Getting back to the UK property market. It looks as if buy to let investors haven’t been put off yet by Brexit or any taxes imposed by the government. Also if you’re an overseas investor the poor performing pound will mean there might be some property deals to be made. So excluding London where else are investors looking too in the UK this year.
Firstly, why are we looking outside of London and the greater London areas. It’s pretty obvious that the inner London and outer London areas are the best places for return on investment in the UK. But that also comes with a hefty price tag. Where as in these uncertain times you may want to look else-where for high rental yields and the ability to sell the property at a profit at a later date as well. With property prices that allow you to expand your portfolio further rather than waiting to see if you get a return on your investment first.
Where’s a great investment
This includes knowledge picked up along the way from articles, various friends, colleagues and family members. I’ve used data from LendInvest rental yields data for 2010-2016. The average yield this year is about 5%.
By far the best yield to be found outside of outer London is a 6.8% yield in Manchester which comes with and an average rent per year of £8,320.
Of the two areas next up in the list Blackburn is an unlikely candidate but due to low house prices the area comes up with a 5.8% yield but that is tempered by one of the lowest average rent per year of £5,408.
Perhaps the more attractive proposition is the Welsh capital offering the same 5.8% yield and a more attractive average rent per year of £7,800.
The south coast city has a yield of 5.6% and an average rent per year of £12,584. Which at this level of yield of the second highest on this list. However, do expect higher house prices on the South coast.
The first of the areas to the East of London offering a potential 5.6% yield and an average rent per year of £9.880.
Southend on Sea
Another seaside area again on the east coast offering a 5.6% yield and an average rent per year of £10,504.
The ever popular commuter city giving similar yields to the next two areas on the list. A 5.6% yield and an average rent per year of £10,452.
The yield may increase due to the high speed travel links soon to be introduced. Offering a 5.6% yield and an average rent per year of £8,684.
Perhaps a little too close to London this one. But again good future prospects and a potential 5.6% yield with an average rent of £9,308 per year.
Bristol, Liverpool, Milton Keynes, Oxford, Rochester, Oldham
All of these areas have a 5.5% yield with the average rent per year varying from £13,208 in Oxford as the highest and to £5,746 in Oldham as the lowest. But of course house prices are higher in the Milton Keynes, Oxford, Rochester and Bristol areas than the Liverpool and Oldham areas.
I hope this has been informative, interesting and you liked reading it.
That’s all folks this week but I’ll be back again next week. Please subscribe to my Virtual Demon blog and I look forward to your comments and feedback.