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Manchester Revealed as Most Profitable Place for Landlords

Manchester has been ranked as the top city in the UK for rental yield, based on new rankings from online property agency LendInvest.

Manchester has been ranked as the top city in the UK for rental yield, based on new rankings from online property agency LendInvest.

Manchester tops the list by offering buy-to-let investors rental yields as high as 6.8% between 2010 and 2016; followed by Coventry, Luton and Outer London all displaying rental yields of 5.8% throughout the same period. Next in the list is Blackburn, a large town in Lancashire, with an average rental yield set at 5.7%.


Oldham, Northampton, Cardiff & Sunderland all share average rental yields of 5.6%; whereas, Rochester, Milton Keynes, Inner London and Southend-on-Sea offer rental yields of 5.5%. At the last two spots in the list, there are Liverpool and Sheffield with rental yields of 5.4%.


The research utilises the latest average rental prices on property website Zoopla and historical data from the Land Registry to compose a quarterly Buy-to-Let Index - ranking UK districts and postcodes based on annual rental yields, capital gains and overall return on investment.


Home to the second fastest population growth in the UK, rising capital values and a housing undersupply that mirrors the rest of the UK, Manchester has become a target area for property investors.


When assessing capital gains on property, LendInvest also found that the West central postcodes of London rank the highest, with an average return of 11%, as the rate of house price growth in the area has largely exceeded the rest of the UK.


Looking at the overall return on investment (ROI), including rental yield and capital gain, East London postcodes topped the list with a ROI of 17.5%.


Christian Faes, Co-Founder and CEO of LendInvest, commented: “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.”


Top UK Buy-to-Let Hotspots July 2016

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