Lending and investment platform Lendinvest listed the nine most profitable areas in the UK to be a landlord, naming Manchester as the report’s number one.
By combining historical purchase prices from the Land Registry with with current average rental prices published on property website Zoopla, Lendinvest created its insightful list showing the best annual rental yields.
The recently published list shows one interesting correlation with the Brexit decision: Only of the listed areas voted to remain in the EU on June 23.
Christian Faes, Co-Founder and CEO at Lendinvest explained that the referendum could have an influence on the rental market:
“Brexit may create opportunities for property investors, particularly professional and experienced ones. House prices are expected to soften, so some would-be buyers may put off buying. But they still need somewhere to live, which is good news for landlords. What’s more, if house prices do cool as predicted, then investing in property will become even more enticing.”
Here the full list of Lendinvest’s Top 9:
6. Sunderland (Shared) – 5.6%
House prices are cheap and rents are comparatively profitable. Property took a dunk though over the last couple of years, so landlords should do their research before considering this investment opportunity.
6. Cardiff (Shared) – 5.6%
The high student population in Wales’ biggest city ensures rents stay high and give a good return.
6. Northampton (Shared) – 5.6%
The midlands’ centrepiece offers landlords great returns on rent. On top of that, property values increased by 2.6% over the last six years.
6. Oldham (Shared) – 5.6%
Although property prices haven’t experienced an increase over the last recent years, renting out property that you already own will get you a great rate of return.
5. Blackburn – 5.7%
Another star in the north which hasn’t had a drastic rise in prices but definitely keeps its rental prices up.
2. Outer London (Shared) – 5.8%
If making a lot of money from rent is you main goal, outer London is one of your best bets.
2. Luton (Shared) – 5.8%
Probably best known for its airport, this city doesn’t only have high rental yields but also capital gains, with house prices increasing by 5.8% in the last six years.
2. Coventry (Shared) – 5.8%
Property prices might have only seen a small increase in recent years, rental yields however are very high.
1. Manchester – 6.8%
Generation Rent is fleeing London and its horrendous prices and often find themselves settling down in Manchester. Add five universities to the list of reasons for increasing prices, Manchester becomes the most profitable place to rent out a property in the UK.
