This article is a guest post written by Housebuyers4u.
This post has not been approved as a financial promotion by Resolution Compliance Limited (FRN 574048)
Investing in property has always been quite a reliable form of investment. Even in these testing times where Brexit is in full effect, taxes are increasing and people are unsure of what direction the property market will follow, if you can get your hands on a solid property you can make yourself a nice little profit. This being said, securing a profitable investment is reliant on a number of different factors, one of these includes; which areas and cities offer the best yields?
Before we look into this in more detail, it’s worth mentioning that despite all the extra pressure being put onto buy to let landlords (such as the reduction in tax relief), more landlords still feel confident about their own buy to let futures.
A survey carried out by Simply Business shows that over 56% of buy to letters are feeling confident about the state of buy to let expecting good things in 2017.
Furthermore, a recent interview carried out by Letting Agent Today, wherein they posed the question ‘Brexit and it’s effect on buy to let’ to David Cox, managing director of ARLA was answered by him saying:
”I rather doubt Brexit will pose a threat – I don’t believe there’ll be a compelled exodus of EU citizens “
In addition, he went on to say that Brexit could represent a positive sign for the private rental sector due to migrants who were possibly thinking about buying a property in the UK now putting that decision on hold and staying in private rental accommodation.
London has always been a safe and popular choice to begin investing, however with London being so pricey and requiring huge down payments for single properties many investors are looking into other areas to get the most out of their money.
Aspen Woolf is a property investment firm who regularly monitor trends and conditions within the property industry. In a recent review of the property market, they have identified the top 10 areas in the UK as being the best for buy to let. See below for more information.
(Source: Aspen Woolf)
From this table, we can see that if you want to do well in the buy to let market you should look to invest further north as opposed to nearer to our capital. The city of Manchester tops the list with a buy to let yield of is 7.9.%. Sunderland is number 10 on the list with a yield of 5.3%. however, this still makes for a great investment for those with less equity as the average property price is over £40,000 less than that of Manchester.
To further enhance the point that the north is great to invest in, Tarlochan Garcha, CEO at Kuflink, said:
“The rift between north and south continues, but this time the attention is turning north. Buy-to-let properties in the North can be a steady investment, attracting renters who cannot afford to step onto the property ladder and therefore choose to rent in good locations, which are well-suited to their lifestyle. “
Knowing which areas yield the greatest rewards will help you begin planning your buy to let journey. This is useful information whether you are an experienced investor or coming into to buy to let for the first time.
Please note, however, it’s important to seek the advice of professionals such as estate agents if needs be because their expertize can help you find the right property that suits your needs or agenda.
As a genuine house buying company who are regulated by a number of regulatory firms including the property ombudsman, we at Housebuyers4u do find ourselves involved in the purchase of some buy to let properties. In this instance, our opinion on this article would coincide with the research of Aspen Woolf. This being said for anyone who is looking to invest in buy to let, suitable properties can be found nationwide. The issue is spending the time and effort looking through portfolios, talking to agents and visiting auctions. If this is done correctly, you are sure to come across that perfect gem of a property sooner or later!
We hope our article has given you some insight on the state of buy to let at the moment and where you can begin if you are interested in getting onto the buy to let ladder!
Disclaimer and Legals
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).
