Savills research reveals top ten BTL cities

Savills research reveals top ten BTL cities

For many years, London has been the darling of the property investment market, providing high yields and booming tenant demand. However, with sky high property prices in the capital, investors are looking further afield for the opportunities.

New research from Savills has analysed the key drivers for the rental market and identified the top cities for buy-to-let investment.  The top three positions go to Manchester, Reading and Bristol, because of their strong economic growth factors and reputation as vibrant, desirable places to live.

Though this is not an exhaustive list, Savills has highlighted investment prospects in cities set to experience a significant housing shortfall, such as Oxford.  The research examined the economic prospects of each city, which included analysis of historic and future growth sectors.

The research also looked at the investment potential of each city, by taking into account the net income return, rental growth prospects and capital value growth; housing supply and demand in each city, including objectively assessed need, household projections, population growth forecasts and dwelling completions; and how the rental market has evolved and grown in
these cities.


Top Ten Cities for Investment

•  Manchester
•  Reading
•  Edinburgh
•  Bristol
•  Brighton
•  Leeds
•  Glasgow
•  Cardiff
•  York
•  Milton Keynes
•  Salford
•  Birmingham
•  Oxford

Peter Armistead of Armistead Property comments: “House prices in London are about five times what they are in Manchester, but salaries are only 30% higher.  Manchester is a very affordable place to live and demand for property is soaring in the city, thanks to the expansion of the MetroLink tram system, the trendy Northern Quarter and the BBC Media City.
 
Manchester has vibrant restaurants, bars, clubs plus a great music scene, galleries and museums. It also has an amazing student community and its universities, teaching and research facilities are truly world class.  It is home to nearly 100,000 students, making it one of the largest student cities in Europe. Despite all of its many advantages and attractions, Manchester is a very affordable place to live and many students chose to carry on living there after they graduate, as well as graduates from other areas moving to Manchester. Furthermore, wages relative to property costs are a very important factor in attracting these people.

Manchester is a great place for BTL investment. An average residential property in Manchester is just £155,000, while a flat in a good area, costs as little as £120,000.  A property in the city can provide a 5% minimum cash rental yield and a typical 12% total cash yield, including 7% capital appreciation.  Demand for rental accommodation is strong and by comparison with other regions, housing is cheaper.  
 
It’s not surprising that investors are turning away from London to more fruitful, regional cities like Manchester.  If investors can purchase cheaper properties with better yields, they will have the opportunity to protect and boost their profits in the longer term.”

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brandonlee10
brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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