Liverpool top of Buy-to-Let league

New research from the property website Zoopla.co.uk shows the best cities for rental returns are across the north of England.  Top of the list is Liverpool where buy to let properties are achieving 6.6% yields (the annual income that can be earned on a property as a percentage of its value). This compares well to similar properties in London or the South East where under 5% is more typical.  And it’s not just the buoyant student rental market that’s driving the high returns as Cambridge demonstrates at the bottom end of the table with average yields of only 4.3%.

There are two main factors to look for when considering a buy to let investment.  Obviously rental demand is one, whether it comes from students, first time buyers unable to secure a mortgage, families in between homes or companies seeking corporate lets.  In Liverpool, one local agent estimates that demand for available rental property outstrips supply buy 5 to 1.  That certainly reflects our recent experience sourcing properties for clients in the city but, as the dynamics will vary from location to location, it is important to understand each local market. 

The other side of the equation is the purchase price of the property.  Areas that have seen larger falls in house prices or where more homeowners are struggling with mortgage repayments can provide the best opportunities for the buy-to let investor. 

Locations like Liverpool that can offer the ideal combination of high demand and relatively low property prices should remain a relatively good bet for some time to come.

Posted on the 30th January, 2012

Posted in Investment Property, Liverpool, North-West England, Property Market Tagged Buy-to-let, Liverpool, Merseyside, Property investment, rental, rental yields |

Both comments and trackbacks are currently closed.