If you’re looking to invest in buy-to-let property in the UK, it’s worth knowing that Manchester has just been listed as the top place to be a landlord – pushing London into second place.
Online comparison portal GoCompare has compiled a list ranking the UK’s cities in terms of owning and running a buy-to-let investment, and Manchester has taken the number one spot as the best place to be a landlord.
The figures have been compiled using a number of measures – average property price, average yield, population under 35, number of properties available, number of letting/management agencies, number of new housing developments, properties currently available to rent, and rental price growth – in order to list 31 UK cities from best to worst.
Manchester’s low average property prices of £173,381, according to GoCompare, combined with excellent yields of an average 5.5%, contributed to its top position, along with the city’s impressive rental price growth of 5.76%. The number of new housing developments was also fairly high at 689, while there are more than 322,000 under-35s currently living in the city – many of whom will be privately renting tenants.
The runners up
London was ranked number two on the list, with average yields coming in at 3.05%, but high house prices potentially holding the market back with an average of £484,173 being paid for a home. The pool of potential renters in the capital is high, with almost 4.5 million under-35s, while there are 919 new developments and 50,728 properties currently available to rent. However, rental growth there is currently in the negative at -1.12%.
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Other cities that made it into the top 10 were Nottingham (4.46% yield), Liverpool (5.05% yield), Leicester (3.94% yield), Birmingham (4.61% yield) and Cardiff (4.78% yield).
Belfast took bottom place on the list, where yields were fairly strong at 4.26%, but the city was held back by other factors including a short supply of available properties for sale (123) and just 12 properties currently available to rent according to GoCompare, with rental price growth of 2.19%. Oxford, Brighton and Southampton also languished at the bottom of the rankings. See the full list here.