Where are the best locations for UK buy-to-let?

 

Property investors are always in search of the next top UK buy-to-let hotspot, where future market growth combined with strong yields will reap the best rewards.

There are a range of different trackers and indices out there that can be useful for property investors and landlords looking for their next successful purchase.

Analysing house price trends can be a useful way of securing an investment with great future capital gains prospects. Equally, monitoring average rental values as well as tenant demand can ensure you achieve the best monthly rental yields, which is an important factor for an investor’s long-term gains.

Simply Business, which provides landlord insurance, has released a report analysing UK buy-to-let locations based on the increase in the number of insurance policies taken out by landlords. This is a measure of appetite in each area, showing where some of the hottest markets might be found.

London isn’t the top dog

The research found that the West Midlands city of Birmingham has experienced the biggest growth in property investors targeting the area. It registered an impressive 14.6% rise in landlord insurance policies in 2021 compared to 2020.

Birmingham has been touted as one of the most exciting cities in the UK in terms of the level of investment, regeneration and economic growth it is experiencing. This directly impacts the need and demand for housing, as growing numbers of inhabitants as well as businesses are attracted to the area.

Bristol was next on the list for growth in the number of landlords operating there, with a 12.7% rise since 2020. The city is often a favourite among London-leavers, as it contains much of the appeal of city living in the south at a more reasonable price tag than the capital.

Fourth in the list was Leicester (11.8% growth), closely followed by Manchester (11.4%), Liverpool (10.8%) and Edinburgh (10.7%). London was then seventh on the list, where landlord numbers taking out insurance has risen by 10.3%.

Greater rental yields in UK buy-to-let

Obtaining a property at the most competitive price, coupled with a high-demand location that ensures strong rents from tenants, is one of the best ways to maximise any property investment.

Historically, London has always been seen as one of the safest bets for UK buy-to-let investors, but this is no longer the case. While there is still a strong market there, landlords are finding that better yields – and capital appreciation – can be found in regional cities.

Alan Thomas, UK CEO at Simply Business, says: “The pandemic has contributed to a reshaping of the UK rental market. With rising house prices and an increase in average rent, there have been slower levels of growth in buy-to-let investment across the capital.

“Instead, many landlords are now looking to other areas – particularly those with a high student population – where they can attract a greater rental yield.”

Supporting landlords in 2022 and beyond

As homeownership continues to be out of reach for many, the role of landlords and the private rented sector will become even more important. A lack of supply continues to push up house prices, creating a barrier for some would-be first-time buyers.

As a result, UK buy-to-let landlords provide even more crucial accommodation for thousands of households. While many argue that government policy has been largely against the sector in recent years, there are a growing number of calls from the industry to make the market more appealing to landlords.

Thomas adds: “Contributing over £16 billion annually, landlords are a vital part of our economy. What’s more, the 2.6 million landlords across the UK provide accommodation to over 4.4 million households, so it’s encouraging to see growth in buy-to-let investment across all corners of the UK.”

“We can expect this to carry through 2022 as the country continues its recovery after Covid-19 and landlords look to make their next investment.”

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 UK buy-to-let

Where are the best locations for UK buy-to-let?

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.