Manchester, Birmingham and Leeds named as best for buy-to-let
Manchester, Leeds, Birmingham, Cardiff and London have been named as the most lucrative places to invest in buy-to-let properties, according to the latest report released by Martin & Co.
It cites rental demand as one of the biggest reasons for investing in these cities, with the number of people likely to compete to rent each property one of the biggest factors in ensuring that investors are able to welcome a strong return on their outgoings.
Manchester and Leeds in particular are quickly growing cities at the moment, and the demand that has been in evidence over the last few years is only accelerating now that more businesses are coming to the cities, and digital economies in both are flourishing.
Another city that performs well in the index from the company is Cambridge, which has the benefit of a high percentage of young professionals, the most likely to rent homes, and the support given recently for the proposed Cambridge-Milton Keynes-Oxford corridor. Meanwhile, less obvious places like Barnet and Aylesbury have also been called fantastic opportunities for investors.
The report shows that demand is the largest factor that plays into the decision making of landlords in the UK, with 83 per cent stating that high demand in an area is the number one reason they will choose to spend their money there.
However, as well as demand from tenants, there are also a number of other factors that will allow PRS investors to see opportunities in certain cities. These include: visitor destinations, centres of excellence, cultural elements, investment in infrastructure, inward investment, student population, young professionals and commuter catchment areas.
The report also looked at the intentions for investment from landlords over the coming year, and it found that in the 12 months ahead, as many as 90 per cent of those who already own rental properties are looking to increase their portfolios, which shows just how strong the sector looks headed into the new year.