Housing: Landlord says some tenants are 'playing the system'
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Buy-to-let properties are a potential investment strategy for people looking to make money. Most people will buy property in the area that they live in, but widening one’s search radius could mean bigger returns for landlords.
To that end, InventoryBase recently released data which revealed the ten most lucrative cities for buy-to-let properties in the UK.
Glasgow tops the list, with an estimated rental yield of 7.52 percent. The average rent in the Scottish city is £793, and the average house price is £126,600.
That house price is the cheapest of all of the cities in the top ten.
That yield is considerably higher than second-placed Manchester, which has an estimated yield of 5.19 percent.
The second to tenth placed cities are separated by less than one percent of estimated rental yield, yet Glasgow is over two percent higher than Manchester just one spot behind.
Taking the bronze medal is Birmingham, with an estimated rental yield of 4.92 percent from an average house price of £176,800 and rent of £725.
Scotland features heavily on the list, with four cities out of the top ten coming from there.
Edinburgh clocks in at number seven, with a yield of 4.74 percent, with Aberdeen and Dundee placing in ninth and tenth with yields of 4.54 percent and 4.35 percent respectively.
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Edinburgh also has the highest average rent and house price in the top ten, at £950 and £240,600.
Two Yorkshire cities, Sheffield and Leeds, take fourth and fifth place on the list, with respective yields of 4.90 percent and 4.87 percent.
England’s North West also has multiple cities in the top ten, with Salford in sixth at 4.78 percent yield and Liverpool in eighth at 4.62 percent.
Liverpool has the lowest average rent, at just £500.
Warrick Swift, commercial director of InventoryBase explained the benefits of investing in property outside of one’s home city.
He said: “The majority of landlords buy property in the region they themselves live, but this isn’t always the case and landlords who buy further afield may find better returns.
“Initially, there will be a considerable investment to get the property up to scratch and all the official work completed before renters can move in.
“However, buy-to-let is an effective investment because it provides long-term steady returns.”
Here is the full list of the ten UK cities with the highest buy-to-let returns:
Glasgow- 7.52 percent estimated rental yield
Manchester- 5.19 percent
Birmingham- 4.92 percent
Sheffield- 4.90 percent
Leeds- 4.87 percent
Salford- 4.78 percent
Edinburgh- 4.74 percent
Liverpool- 4.62 percent
Aberdeen- 4.54 percent
Dundee – 4.35 percent
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