These are the best cities in Britain to be a landlord…

 

Oxford, Manchester, Edinburgh and London were named the top cities to be a landlord, but deciding what you’re looking for from your property investment is key.

Despite more challenging tax rules and regulations, landlords and investors are still finding ways to be successful in buy-to-let, and location is key. Aldermore’s Buy-to-Let City Tracker revealed the best British cities to be a landlord by assessing and analysing important categories, such as average house prices, monthly rental costs, yields, capital growth, vacancies and percentage of the city’s population that rents.

Damian Thompson, director of mortgages at Aldermore, stated: “Aldermore’s Buy to Let City Tracker shows there are still great short and long-term investment opportunities for landlords.

“The number of people renting in the UK has been rapidly growing, up 1.7 million in ten years, so private landlords are an increasingly central part of the housing market as supporting a robust and strong Private Rented Sector becomes more essential.”

In the tracker, Oxford was named the top place to be a landlord. More than a quarter of the city’s residents are renting, and rent costs an average of £596 each month. The average buy-to-let yield is 3.7%, but the downside of investing in this city is the high house prices with properties costing £511,695 on average. Many landlords in Oxford are making money through capital growth, but it’s important to note that short-term lets are typically not lucrative there.

Manchester is home to high yields and capital growth

As the second-best city to be a landlord in, Manchester has the best of both worlds with high yields, an average of 6%, and strong capital growth as property prices have grown steadily by 4% per year. Landlords have seen lucrative returns in both short- and long-term rentals across Manchester, offering more opportunities in the city’s buy-to-let sector.

Properties in this north-western city cost an average of £207,332, and 27% of the city’s population rents. As an additional 100,000 people are expected to be living in Manchester’s city centre by 2025, property investment in this thriving city is likely to continue to be lucrative for landlords and buy-to-let investors in the coming years.

London sees growing demand for rental properties

London was named the fourth best city to be a landlord as a quarter of the city’s population rents. The average price of renting a room per month is £630, which is the highest rental cost in Britain.

Additionally, the average property price in the capital is a whopping £617,238, while annual rental yields only come to 3%. Despite lower yields in the capital due to these high property prices, the growing demand for rental properties still make it an attractive city for landlords.

The top cities for landlords, according to Aldermore’s Buy-to-Let City Tracker, are:

  1. Oxford
  2. Manchester
  3. Edinburgh
  4. London
  5. Norwich
  6. Bristol
  7. Nottingham
  8. Cambridge
  9. Brighton
  10. Milton Keynes

As there are great areas to invest in long- and short-term buy-to-let properties across Britain, it’s important to find the right property and location to achieve your investment goals.

To find out about BuyAssociation’s property investment opportunities in cities that are great to be a landlord in, check out our investments page and sign up for more information.

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

Landlords to let rental

These are the best cities in Britain to be a landlord…

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.