a total of seven in the list as a whole. These postcodes include:
This area is right at the heart of the city centre, and includes two of Liverpool’s mainline train stations, the creative hub known as the Baltic Triangle, the Liverpool ONE shopping centre, the Liverpool Ropewalks area, and Liverpool John Moore’s University. This postcode is also home to our One Wolstenholme Square, The Residence and RopeWalks developments.
This vast area stretches along the city’s docks, around the North and East of the city centre, and into a good part of the Vauxhall district. This area in particular is currently seeing massive amounts of investment, from the £5.5bn Liverpool Waters project to the new stadium for Everton FC (one of Liverpool’s two Premier League football teams), as well as housing projects such as the ultra-modern Devon House student development.
Close to the city centre, this up and coming area just below the centre is currently seeing somewhat of a transformation. Like much of Liverpool, it’s making a good place for investors to consider, with fantastic developments like the historic Coleman’s Fireproof Depository on offer.
At Aspen Woolf, we’re not surprised to see these Liverpool postcodes have ranked so highly. With its thriving population of young professionals and numerous large-scale regeneration projects taking place in the city, it’s easy to see why the city has become such a popular place to live, and in turn, profitable place to invest.
We’re also pleased to see postcodes such as Huddersfield’s HD1 (in 7th place) and Plymouth’s PL4 (in 15th place), appearing on the list. We know just how much potential these less identified areas of the UK have, with developments like Crane Court in Huddersfield and Beaumont Square in Plymouth, demonstrating the kinds of high rental yields achievable.
Top 25 Buy-to-Let Property Hotspots
TotallyMoney.com have put together this handy map to help buyers see what the average yields are for different postcodes across the UK.
And Joe Gardiner, Head of Brand and Communications at TotallyMoney.com, had this to say about their findings:
‘Many people finance properties using a buy-to-let mortgage with the intention of boosting their income a little. The recent tax changes will move several landlords to a higher tax rate, making it harder to make money from investing in property in this way.
‘While this may put off many potential landlords from getting a buy-to-let mortgage, the buy-to-let hotspots map can show them where their investment will bring the best yield.’
In the current climate where tax changes are affecting profit margins, it’s important for landlords and those considering buy-to-let investments to look for these profit pockets in cities and towns that are providing higher average yields than much of the rest of the country – particularly London. This study goes to show that putting some careful thought into where you’re going to invest can truly prove to be the smartest move.
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And if you’re ready to start your investment journey, take a look at the properties we currently have available.