New data revealed Liverpool’s buy-to-let market has the highest average return on cash investment.
One & Only Pro, an investment portal, calculated the percentage of diamond property opportunities in buy-to-let hotspots across the UK. Diamond properties are investments that receive a top score of 10 from the portal, meaning the properties have the highest chance of rising in value.
The website found Darlington has the highest percentage of diamond properties at 22%. Burnley is tied for second and has the cheapest average property price on the list at £37,211.
Liverpool’s buy-to-let market
Out of the areas on the list, Liverpool boasts the highest average return on cash investment with one of the top diamond properties in the city earning a 78.2% return. The city by the Mersey’s top 10 diamond properties also have an average property price of £83,455.
Henri Sant-Cassia, chief executive of One & Only Pro, stated: “As we can see, investors in Liverpool can earn almost 80% Return on Investment. This figure includes the costs of buildings insurance, a gas safety check, service charges and ground rents.”
Last year Liverpool was the UK property market’s fastest growing city and was even named the buy-to-let capital of the UK. With rising yet still affordable property prices, Liverpool is proving to be a lucrative city to invest in.
Securing higher yields
One & Only Pro’s research has revealed that there are a range of profitable buy-to-let hotspots in the north of England. Buying a property at the right price can bring impressive returns and better gains in the long-term than investors and landlords focusing only on rental yields.
The portal urges property investors to search for the best deals in the top buy-to-let locations instead of looking at returns of a whole area. By making use of data, investors can secure yields over 20%, which is more than double the 8% yield the average landlord aims for.
“It’s shocking that people think buy-to-let is dead or is no longer a good investment as the real data shows something completely different,” Henri Sant-Cassia commented.