Buy to let is still a popular route for people who have money to invest, but which areas provide the best balance of affordable purchase prices and good rental potential over time?
The rules around buy to let are changing https://www.which.co.uk/news/2018/07/8-things-that-are-changing-for-buy-to-let-landlords-in-2018/ and this is causing many landlords to re-evaluate their property portfolios. Getting the best returns from your investment is more important than ever.
Increasingly, investors are looking to the Manchester area for buy to let properties. It currently has some of the highest rental yields and has shown steady growth through 2017. This is driven by a booming commercial sector – the BBC’s move of many of its operations to Salford has helped here – as well as a large student population.
The Midlands is an area to watch too, with areas like Birmingham and Leicester climbing up the buy to let popularity charts. There are plenty of services like emergency glaziers in Leicester available to support landlords, and if HS2 goes ahead, travel times to the South East will be cut, making the area more attractive to business and professional people.
Growth versus income
The initial attraction of buy to let is, of course, rental income. However, many investors also hope to make gains on the value of the property over time. Commuter towns around London have in the past shown the strongest rental incomes, but property prices here are, of course, higher. Even so, these towns like Colchester, Slough and Hemel Hempstead continue to lead the way for price growth, so if you can afford these areas the potential for capital gains is high.
Looking to the North and Midlands makes it easier to break into the market with a smaller investment. There is, of course, still strong potential for the value of the property to increase. You need to keep it in good condition and repair any damage quickly – businesses like NandU Emergency Glaziers in Leicester visit https://www.nanduglass.co.uk/ can help here – and keep the property in good decorative order.
A well-maintained property will also be more attractive to tenants, and therefore, yield higher rentals too. Buy to let is not a short-term investment, but choose your property well, and in the right area, and you’ll find it can yield impressive returns.