The top three buy to let locations with the highest rental yields in the UK so far this year are all in the North West according to a study by HSBC Mortgages reports Landlordzone.co.uk
Manchester is providing the highest rate of return at 7.93%, up from second in last year’s study, with Kinston upon Hull and Blackpool close behind on 7.81% and 7.35% respectively. London surprisingly featured at the other end of the table providing some of the lowest rental yields in the country.
According to the report the bank says that annual rents in Manchester have increased by 4% from 2014. Buy to let investors have been looking to purchase in the north as house prices have been generally lower so offer better returns. Typically a property in Blackpool would be in the region of £80,000 with Hull slightly lower on approximately £70,000.
The North West also has one of the largest student populations in Europe and over a quarter of the housing stock in the area is in the private rental sector.
The survey indicate that out of the 10 worst buy to let areas for rental yield, six are in London as rent increases have not kept pace with house price rises. Chelsea and Kensington have experienced a 2.87 per cent yield compared to the rise in the average property price to £1m.
It is clear that the buy to let market is buoyant in many areas of the country and would-be property investors should look for locations where house prices are being outperformed by rents. So always research a number of different areas before you invest and make sure you include all the extra costs like Buy to Let Property Insurance. Click4quote.com provides specialist buy to let property insurance cover so why not go online and get a quote today