Manchester had only a small increase in average house prices (up from £104,244 in 2014 to £108,870) but has maintained strong rental demand. Annual rents in Manchester have risen 4% from £8,316 in 2014 to £8,628. It has one of the largest student populations in Europe; and more than a quarter of housing stock is privately rented (26.85%), the largest proportion of all locations.
Both Kingston upon Hull and Blackpool have entered the top three for the first time thanks to low average property prices and strong rental demand. With typical house prices of £69,135 and £79,654 respectively, Hull and Blackpool require the lowest initial investment of all locations researched. HSBC researched the 50 towns and cities with the most private-rental housing stock.
Tracie Pearce, head of mortgages at HSBC, commented:
“Our research shows buy-to-let remains an attractive option for investors, but it’s important they focus on locations where rents have outpaced house prices. This means not just looking at large towns and cities, but also commuter areas and those with high rental demand and concentrated employment such as a hospital or university nearby. Almost a third of areas in our report have seen a year-on-year growth in yield and almost half of the areas have achieved yields above 5%.”
“Buy-to-let is a big investment and shouldn’t be taken lightly; but with the right research landlords can feel confident that they can achieve good returns around the UK.”
