North fares well in new buy-to-let rental yield stats

 

Knowing which locations might give a better return on an investment is vital when mulling over a property option.

Buying to rent out to students is a popular choice, and new figures from Totally Money have revealed that many of the country’s highest yields from buy-to-let are to be found in postcodes in towns and cities with universities.

And Totally Money’s top 20 reveals that properties from the East Midlands northwards bring the best returns, with only ninth-placed Southend-on-Sea outside that area.

Healthy rents by the Trent

NG1 in central Nottingham tops the list a yield of 11.99%, although there are just 44 properties rented out in the postcode, where there’s an average rental value of £1,525 per month. However, NG7 is fifth on the list at 8.89%, indicating a strong market for renting to students at the universities of Nottingham and Nottingham Trent.

Liverpool, recently named as one of the most appealing buy-to-let markets in the UK, also performs well in the new figures. A quarter of the Top 20 postcodes are in the Merseyside city, and L7, which includes Edge Hill, Fairfield and Kensington returns an average rental yield of 9.79%. In Manchester and Leeds, the traditional student areas of Fallowfield and Headingley respectively still perform strongly with figures of over 7%. Recent figures from all three cities showed around 80% of students in each were happy with their accommodation choice.

Totally Money figures

Other places in the top 20 with large student populations are Newcastle, Sheffield, Bradford, Huddersfield and Preston. The latter was named as the UK’s most improved city to live and work in by PwC, and as well as an expanding student population, it is now seen as a base from where Liverpool and Manchester can be commuted to.

Students keen to secure accommodation early

Investors should bear in mind that competition for good accommodation is hotting up in student-centric locations. A recent study by Which revealed that a quarter of students start looking for their next academic year’s accommodation by the end of November of their first term.

With graduates often inclined to stay where they studied once they start working, and with young professionals attracted to areas with strong student demand for facilities and lifestyle reasons, forward-thinking investors may want to consider this new data when considering these markets.

 



Research produced by TotallyMoney.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Map of the UK and Ireland under a magnifying glass

North fares well in new buy-to-let rental yield stats

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.